All of us want good credit right? The reality is that some are not there yet, or feel like they can be better. So let’s talk about self-lending. Self lending is a savings account that helps you build credit. A bonus is that it counts as an installment loan. After paying a $25 payment for 2 years you will have a little over $500 in a CD that you can then withdrawal. And it’s only about $10 to get started.
So let’s say you are brand new to establishing credit. Well, self lending is a good option because it will help you get an account to report on your credit report. After a period of time, they will also offer you a secured credit card which will further allow you to build credit. So it’s a perfect choice for those who want to build credit without getting into debt.
What if you have credit, but want to improve your credit score. This is a good option for you too. See, in order to qualify for a Real Estate loan, you need at least 2 tradelines or accounts reporting to your credit. So if you only have one credit card, this would be a great addition to you tradelines. Another thing to take into consideration is tradeline mix. This means that the credit bureaus like to see both revolving lines (credit cards) and installment lines (auto, home, personal loan, etc.) on your report. Self lending will help you with the mix of both of these tradelines.
I personally just signed up because I currently do not have an installment line on my credit, so I wanted a better mix (800 here I come).
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