Self Lender - Seems legit for building credit and savings

[Anonymous]

After some research and also seeing them on Tech Crunch, I decided to sign up to see what I would be getting myself into.  So here are the specs.

$98 a month for 12 months.  There is actually no loan given to you.  They deposit $1100 into a CD with a 12 month maturity on your behalf.  You then make your 12 monthly payments that get reported to all three CRAs.  The line shows up as an installment loan.  Once you are complete, they mail you a check back for the same $1100 but they keep the extra $75 in interest you paid through your payment.  The interest is 12.59%.  Not bad for an unsecured loan.

Seems like a fool proof way to build some credit and get some savings together.  The only catch I could find is you can only do this individually, not joint.  So we signed up my wife for this too, but thats a completely separate account and $98 a month.  I took some screen caps of the loan screen to share with you all, but cant figure out how to attach a pic to this thread.  Anyway, check it out.  Lots of good reviews out there on them.

https://www.selflender.com/

[Anonymous]

Heres a good article from TechCrunch about them..

http://techcrunch.com/2015/07/10/self-lender-raises-1-5m-to-help-americans-establish-credit/

[Anonymous]

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@Anonymous wrote:

After some research and also seeing them on Tech Crunch, I decided to sign up to see what I would be getting myself into.  So here are the specs.

$98 a month for 12 months.  There is actually no loan given to you.  They deposit $1100 into a CD with a 12 month maturity on your behalf.  You then make your 12 monthly payments that get reported to all three CRAs.  The line shows up as an installment loan.  Once you are complete, they mail you a check back for the same $1100 but they keep the extra $75 in interest you paid through your payment.  The interest is 12.59%.  Not bad for an unsecured loan.

Seems like a fool proof way to build some credit and get some savings together.  The only catch I could find is you can only do this individually, not joint.  So we signed up my wife for this too, but thats a completely separate account and $98 a month.  I took some screen caps of the loan screen to share with you all, but cant figure out how to attach a pic to this thread.  Anyway, check it out.  Lots of good reviews out there on them.

https://www.selflender.com/

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A secured loan from SDFCU is only 3.99%. Sure, you have to front the money - but you essentially get it back within a few days. If you can't afford to delay spending your paycheck for 3-4 days, then lack of credit is the least of your problems.

I've read about Selflender before and IMHO, its a solution in search of a problem.

[Anonymous]

Please explain more about this 3-4 days thing. What is it?

[devinlebron]

Hello NormanFH....soundz VERY interesting in reference to SDFCU.I could benefit from the addition of an installment loan to my reports however how would i obtain loan & secured card with the same funds?? (u stated essentially itz doable in 3-4 days)

[Anonymous]

I just started my self lender "credit builder" loan. I read up on it and it looks like an okay deal. I'll report back once they start reporting and at the end of the 12 months with an update.

[Anonymous]

The SDFCU deal works like this. You deposit 500 in a savings account and get a secured loan against it. Then you take the 500 loan and put it towards a 500 secured credit card. Takes a few days to get everything set up

[devinlebron]

Sweet deal .......thanx a million

[Anonymous]

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@Anonymous wrote:
I just started my self lender "credit builder" loan. I read up on it and it looks like an okay deal. I'll report back once they start reporting and at the end of the 12 months with an update.

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Any news on how it went for you?

[Anonymous]

@jayalove
No worries... these secured loans have been around for 20 years, they do what they do
You pay, they report, period that's really the end of the story, there isn't much to it.

IMO Self-Lender really isn't needed at all because a million CUs both national and local will suffice in doing the same thing, all Self-Lender did was become a start up that added a little Marketing behind a gimmick that's been around forever.

As mentioned, anybody can go to most any CU with $500 from Friday's paycheck put it in a savings account and turn around and borrow back the $500 and Bam you've got a $500 loan on your credit report, generally cheaper than what Self-Lender is charging and you are building a relationship with an established CU/lender that you may do business with later

IMO that makes more sense, the same lender may later be the same lender that issues CC, car loans or a mortgage
Hope that helps
Good Luck