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Building credit can be a hassle if you’ve made plenty of past mistakes. Applying for credit cards can also be tough if you lack the appropriate credit score. Luckily, the Self-Secured Visa credit card can help cardholders build a strong credit card with excellent savings.
However, deciding whether to apply for this credit score isn’t as simple as having a damaged credit score. There are numerous other important factors to consider if you want to become a member.
As such, this Self – Credit Builder Account + Secured Visa review will dig down deep into the specifications, purpose, benefits, pros, and cons of becoming a cardholder.
Self-Secured Visa Credit Card: Specifications
There are three main considerations to consider when applying for this credit card, mainly: annual fees, APR, and introductory APR. Here are the specifications of each:
Annual Fee: There is a $25 monthly payment with a $9 administration free on a 24-month term.
Introductory APR: $0
Regular APR: 15.92% Variable
This credit card doesn’t offer any rewards or a welcome offer. There also isn’t a balance transfer introductory APR. Therefore, if you’re only looking to build your credit with some additional perks, you should give this option a second glance.
This option is one of the best credit cards to build credit. Therefore, if you’re working on applying for a credit card, searching for credit builder loans to improve your credit score, or want to consider self-reporting credit services, this option may warrant a deeper look.
Cardholders will be thrilled at the aspect of becoming eligible for the Secured visa card with no hard credit check or credit history required after making three months of on-time payments and having at least $100 into their savings account.
Now, this clearly means that it’s not true that this secured credit card is an instant approval credit card. Though, it’s still a great option if you can’t pay a large upfront deposit required for many traditional secured credit cards.
Fortunately, like other credit builder loans, applying for Self’s secured credit card may be the most efficient way to improve your credit score.
Self -Secured Visa Credit Card: No Welcome Offer
Granted, many secured credit cards don’t even provide a welcome offer. This option isn’t an exception, either.
While you can realistically receive a welcome offer and sign-on bonus for a few credit options, it shouldn’t be a priority if you’re trying to improve your credit score.
Self – Credit Builder Account + Secured Visa®: No Rewards
Unfortunately the Self Visa credit card does not offer any rewards, which is pretty common for credit card options targeting individuals trying to build their credit. Thus, choosing a secured credit card without a rewards program certainly isn’t a deal-breaker.
Self-Secured Visa Credit Card: Top Benefits
Naturally, you won’t receive many benefits from this credit card, other than the potential to improve your credit score drastically. Still, applying for the Self Visa credit card does have its advantages, which include:
Enhancing Your “Credit Mix”:
Enrollers of all Self credit builder products can enjoy the opportunity to improve their “credit mix”. This important factor makes up at least 10% of your FICO credit score.
It’s actually very difficult to manage if you don’t have any credit history. Diversifying your credit lines by applying for this credit card can help you build your credit much faster.
No Deposit Required:
The major benefit of the Self Visa credit card doesn’t require a security deposit, unlike other secured credit cards. Actually, the money you save in your savings account will serve as your security deposit and credit limit.
As a result, you’ll only be responsible for paying a $25 monthly payment in addition to a $9 administration fee with a 24-month term.
Standard Visa Card Benefits:
All Visa cards, this option included, offer these standard perks:
Lost or stolen reporting benefits
No liability for unauthorized purchases
Affordable roadside dispatch
Member inquiry service
Emergency cash disbursement and card replacement services
When you consider enrolling for the Self Visa credit card, it’s essential to realize that you’ll be paying rates for the credit card and the credit builder loan. The only way to avoid the 15.92% Variable interest rate is to not carry a balance.
However, you’ll still owe monthly finance and APR fees on your credit builder loan.
The Self Visa credit card certainly isn’t for everyone. If you want to endure a less-complicated credit building process without all the fees and benefit restrictions of this credit card, you’re better off browsing other options.
There is also the factor of having a high credit limit in order to gradually build credit. Other secured credit cards will naturally offer a high credit limit based on your security deposit.
A higher credit limit means that a responsible cardholder will use their credit card less and achieve a lower credit utilization ratio. Having a low credit utilization ratio can allow you to build credit more quickly.
This is all to say that the Self Visa credit card isn’t perfect. However, it’s the most useful credit builder option for those with damaged credit or no credit history at all. It’s low barrier of entry allows almost anyone to build or improve their credit score with at least three months of on-time payments and $100 in their savings account.
Self-Secured Visa Credit Card: Pros and Cons
Below, you’ll find the pros and cons associated with applying for the Self Visa credit card:
There isn’t any required security deposit of hard credit inquiry.
You can improve your credit mix.
This credit card reports to all three major credit bureaus.
This option provides standard visa credit card benefits.
It’s possible to owe interest on your credit builder loan and credit card at the same time.
There is a $25 monthly payment with a $9 administration fee on a 24-month term.
Self-Secured Visa Credit Card: The Final Verdict
The Self Visa credit card is beneficial for anyone that wants to build their credit. If you’re looking for additional benefits in addition to improving your credit score, you may want to look elsewhere.
However, with such a low barrier of entry, the Self Visa credit card more than makes up for its disadvantages.
Credit Shout is a community of personal finance experts dedicated to helping you save money and make smart financial decisions. Learn how to master your credit card rewards, improve your credit score and start eliminating your debt.