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Anyone tried Self Lender and did it raise score?

Valued Contributor

Re: Anyone tried Self Lender and did it raise score?

A) Don't over think it.....
Adding an installment account, when you don't have a 1st one reporting is of value in risk scoring, PERIOD!
It adds to both, the volume and mix of credit being managed....
That's just the A, B, C's of building a profile from the ground up.

B) The vendor of said installer is of little importance...one just needs to presence of the account to yield to benefit
Car loan, personal loan, Popsicle loan all will do the job the same.

As mentioned S/L is 'an' option but many banks/CU's offer the exact product, perhaps under a quirky name but the borrow n lock, a CD/Savings account = an option

But it's about the same as you putting $500 of the rent money in an account and then having the credit union 'lend' you $500 against the $500 you just deposited, 2 minutes ago....duh!

The net results are the same
You have a $500 loan reporting and you have $500 to pay the rent....it's just slight of hand😉
Again many times, it's a cheaper route to go and you're building a relationship with a more rounded vendor, that can offer you additional types of TL's over time.

Ex:
Run this thing through your CU/local bank, after say 6-10 on-time payments...they have the ability to offer different unsecured products to 'you', as you are now one of 'their' in-house clients...one they can see managing a TL well, as most lenders will AR ( soft pull or account review) their own clients...

Their objective in offering the product is to relationship build and get more products in your pocket ( there's no real 💰, in SSL) the goal is to provide a 'jump-off' for 'their' customers.

Again, SL is fine but if CU XYZ holds your 'fake' loan...they have also want YOU holding 'their' after a few months, then they'll want you in one of 'their' car loans, then a LOC, perhaps a mortgage down a line?

Sometimes long term benefits can be found or lost based on who & how you start
Best of luck
Message 31 of 50
New Member

Re: Anyone tried Self Lender and did it raise score?

So FYI I did not see any major jump in score at all - also I am in porcess of qualifying for mortgage and my lender used a simulator tool that outlines "what if" scenarios and she said that this type of CD INSTALLMENT LOAN is not reported as REVOLVING CREDIT so does nothing for your score. But in any case I will have a CD in the end.

Message 32 of 50
Valued Contributor

Re: Anyone tried Self Lender and did it raise score?

It has nothing to do with revolving credit.. it has all to do with Credit MIX....

How long have you had it for... barring you have no other installment loans it has to be paid off to a certain percentage before youd notice a difference... But your already in the morgage process so you may not be able to visibly see the results.. and it will be moot after you get the mortgage because it will take over in the credit mix....and youll take a hit for that...

 

 

Message 33 of 50
New Member

Re: Anyone tried Self Lender and did it raise score?

She said it does nothing to raise score. Please elaborate, because I signed up with that understanding.

Message 34 of 50
Contributor

Re: Anyone tried Self Lender and did it raise score?


cmoscinski wrote:

She said it does nothing to raise score. Please elaborate, because I signed up with that understanding.


If you already have an installment loan on your reports, open, this doesn’t do anything for your score but add another positive score. It helps the most whe you’ve never had an installment loan before. It adds to the different types of loans on your report. Examples are revolvers (credit cards, Hellocs), Installments (personal, car. School, home loans) and other (SSA overpayments etc) but to get the full extra points the loan needs to be at 8.8% or less of its original loan amount. 

 

So the loan loan may add points in credit mix and positive accounts total. No one can say the exact amount of points it may add, but in the right newer profile circumstances it could be from 5 to 30 points maybe. In your case if you have other installment loans open or closed on your profile it may not affect your score much at all. Just depends on all the accounts in your report.



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Current Score: 703
Goal Score: 800


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Message 35 of 50
Valued Contributor

Re: Anyone tried Self Lender and did it raise score?

The bank employee is right and wrong, at the same time...where they 'learn' to over focus on the one scenario, their employers want them to seem "knowledgeable" of...many times they misspeak and 'under-explain' (based on lack of mastery vs wilful deceit)

A) Of course NO installment account of ANY kind would report as a revolving TL because...well it's an install TL not a revolver
That's like saying a chicken sandwich won't register as a hamburger, only a novice would even 'mention' that as a 'negative' against a SSL...it isn't meant to bounce revolving value, neither does an auto loan btw duh?

B) As mentioned, the 'why' or 'if' a potential credit building tactic would be of value is subject to WHERE one is starting from and the immediate goal.

