Self vs. Credit Strong: Which Credit Builder Is Right for You?

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If you have no credit, thin credit, or you’re rebuilding after a rough patch, a credit-builder account is one of the simplest ways to add positive history to your reports. Two of the best-known options are Self and Credit Strong. Both report to all three bureaus, and neither does a hard credit pull. They’re built for different people, though.

How credit-builder accounts work

A credit-builder account is a small installment loan in reverse. Instead of getting the money up front, the lender holds it in a locked savings account or CD. You make monthly payments, each on-time payment is reported to Equifax, Experian and TransUnion, and you get the savings back (minus interest and fees) at the end. Payment history is the biggest factor in your FICO score, so a steady stream of on-time payments can help a lot.

Self at a glance

• Monthly payments: plans from about $25 to $150 a month, most on 24-month terms
• Cost: interest plus a small fee. On a typical $35 plan, you pay about $840 over two years and get roughly $717 back.
• Credit check: no hard pull
• Extras: after some on-time payments and savings progress, you may qualify for the Self Visa secured card, which adds a revolving account to your reports. Self also offers rent and bill reporting.

Best for: people starting from zero, or anyone who wants a low monthly payment and a path to a first credit card.

Credit Strong at a glance

• Instal: a smaller installment account, about $28 a month over 48 months
• Revolv: a revolving credit line that reports like a credit card, starting around $15 a month
• Magnum: larger accounts ($1,000 to $25,000) on terms up to 120 months, starting around $16 a month
• Credit check: no hard pull, and you can cancel anytime

Best for: people who want a larger installment account on their reports, or a revolving line to help utilization. Magnum is popular with people preparing for a mortgage or business loan who want a bigger tradeline.

Self vs. Credit Strong: side by side

• Lower monthly payment: Credit Strong’s Revolv and Magnum can start lower. Self’s smallest plan is about $25.
• Shortest commitment: Self. Most plans run 24 months.
• Largest tradeline: Credit Strong Magnum.
• Path to a credit card: Self, through the Self Visa secured card.
• Revolving account: both, through Self Visa or Credit Strong Revolv.

Prices and terms change, so check each site for current plans before you sign up.

Which should you choose?

Pick Self if you’re brand new to credit, want a short commitment, and want to graduate to a credit card. Pick Credit Strong if you already have some credit and want a larger or longer account, or a revolving line, on your reports.

Whichever you choose, the rules are the same: never miss a payment (a late payment on a credit builder hurts just like any other late), and don’t open one right before you apply for a mortgage, because a new account can lower your average account age.

Make sure your reports are clean too

Building new history won’t help much if old errors are dragging your score down. Pull your reports and check them for mistakes (see the real problem with credit reports). Dovly can help dispute TransUnion errors, and SmartCredit will alert you as your new account starts reporting.

For more ways to raise your score, read 7 simple tips to boost your credit score. If a home purchase is your goal, The Rate Update can tell you what score you need and how long it may take to get there.

Affiliate disclosure: some links on this page are affiliate links, and we may earn a commission if you sign up, at no extra cost to you. Dan Frio | NMLS #246527 | PBT Bancorp | NMLS #257781. Mortgage products are originated by PBT Bancorp, NMLS #257781. Equal Housing Lender.