If you need to build credit, but can’t get approved with a traditional credit card, the Self-Credit Builder Account with Secured Visa® Credit Card might be the answer you’re looking for. . This secured credit card is easy to get approved, provided you’re willing to make payments into a savings account in your name. After you accumulate at least $100 or more in savings, you can allocate some of your funds to your new credit limit and start using this secure card to build credit for the future.
To qualify for the self-secured Visa credit card, you will need to open a Credit Builder account with a company called Self first. You must also make at least three months of one-time payments to your dedicated savings account with at least $100 or more outstanding so far.
With all of these details in mind, it’s easy to ask 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 might want to consider a different plan for building credit.
When is the Self-Credit Builder account with secured Visa credit card worth it?
The Self-Securing Visa Credit Card will likely be worth it for you if any of the following scenarios apply:
Want to build credit with no credit check required
The self-secured Visa credit card is unique because it does not require credit verification like other credit cards. Because of this, approval is virtually guaranteed as long as you can meet the requirements for this account, such as making three payments on time and accumulating at least $100 in your Credit Builder account.
Self even reiterates this fact in its fine print for the card:
“You cannot be rejected or declined for the Builder Credit Card because there is no application process like other credit cards,” the lender writes.
You need time to save your security deposit
The best secured credit cards require you to provide a minimum security deposit of $200 to $300 to start building credit, but the Self-Securing Visa Credit Card lets you start saving on your security deposit before you make your request. This makes it ideal for people who need time to save their security deposit but want to do it in an organized and strategic way.
You want a Visa credit card for your purchases
The Self-Securing Visa Credit Card is a genuine 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 purchases as well as online purchases.
When is it not worth it?
Still can’t choose the self-secured Visa credit card? Here are a few situations where another credit-building product might help.
You want to pay no fees
The self-secured Visa credit card comes with an annual fee of $25 that is charged on your first credit card statement and again every 12 months, but there are plenty of secured credit cards that come with 0 $ unavoidable costs.
Also note that the variable APR on this card is incredibly high at 26.24%, so it’s a poor choice for holding a long-term balance.
You have the money saved for a traditional secured card
If you have $200 or more in accumulated savings in your own account, you can consider almost any other secured credit card on the market today. After all, the minimum security deposit is only $200 for popular secured cards like the Discover it® Secured Credit Card and the Capital One Quicksilver Cash Rewards Secured Credit Card.
You want a secure credit card that earns rewards
While the self-secured Visa credit card makes it easy to save your security deposit with monthly payments, the secured card itself offers no rewards. In contrast, many of the best secure cards offer up to 1.5% cash back for every dollar spent, such as the Quicksilver Secured.
Should you get the Self-Credit Builder account with a secured Visa credit card?
In most cases, the self-secured Visa credit card is best suited for people who want a secure credit card without having to go through a credit check, as well as those who want to save their security deposit over a period of time. of a few months. This card is also the one that will approve you regardless of past mistakes you have made with credit, even if you have bankruptcy on your credit report.
That said, people who want to build credit have many options, including the option of getting a secure card that earns rewards with no annual fee. With that in mind, you should only get the self-secured Visa credit card if you’ve taken the time to compare all of your available options.
The bottom line
Before choosing this card, we also suggest that you read our Self-Credit Builder Account Review with Secured Visa Credit Card.
In the meantime, you should compare other credit cards for bad credit as well as credit cards for no credit history. Once you’ve spent some time reviewing offers that suit your credit rating, you’ll be able to make an informed decision.