If an individual does not have any credit history or has credit that has been damaged, qualifying for a credit card or a loan can be a difficult procedure. Credit-build loans enable customers to build credit or rebuild their existing credit without spending any money upfront. Self Lender, also known as ‘Self,’ is an online lender that offers these services.
Through a Self Lender account, the amount borrowed does not come right away. Instead, the payments are held in a certificate of deposit. Once all the payments have been made, the money can be released.
Today, we will go over how Self Lender accounts work, information about canceling your account, and next steps. Credit services in Atlanta can help you navigate these procedures.
How Self Lender Accounts Work
Once a loan application has been approved, the loan amount will be deposited within a certificate of deposit with one of the partnering banks. This means that the individual will now be able to make regular payments throughout the time span of the loan in question. It is essential to understand Pay for Delete versus paid in full, as well.
Once all the loans have been made, access to the money—minus the finance charges—is provided.
Applying for a Self Lender Account
For someone to qualify, they must:
- Be eighteen years of age
- Are a permanent resident of the United States
- Have a Social Security Number
- Have a bank account or a debit card
When applying for a Self Lender account, individuals do not need money upfront in order to attain the loan, but they do need income to afford the monthly payments in question. They will pay the deposit upfront through a secured card. The money cannot be accessed on the deposit until the loan is paid off.
Understanding Fees and Closing Your Account
If a person decides to close their account before it is paid off, they can access all of the money within the certificate of deposit (CD) without the fees, the interest, and the amount still owed.
Self also offers two-year terms alongside four different monthly options for payments.
There are non-refundable administrative fees, and annual percentage rates (APRs) must not exceed a specific percentage.
Self loan fees and penalties exist. Specifically, payments fifteen days late or more can incur a fee of up to 5% of the scheduled monthly payment. Additionally, payments that are thirty days or more past their due date will get reported to the credit bureaus, and this will result in damage to a credit score.
If the account in question makes late payments, it will come to the point when it is closed, and the loan will be reported as defaulted. This can also damage a credit report.
Individuals will still get the loan deposit amount. However, they will lose the fees and amount owed when closing the account.
The Canceling Procedure Explained
There are multiple ways someone can cancel their Self account. They can navigate to the official website and log into their account, after which they can utilize the on-page tools to cancel it manually. Another option is to use the automated phone system. The phone number can be found on Self’s website.
If you call to cancel your account, there are a few steps you need to follow. You will be prompted to verify the account information manually, and once the system locates the account, you can choose option four to close the account. The account will be closed at 11:00 PM central standard time on the same day. A payout tracker will appear on the dashboard within twenty-four hours so you can check your payment status and know when to expect your money.
Preparing for the Future
Once canceled, anyone will still be able to access the money, but without the fees, interest, and the amount that is still owed.
Do you have more questions about rebuilding your credit? Are you curious about what information is not found on your credit report? Check out our latest posts for more details.