Last updated on April 7th, 2021
Choosing the right secured credit card can be difficult. With so many options on the market, how can you decide which is right for you? Here are five reasons why you should consider getting the Self Visa:
What is the Self Visa® Credit Card?
First off, what is the Self Visa?
The Self Visa® is a secured credit card from fintech and credit builder firm, Self. The card features a fairly standard annual fee and an average APR on purchases. However, what makes the Self secured card so interesting is how it can help users build their credit score.
The Self Visa is a secured credit card that pairs with an existing Self Credit Builder Account. The card has no formal approval process. Instead, hopeful consumers simply need to open a Self account and save over $100 to fund the secured Visa account.
Self’s Credit Builder Account is a unique loan product where individuals with no credit history or poor credit open a loan account to “pay off” the loan into a certificate of deposit (CD) account. Once that account reaches $100, account holders can use those funds to open a Self Secured Visa credit card account.
5 Reasons to Consider Getting a Self Visa Credit Card
Here are five of the best reasons why choosing a Self Visa is a good idea:
1) No Credit Check Required
The Self Visa features no credit check when opening. Unlike other secured credit cards, the Self has no hard inquiry – or even soft inquiry – when applying because it requires an existing Self Credit Builder Account to open.
While a Self Credit Builder Account does place a soft inquiry on your credit report (it asks for basic information like your Social Security Number for verification purposes), the secured card does not need any additional info.
2) No Upfront Deposit
Opening a Self Visa account requires having a minimum amount of funds in the Self Credit Builder Account. Once the account holder makes three monthly payments on time – and has more than $100 in their Credit Builder Account, they can select to open a Self Visa credit card account.
Secured credit cards require a cash deposit to open, but with Self, those funds come from the Credit Builder Account. This process means there is no out-of-pocket expense or upfront costs when electing to open a Self Secured Visa account.
3) Build Your Credit 2X As Fast
Because the Self Visa requires a Self Credit Builder Account to open, cardholders can build their credit score twice as fast as a typical secured credit card. This combination of accounts means that making on-time payments can help you build a positive credit history and boost your credit score at double the speed.
Plus, using the Self Visa and Credit Builder together can also help diversify your account types. The Credit Builder Account is an installment loan, while the Self Visa is a revolving line of credit, making the combination perfect for demonstrating experience with various credit accounts.
Lenders like applicants with diverse credit type histories (also known as a good credit mix). This means Self Visa cardholders may have a better chance of getting a mortgage, auto loan, or other credit types in the future versus those with only secured card experience.
4) Regular Reporting to the Major Credit Bureaus
Building credit requires on-time payments and low credit utilization. It also requires regular reporting to the three main credit reporting bureaus (Equifax, Experian, and TransUnion). Some secured cards – or other unsecured credit cards for bad credit – report to one credit bureau only. Fortunately, the Self Card reports to all three major credit bureaus every month.
5) Enjoy Visa Perks While Building Credit
The main goal of a secured card is building credit with regular payments and responsible usage. However, that’s not to say that secured credit cards don’t offer other perks versus a debit card or different types of payment.
One of the great aspects of credit cards like the Self is that they provide a range of purchase protections and other benefits courtesy of the Visa payment network.
The Self Card is a Traditional Visa credit card, meaning cardholders can expect the typical array of protections that Visa is known for, including:
- Cardholder Inquiry Service: 24/7 access to Visa customer service representatives who can provide detailed information for members in all major languages.
- Lost or Stolen Card Reporting: Visa will help you block your lost or stolen card and prevent fraudulent activity.
- Emergency Card Replacement & Cash Disbursement: Visa will work with you to get you a new card (and emergency cash, if applicable) should you lose your Self Card.
- Zero Fraud Liability: Cardholders pay nothing if their card is subject to unauthorized use or theft.
The Self Credit Builder Account and associated Secured Visa® Credit Card are an excellent combination for quickly building a positive credit history. Because the two accounts work together seamlessly, meeting the minimum requirements and paying on time doubles the impact on your credit score.
If you want to build your credit score quickly or want the chance to gain experience with a variety of credit products, the Self Card is an excellent credit option to consider.
Related Article: How Does Experian Boost Work?
Featured image by Matthew Henry / Burst