Is the Self – Credit Builder Account with Secured Visa Credit Card worth it?

If you need to build credit but you can’t seem to get approved for a traditional credit card, the Self – Credit Builder Account with Secured Visa® Credit Card could be the answer you’re looking for. This secured credit card is easy to get approved for, provided you’re willing to make payments to a savings account in your name. After you build up at least $100 or more in savings, you can allocate some of your funds toward your new credit limit and begin using this secured card to build credit for the future.

To qualify for the Self Secured Visa Credit Card, you’ll need to open a Credit Builder Account with a company called Self first. You also have to make at least three months of on-time payments toward your dedicated savings account with at least $100 or more in progress made so far.

With all these details in mind, it’s easy to wind up asking yourself an important question: Is the Self Secured Visa Credit Card worth it? Here are some situations where the card is well worth the effort, as well as scenarios where you may want to consider a different plan for credit-building altogether:

When is the Self – Credit Builder Account with Secured Visa Credit Card worth it?

The Self Secured Visa Credit Card will likely be worth it for you if any of the following scenarios apply:

You want to build credit with no credit check required

The Self Secured Visa Credit Card is different because it doesn’t require a credit check like other credit cards do. Due to this fact, you are virtually guaranteed approval as long as you can meet the requirements for this account, such as making three on-time payments and building up at least $100 in your Credit Builder Account.

Self even reiterates this fact in their FAQs:

“If you meet the eligibility criteria for the Self Visa® Credit Card then no, you will not be declined,” the lender writes.

By using the Self Credit Builder account and the Secured Visa Credit Card responsibly, you’ll likely see your credit score start to rise.

You need time to save up your security deposit

The best secured credit cards require you to come up with a minimum security deposit of $200 to $300 to begin building credit, yet the Self Secured Visa Credit Card lets you start saving toward your security deposit before you apply. This makes it ideal for people who need some time to save up their security deposit but want to do so in an organized and strategic way.

You want a Visa credit card for purchases

The Self Secured Visa Credit Card is a real Visa card, so you can use it with millions of retailers and vendors that accept Visa worldwide. This makes the card ideal for in-person shopping as well as online purchases.

When is the Self – Credit Builder Account with Secured Visa Credit Card not worth it?

Here are some situations where a different credit-building product could leave you better off:

You want to pay $0 in fees

The Self Secured Visa Credit Card comes with a $25 annual fee that is charged on your first credit card statement and again every 12 months, yet there are plenty of secured credit cards that come with $0 in unavoidable fees.

Also, note that the variable purchase APR on this card is incredibly high at 29.24 percent to 31.99 percent depending on which of Self’s partners issues your card, so it’s a poor choice for carrying a balance for the long term.

You have the cash saved up for a traditional secured card

If you have $200 or more in savings built up in your own account, you can consider almost any other secured credit card on the market today. After all, the minimum security deposit is just $200 for popular secured cards like the Discover it® Secured Credit Card. For the Capital One Platinum Secured Credit Card, you might need even less than that, as Capital One will accept security deposits as low as $49 depending on your qualifications.

You want a secured credit card that earns rewards

While the Self Secured Visa Credit Card makes it easy to save up your security deposit with monthly payments, the secured card itself doesn’t offer any rewards. By contrast, several of the top secured cards offer up to 1.5 percent cash back for each dollar you spend, such as the Capital One Quicksilver Secured Cash Rewards Credit Card.

The Self – Credit Builder Account with Secured Visa Credit Card vs. other cards

The Self Secured Visa Credit Card stacks up to other credit cards in a unique way. Cardholders aren’t just getting a secured credit card — they’re getting an account that will help them save money in a very structured way.

A card with a similar structure is the Chime Credit Builder Secured Visa® Credit Card. Chime users must open a Chime Checking Account, then get qualifying direct deposits sent to that account. After that, users can open a Credit Builder account, where they’ll move in money from their Chime Checking Account to fund their card. Any purchases made with the card will be paid off by the funds you move to the card from your checking account — almost like a prepaid card.

Unlike the Self – Credit Builder Account with Secured Visa Credit Card, the Chime Credit Builder Secured Visa Credit Card doesn’t charge an annual fee. It does, however, have more stringent rules about funding their card. With Self, you can fund your Credit Builder Account with any type of deposit, but with Chime, you need to start off with a direct deposit from “your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit or Original Credit Transaction (OCT),” according to their website.

Just keep in mind that there are plenty of other credit cards that could help you build credit without needing a credit builder account attached.

Should you get the Self – Credit Builder Account with Secured Visa Credit Card?

For the most part, the Self Secured Visa Credit Card works best for people who want a secured credit card without having to go through a credit check, as well as those who want to save up their security deposit over the span of a few months. This card is also one that will approve you regardless of the past mistakes you have made with credit, even if you have a bankruptcy on your credit report.

That said, people who want to build credit do have plenty of options, including the chance to get a secured card that earns rewards with no annual fee. With that in mind, you should only get the Self Secured Visa Credit Card if you have taken the time to compare all your available options.

The bottom line

Before you decide on this card, we also suggest reading over our Self – Credit Builder Account with Secured Visa Credit Card review.

In the meantime, you should compare other credit cards for bad credit, as well as credit cards for no credit history. Once you spend some time looking at offers geared to your credit rating, you’ll be able to make an informed decision.

Issuer-required disclosure statement

**The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.

*No Interest: Out of network ATM withdrawal fees and over the counter advance fees may apply. View The Bancorp agreement or Stride agreement for details; see back of card for issuer. **No Minimum Security Deposit: Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.

-To apply for Credit Builder, you must have an active Chime® Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.

*SpotMe is an optional service that provides fee-free overdraft if a member meets certain qualification criteria. Chime SpotMe enables members to draw their Chime Checking Account negative for debit card purchase transactions, ATM withdrawals, cash back transactions or “over the counter” or OTC withdrawals (“Qualifying Transactions”) up to a specified amount (the “Limit”). This Limit is determined by Chime in its sole discretion based on the history of any Chime-branded accounts you have, direct deposit history and direct deposit amounts, spending activity and other risk-based factors.

**Safer Credit Building – On-time payment history may have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.