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Our Debt Free Family

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How to Buy Someone Else’s Debt

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how to buy someone else's debt
Becoming debt-free is usually the goal of most people visiting Our Debt Free Family. However, there are circumstances where you may need to know how to buy someone else’s debt. For instance, if a loved one fell on hard times and you wanted to help them get out of debt, you’ll need to know the steps to take to help them.

Why Would You Buy Debt?

The why behind buying someone else’s debt can be difficult. Sometimes people buy debt from others to make money. Lenders can earn money through interest on debts they pay for others. For example, if you purchase someone’s debt as a lender, they will be paying you the money back with interest. This can be risky though, especially if you don’t know the individual.

Another reason you may buy someone else’s debt is that they are someone you care for and they need help. Many people do this for people in their family, especially children or elderly parents. No one wants to watch their loved ones drown in debt. In this case, you can purchase their debt, or pay it off, but there may be no way to hold them accountable for paying you back (if desired).

How to Buy Someone Else’s Debt

 


So, how do you buy someone’s debt?
You can take responsibility for someone else’s debt through a variety of different channels. Depending on the type of debt involved, buying someone’s debt can be extremely easy.

  • Debts can be paid by pulling out a new loan and co-sign on it. To do this, you’ll just need to provide the information you would normally provide for a loan or credit card application. Then simply sign the loan or credit card agreement to “buy” the debt.
  • You can also use a credit card to pay off someone else’s debt. If you have good credit and can get a good interest rate, transfer the debt to your card to pay off.
  • Determine if the debt is old or new. Older debts may need you to be added to the account as a guarantor. Once you are added to the account, you can “buy” or pay off the person’s debts. To do this, you will need to contact the creditor directly.
  • For accounts in collections, you will need to contact the collection agency directly. You won’t be able to be added to the account but you will be able to make payment arrangements with the agency over the phone to pay the debt off.

Things to Consider Before Buying Someone Else’s Debt

Before you jump into buying someone else’s debt, there are a number of things to consider. Don’t forget that co-signing for someone’s ability to pay makes you responsible for paying when they cannot. This means that if your personal finances change you will still be held accountable for the debt you bought.

It is also important to remember helping others better their finances is best done through teaching and support. Simply buying someone’s debt helps them with their finances immediately but not in the long-run. Instead, consider helping them pay off their own debts and learn good saving habits.

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Why is No One Talking About Shopping Addiction and Bankruptcy?

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Shopping addiction and bankruptcy

There is no doubt that your finances can have a hefty toll on your mental health and vice versa. I have been talking to more people about their money for the blog and just to make talking about finance a norm with friends and family. While discussing personal finance with them, I’ve noticed something many people aren’t talking about: the correlation between shopping addiction and bankruptcy.

On an even broader note, many people don’t seem to notice the correlation between mental health and finance either. But don’t be fooled. Both addiction and mental health can have a profound impact on your financial situation and leave you stuck.

A Correlation Between Shopping Addiction and Bankruptcy?

I know a few individuals who have filed for bankruptcy. That is absolutely terrifying to me, but for many people who have filed, it doesn’t seem to phase them a bit. In fact, almost all of them have open, recurring debts for things they don’t really need. Programs like Afterpay and Klarna have only exacerbated this issue.

Even though they have filed for bankruptcy, which means they are holding much more debt than they could ever pay off for the foreseeable future. This has to be proven with documentation and, even then, you still may have to forfeit assets and pay off debts for another five years before they are erased.

However, filing for bankruptcy is doing nothing for the impulse control disorder that leads to compulsive shopping. For individuals with these control problems, bankruptcy offers them a clean slate to shop even more with new credit.

Are You a Shopping Addict?

