*This post contains referral links. I may be compensated for your clicks!*
My self lender account has been nothing short of a success for my credit. I was able to talk about just how helpful it was for my credit in my How To Build and Boost Your Credit post from my Purchasing Your Family Home series. With so many people gearing up to face their finances head on in the New Year, I’m getting more and more questions about not only savings and budgeting, but also ways to increase credit scores.
I don’t always get to talk about the importance of good credit and your credit scores, but because I’ve been blogging through our family home buying process the topic has actually come up a lot. I know that so many of my lovely subscribers (Are you one? Because you should beee!) are interested in purchasing their own family home in the future, so why not talk about it!?
Check out my post “7 Steps to Purchase Your Family Home” here!
So, a few things for the people who don’t know …
Self Lender is an online credit building CD account. It helps with boosting your credit score by reporting on time payments (as long as your payments are ON TIME) but the best part about it is how it holds your monthly payments for savings and distributes it back to you at the end! You essentially get a credit boost for an installment loan, but you’re really just paying yourself monthly, and tucking away your own money for savings. That’s a WIN.
You also don’t get a ding on your credit report for an inquiry, and it starts reporting almost immediately. I personally saw a credit increase of 50 points within the first 30 days of reporting, and 5 or 10 point raises after that. They have a few “loan” options depending on how much you can afford to save every month, and how quickly you plan to reach your savings goal. One is for as little as $25 a month.
A few more things to be aware of …
Now, because self lender reports as a (hopefully positive) installment loan on your credit report, if you are planning to make a big purchase sometime soon, like a house or a car, this “loan” will be viewed as a positive revolving debt on your credit report. No problem though, I would just recommend doing this and completing the CD before running your credit for your big purchase. You do have the option to pay in full at any time and close out your self lender account.
Overall, I can’t recommend self lender enough! I’ve been working really hard on my credit over the last year or so and seeing that big jump that simply trying out self lender has given me was well worth it. I chose to do the $25 option this time, but I actually plan to open another Self Lender CD with a larger monthly payment once this one is completed. You can honestly never have enough savings, and any boost on my credit report is a winner for me.
If Self Lender sounds like something that you’d be interested in trying in the New Year, check out my referral code and receive $10 towards your personal savings here!