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Anyone tried Self Lender and did it raise score?

Established Contributor

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


james_at_selflender wrote:
So, unfortunately I don’t have any data that supports the claim that “a person with an installment loan won’t get benefit from a new installment loan.”

We know on average re: credit score improvement of our customers, but we don’t know the answer to your question.

Nice honest answer.

Message 11 of 58
Regular Contributor

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

I forgot to add one thing. It is unclear if the the big credit score increases they advertise are Vantage or Fico. It may make a significant difference in score increase reaped as we now that Vantage can be wildly different than Fico scores. Because 90% of lenders still use Fico it makes a difference as to which one they are counting the gains against. Either way it is a positive tradeline that you pay little for and get money back at the end. Im just saying that the advertised gains are a YMMV situation and if it tested against vantage as opposed to fico, the gains may not be as impressive.

 

Update on the payout is a check mailed 10-14 days after the close of the loan. You must select it under the my builder account tab. I Do recommend them as a credit builder loan!



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Message 12 of 58
Community Leader
Super Contributor

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

Hello all.  Just a reminder to folks reading the thread.  We are big supporters of people adding an installment loan when a person has no current open loans.  It's a great idea.  But overwhelmingly we feel that the best approach is to use the Share Secure Loan Technique..  Key advantages:

 

*  The interest paid each year is extremely small: $1-2.  That's less than typical credit builder loan approaches.

 

*  The loan stays open for a full 5 years.  Loans that close (e.g. after 12 months) lose most of their scoring benefit.

 

*  There is no hard pull for the loan.

 

*  The borrower gets almost all of his security deposit back in the first 30 days.

Message 13 of 58
Super Contributor

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

I actually can't think of any advantages of a self lender/builder loan over the SSL to be honest.
Message 14 of 58

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

Advantages of using self lender over SSL:

1) 100% online and no trip needed to the local credit union

2) you don’t have to come up with the security deposit that goes into the SSL.

3) our underwriting requirements are significantly more lax than most banks and CUs. Most banks use chexsystems — and will deny you for a savings or checking account based upon if you owe money to another financial institution (as reported to Chexsystems).

That’s really it. Both accomplish the same goal. The SSL is going to be a little bit cheaper. Pros and cons to both.
CEO and co-founder @ self lender
Message 15 of 58
Community Leader
Super Contributor

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


james_at_selflender wrote:
Advantages of using self lender over SSL:

1) 100% online and no trip needed to the local credit union

2) you don’t have to come up with the security deposit that goes into the SSL.

3) our underwriting requirements are significantly more lax than most banks and CUs. Most banks use chexsystems — and will deny you for a savings or checking account based upon if you owe money to another financial institution (as reported to Chexsystems).

That’s really it. Both accomplish the same goal. The SSL is going to be a little bit cheaper. Pros and cons to both.

Hi James!  Thanks for the feedback.

 

As far as #1 goes, our proposed SSL solution is 100% online too.  Just as an FYI.

 

You make solid points regarding #2 and #3.  If a person lacks the $500 for the security deposit, or if he has derogs on his ChexSytems report, then your approach is probably the one he should take.

 

Best wishes and welcome to the forums...

Message 16 of 58
Member

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

Thanks James. Does self-lender report to all three credit reporting agencies?

Message 17 of 58

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

Yes, it reports to all three
CEO and co-founder @ self lender
Message 18 of 58
Valued Contributor

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


james_at_selflender wrote:
Appreciate the feedback! We’re building a mobile app right now and revamping the dashboard.

Additionally, by the end of the year, we’ll have two options to send money: ACH back to you or paper check. As of today, it’s only check.

Like the idea of ACH'ing it into a CU with a decent savings account rate or rolling it into a CD..... Hmm might be good for folks to roll it into an Alliant account and put some of it towards a SSL if they dont have another installment loan type product already =)

 

 

Message 19 of 58
Valued Contributor

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


james_at_selflender wrote:
Advantages of using self lender over SSL:

1) 100% online and no trip needed to the local credit union
(neutral - the myFICO preferred option can be done entirely online though its takes a few days to establish the loan. Also No HP for the SSL)

2) you don’t have to come up with the security deposit that goes into the SSL.
(positive- this can be a benifit for some folks but if you do the SSL correctly you get most of it back in a short period of time)

3) our underwriting requirements are significantly more lax than most banks and CUs. Most banks use chexsystems — and will deny you for a savings or checking account based upon if you owe money to another financial institution (as reported to Chexsystems).
(positive if your chexsystems dirty or have adverse data on chex.. this can be a definite pro to going with SelfLender)

4. Cost.. 
(neutral to con...) Most folks realize you have to pay to play... esp when rebuilding.. SL does have a slightly higher entry cost/fee over the course but its clearly spelled out.. 

That’s really it. Both accomplish the same goal. The SSL is going to be a little bit cheaper. Pros and cons to both.

One thing that hasnt been stated is that there may be slight advantages to a larger loan amt.. Not for FICO scoring purposes but for other lenders UW....

there may be cases when folks can benefit from a larger SSL or Selflender loan... Hint of truth that higher limits beget higher limits esp with thinner files and manual or semi-manual underwriting for CCs and loans... but is it worth the fee over the 500$ Selflender loan... this is a more difficult decision..  Know some folks have gotten the larger alliant loans to some effect.....

 

Know its a petty thing but in general i didnt think highly of the SelfLender as an option.. Know its cosmetic but when seeing the older site it looked kinda skeezy at first.. 

Between these posts and the redesign.. I tend to have a bit more faith in the company than before....

 

-J

 

Message 20 of 58