I just joined Self Lender

[Anonymous]

Always in the quest for positive trade lines! I'll keep you posted. And you get $10 for referring friends. 

[Anonymous]

I looked into these guys a while back. I came to the conclusion that it was basically a gimmick, but I could be wrong. I think someone mentioned them reporting as a consumer finance loan rather than a true installment loan - which is not generally helpful to your score. Don't know if thats true or not. It seems to me you can accomplish the exact same thing with a secured loan from a place like SDFCU, for about the same cost. For example - you do a 12 month 540$ loan through self lender, which would cost $45 plus $3 monthly 'credit monitoring' fee = 48x12= 576 dollars. A $540 loan through SDFCU, @ 6.99% would have payments of $48 and change. Bigger amount might make it worthwhile - sort of, but I can't see that being much of an advantage if you can afford bigger payment you could just toss that money in a savings account anyway.

Also I note it doesn't really tell you what happens if you default....on a loan you never really got, because its held in escrow.... Hmmmm. How exactly does that work?   

[Anonymous]

Anyway, if it works out let us know - how it reports, etc.

[Creditwiser]

I had a look at their website and FAQ's.  While of no use to me, I see nothing wrong wiith it. Like a sceured CU loan, you're basically paying yourself at a pre-determined date. At $3/month its seems like a decent deal. I would suspect that it definitely appeals to some that dont have a bank account and cash pay checks at check cashing places but it can still be useful to folks that are unable to get credit elsewhere.  There's no HP and if you keep your end of the agreement, you have your money back.  A way to save some money with reporting to all 3 CRA's.Regardless on exactly how they report the tradeline. If you stick to the terms, its positive reporting. I hope the OP shares his or her experience with it.

[Anonymous]

"Like a secured CU loan, you're basically paying yourself at a pre-determined date."

No, not really.... With a share secured loan, you get the use of the money up front.

This is more like a chrismas club style savings account that reports as a loan. 

[Creditwiser]

Yes, you're some-what  right. However I imagine there are many that dont have the money to secure in the first place so therfore you can have a similar result with no money to put up.  Also, I know there are many types of secured loans. I know this as In my case , with my CU, I have a secured loan for 2k. I do not get any of it until I have satisfied the loan.  I secured the 2k from my personal savings but it doesnt reflect in my savings balance as I pay it down. It shows the full 2k as my balance, but not as my AVAILABLE balance or even a pro rated amount.

This is very different to secured loans Ive had in the past with different CU's.  I have to say I was surprised by this but it doesnt matter, its serving the purpose and when Im done paying it, I'll have 2k more than I started with.

As for Self Lender, I believe its a good thing ( for some )  Especially those with no money to put up.

[Anonymous]

I read somewhere that the CRA'S not liking this self lending thing. Will try to fund where I read this.

[Anonymous]

"However I imagine there are many that dont have the money to secure in the first place"

In a situation like that (and I have been there) one solution is to take some money that would normally go towards a bill, and open a CU savings account with it. Then you do a share secured loan against the new account, and use the loan proceeds to pay the bill, and make your small monthly payments. At the end of the loan you have a small savings account and a installment loan payment history. Same result as the Self Lender loan - except, as someone else pointed out the Self Lender account reports as consumer finance loan instead of installment loan.

[moneystinks]

I was wondering how this is reporting on your credit report (i.e. does it say Self Lender?) and did it help bump up you scores any?