Ex:
1) Sprucing up to mortgage qualify can be very different than a little-no credit builder needing total foundation and growth.

Adding one's 1st and only installer is of great value, when one has no over installer...meaning zero install accounts, which obviously would be distinct from revolving TLs, of which one might have 3-4 CC's already

But only a clueless banker would tell someone with only 3-4 CC accounts reporting that ALSO having a well managed installer appearing on said profile would be of zero value... especially if the install account was set up for paid down dramatically ( as in a $500 loan paid down to show a sub $50 balance) thus LOOKING like an installment loan where over 90% has been paid, with only about 10% of said debt load showing ( again 'open' and managed not closed and retired)

Only someone NOT understanding what constitutes RISK scoring per the FICO 'risk' scoring model would say such a thing = blind bank employees leading more blind clients into lifelong mis-understanding of how this stuff actually works...cost good people plenty of 💰 and unnecessary stress daily in America.

Situational awareness = not 'simple'
Easier to play Checkers, so most play Checkers and 'get by' but the real game is Chess😎
Message 36 of 50
New Visitor

Re: Anyone tried Self Lender and did it raise score?

@James If you're looking for beta testers for the mobile app, I would be interested. I have a one month old credit builder account with Self Lender.
Message 37 of 50
New Member

Re: Anyone tried Self Lender and did it raise score?

Vantage Scores are completely meaningless.

 

You might see a small boost if you have no installment loans currently, perhaps 15 points.

 

I like the idea of it- long-term a few years of positive payment history always helps.

 

Nothing unique about their service, other than you not needing $500 upfront to get the secured loan. Also, you can’t use the “loan”- the payments you make just go into the required $500 savings account. Interesting setup to force a person to save money.

Message 38 of 50
Valued Contributor

Re: Anyone tried Self Lender and did it raise score?

1) Vantage Scores are not USELESS...
The problem is people don't pay attention and do much learning for educational sake ( which obviously would serve folks better) generally places like CK clearly disclose that the 'Free' scores they share are for "educational" purposes.
Meaning...yes it's a 'store-brand', it's an alternative measure but it is a measure.
One where a person absolutely can gauge if their going in the correct direction but too often, short sighted folks run past being better educated for the 'bottom line' while staying ignorant of the big picture.

Point being, if a person learns how the manage their credit profile, how to master the 'what'...then ANY tool that helps them get there can't be 'useless'

Btw the SAG awards does give us a window into how the Oscars may go...just saying 😉
In all seriousness, as long as one understands that Vantage = store-brand/generic/SAG and
FICO = real Coke/Oscar it's all good
And, I mean no offense to the SAG awards, their nice but ppl only mention them during the SAG awards...but in 'real' life the props go to Oscar/Emmy/Tony/Grammy winners😎

2) Everybody knows I agree as to the non uniqueness of the SL offering and yes any Secured Loan product can have the positive of 'forced' savings ( something, I recommend btw, especially for young ppl as an outstanding exercise #= education # practice makes perfect) but the 'real' benefit IMO is these 'fake' loans ALLOW folks to manipulate the scoring model into adding positive TLs that frankly are NOT actually 'earned' in the trenches.

But hey it's a tool that is available and if one knows what they are doing it's an outstanding 'gift' that banks allow a person to puppet master with basically complete control an installer onto a credit profile...

The lending institution makes spit on those loans vs the hassle...it's a blessing that so many even allow the thing and the scoring model accepts it has a loan...

'Forced' savings is "cute" but the Steak of the situation is the DATA added to one's credit

Last thing many, many Americans NEED to be 'forced' to save a raggerty $500 as most can't come up with that amount in a mini emergency...per survey...which is sad AF and one of the real culprits and results of poor financial education
Message 39 of 50
New Contributor

Re: Anyone tried Self Lender and did it raise score?

Sorry if I missed this, but how exactly does self lender report? Does it report as an installment loan? Does it start reporting immediately, and if so, does it report installment debt of $500 minus whatever has been paid (to date) until the end of he loan at 12 months?

Frankly, I see a real benefit of this, having just opened an Alliant account with the hopes of taking out a SSL, and now they're gone. I don't need the hassle of "building a relationship" right now, I just want an installment loan on my reports.

2/18 FICO 8's:
EX(692): 3.1yrs, 8 inq.
TU(654): 0.3yrs, 3 inq.
EQ(683): 3.1yrs, 3 inq.
Utilization: 50%

Wall of Shame (recent denials/wish list):

Message 40 of 50