Secured Self Visa^® Credit Card Review

The Secured Self Visa^® Credit Card is best for consumers who need extra guidance while saving money and establishing or building credit with the help of a credit card.

Designed for those with poor credit, this secured card charges a modest annual fee and doesn’t require a hard credit check. However, you must have an open and active Credit Builder Account with Self and meet certain eligibility requirements — like making three monthly payments on time — before you can get the card.

We explain the pros and cons of the Secured Self Visa^® Credit Card, and show how it compares to similar secured cards, to help determine if it’s a good fit for you and your financial goals.

• No hard credit check required

  Unlike many traditional credit cards and secured cards, the Secured Self Visa^® Credit Card does not require a hard credit check to be approved. Instead, you must first open a credit builder loan, and Self will put your payments into a certificate of deposit at a partner bank.

  After you sign up for a Credit Builder Account and meet the following criteria, you’ll be eligible for the Secured Self Visa^® Credit Card:

  • • Make three monthly payments on time
    • Have $100 or more in savings progress
    • Have your account in good standing

  Note, once you finish paying off your credit builder loan, Self will send you your money back, minus any fees and interest.

• You control your credit limit

  While there is a $100 minimum, you are in control of how much credit you have available based on the amount of money you move from your Credit Builder Account to your Secured Self Visa^® Credit Card. As you make each monthly payment on your credit building account and keep your account in good standing, you may be eligible to increase your credit limit in multiples of $25 at a time — up to the maximum secured amount of $3,000.

• Reports to the three major credit bureaus

  When using a credit card to help establish or build credit, it’s best to choose one that reports your account and payment activity to the three major credit bureaus (Experian, Equifax and TransUnion), as the Secured Self Visa^® Credit Card does.

• Annual fee

  While the $25 annual fee isn’t a deal breaker, know that there may be additional fees associated with the Secured Self Visa^® Credit Card, including a late payment fee of up to $15, a returned payment fee of up to $15 and an expedited payment fee of $3.50 each time you use a debit card to pay your bill. To help avoid incurring these additional charges, you may want to set up automatic payments in the Self app.

• Must have a Self Credit Builder Account

  To get the Secured Self Visa^® Credit Card, you’ll need to have a Self credit builder loan. This is a reasonable first step, but it does mean that it could take several months until you’re eligible to have a Secured Self Visa^® Credit Card. Plus, this account comes with its own set of fees and interest rates that vary depending on which account type you choose.

• No rewards program

  The Secured Self Visa^® Credit Card doesn’t offer a sign-up bonus or rewards for the purchases you make using the card.

  That said, when trying to build credit, it’s best to focus on paying at least the minimum amount due on time each month, rather than racking up rewards.

Compare it to the Discover it^® Secured Credit Card

 

If you want to build credit with the help of a secured card that offers a simpler application process, as well as a rewards program and minimal fees, the Discover it^® Secured Credit Card is a good alternative.

Designed for individuals with limited / poor credit, this card requires a refundable security deposit ranging from $200 to $2,500, which will serve as your line of credit. And like the Secured Self Visa^® Credit Card, the Discover it^® Secured Credit Card reports your credit usage to the three major credit bureaus, so with responsible usage, it can help you establish or rebuild your credit over time. In fact, after seven months of use, Discover conducts monthly reviews on your account to consider upgrading you to an unsecured card and refund your deposit.

Additionally, the Discover it^® Secured Credit Card lets cardholders 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically Plus, Discover will match all the cash back you’ve earned at the end of your first year.

But while the Discover it^® Secured Credit Card comes with a $0 annual fee, beware that it charges a high 27.49% Variable APR on purchases if you carry a balance on your card from month to month. There is, however, a 10.99% Intro APR for 6 months on balance transfers — which is rare for a secured card. After the intro period ends, a 27.49% Variable APR applies.

Additionally, unlike the Secured Self Visa^® Credit Card, the Discover it^® Secured Credit Card can be used to make purchases outside of the U.S.

Due to the nature of the Secured Self Visa^® Credit Card being connected to the Self Credit Builder Account, and the financial requirements of the program, this card is best for someone who feels they have little self discipline when it comes to handling money. If you’re someone who has a difficult time saving money on your own, then having outside accountability may help you get on track and develop good financial habits.

But if you’re just looking to build credit with the help of a secured card, you may prefer one with a $0 annual fee and fewer requirements, like the Discover it^® Secured Credit Card.