No hard credit check or traditional deposit required
Typically when you apply for a credit card, the issuer conducts a hard inquiry that temporarily lowers your credit scores. You don’t have to worry about that with the Self Secured Visa® Credit Card. (The issuer may conduct what's known as a "soft inquiry," but those won't harm your scores.)
And unlike with most secured credit cards, you won't need to come up with a set lump sum ahead of time that establishes your credit limit. Here's why:
The card works in tandem with a Credit Builder Account, which is a secured installment loan that you must take out before becoming eligible for a Self Secured Visa® Credit Card. Though this loan also doesn’t require a credit check, it requires effort on your part and an administrative fee of $9 (this is a nonrefundable, one-time charge).
You'll pay the Credit Builder Account in monthly installments, starting at $25 per month. The installments you pay accumulate in a federally insured certificate of deposit (this will earn interest, but you don't get to keep it). To be eligible to get the Self Secured Visa® Credit Card, you'll need to have saved at least $100 (plus meet a couple of other requirements). In terms of a deposit that is relatively low compared with what other secured credit cards require.
Choose your own credit limit
Once you’ve opened a Credit Builder Account and held it for some time, it might be possible to qualify for the Self Secured Visa® Credit Card if you meet these other requirements:
Saving $100 or more in the certificate of deposit. (This will serve as your security deposit.)
Making three on-time monthly payments.
Maintaining an account that is in good standing, with no outstanding fees.
Once you have the Self Secured Visa® Credit Card, the minimum amount allowed as a security deposit is $100, but you’ll get to choose how much of your savings to put toward it. This amount will determine your credit limit. As with traditional secured cards, you can get the deposit back upon closing the account in good standing.
Accounts in good standing may also have opportunities to increase the card’s credit limit over time. As you make payments on your Credit Builder Account each month, you can choose to increase your credit limit up to a maximum limit of $3,000. Plus, Self considers those who have held a Self Secured Visa® Credit Card for six months or longer for an unsecured credit limit increase. To determine eligibility for an increase, Self performs a soft inquiry that doesn’t affect your credit scores. The company also reviews your income and account management history, among other factors.
🤓Nerdy Tip
You don't necessarily need to have paid off the Credit Builder Account loan to qualify for the Self Secured Visa® Credit Card. You need only to have saved enough in the certificate of deposit and met the card's other criteria (listed above in the bulleted section).
Payment history reported to credit bureaus
When you use the Self Secured Visa® Credit Card and pay the bill, that payment history — which is a large factor in your credit scores — is reported to all three major credit bureaus: Equifax, Experian and TransUnion. Another major factor in your scores is your mix of accounts, and with Self you get an installment loan and a credit card in one model.