While it is not formally recognized as a mental condition, shopping addiction is a real problem for many people. Luckily, it is manageable with therapy and direction from professionals. You may have a shopping addiction if any of the following applies to you…

  1. You spend a lot of time thinking about shopping and planning purchases. We aren’t talking about meal planning and budgeting here.
  2. It becomes evident that shopping interferes with other parts of your life (i.e. your financial future).
  3. Whoops! You go over your budget fairly often and rely on credit regularly.
  4. Your debt and finances as a whole are just entirely too complicated.
  5. There are secrets you keep about shopping.
  6. You have found that shopping gives you an almost euphoric high.

If you find yourself agreeing with more of these than not, you may want to seek help in getting your spending habits under control. You can also attend anonymous groups for addiction that allow you to connect with others who have gone through similar situations. Once you have a handle on how to change your habits, create a plan to move forward with paying off your debts.

This will ensure you break the cycle of shopping addiction and bankruptcy.

Mental Health and Personal Finance

Shopping addiction isn’t the only mental health issue impacting personal finance either. Addiction in general can have a wicked effect on a person’s finances. Additionally, mental health conditions, such as depression, anxiety, and cognitive disorders can also have a serious impact on the way you spend, save, and accrue debt.

In general, poor mental health can make it extremely difficult to manage and even earn money. Then, once you realize your finances are not in order, your anxiety about your money will just increase. Things can quickly start to seem overwhelming, even impossible.

Final Thoughts

All of these things can be helped, can be treated, and need to be talked about. The problem is, many people want to skate around the issues with bandaids or temporary fixes. That is why this week I’m asking why is no one talking about shopping addiction and bankruptcy?

Talk about money, debt, mental health, and hard issues with your close friends and family. Removing the stigma around these topics can help everyone heal and do better.

As always, if you or a loved one is suffering from substance abuse, addiction, or mental health issues, call the National Mental Health Hotline at 1-800-662-HELP (4357). They can help direct you to professionals that can better assist in dealing with the problem at hand. 

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How to Find Everything You Owe (And to Who)

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How to Find Everything You Owe

When you are reviewing your debt freedom progress, you are likely looking at how much you’ve paid off month-to-month. However, if you want the most accurate number (interest included), it is a good idea to know how to find everything you owe.

How to Find Everything You Owe

The first and best place to find everything you owe is your credit report. This will help you see both current and past debts you have yet to pay. You can get one free annual credit report each year and you should do so to get a picture of how much you owe and to who. Most loan companies and creditors report to the three main credit agencies (Experian, TransUnion, Equifax).

Another way to find out who you owe money to is taking a look at Credit Karma. The website and app will give you a snapshot of open and closed accounts with amounts. Credit Karma is not always as accurate as an annual credit report but it can be a good, free way to follow your progress and track your repayment efforts.

For specific accounts, many creditors have dashboards where you can see how much you owe, payment due dates, and other account information. Some credit cards will give you a forecast on how long it will take you to pay the account in full. If you’re wondering if this is something your loan provider offers, contact the company’s support services.

Why Having an Accurate Number is Important

So, why it is important to know how to find everything you owe?

Because it gives you an idea of where you stand and what moves you need to make next! For instance, looking at our credit report, we are able to identify what account needs to be next in our debt snowball.

Knowing how much you owe and to who is also important for tracking anything unusual. If someone used your social security number to take out a loan or credit card, you will know by keeping tabs on how much you owe.

In your debt freedom journey, it is extremely important to be able to find exactly how much you owe, how to locate interest rates, and know that those numbers are accurate. It could make or break your financial success!

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We Are Officially Credit Card Debt Free!

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credit card debt free

COVID-19 definitely put a damper on our family’s debt freedom journey (at first). However, my husband has since gotten a new job and we encountered some windfalls that have allowed us to pick up some of the slack and refocus on our debt-free goals. Now, (insert trumpets) we are credit card debt free!

Being Credit Card Debt Free

Prior to this, we had about $2,000 in total credit card debt. We only had about $500 left to pay off though. So, once we got a windfall, we paid off the last account balance of $498.21, and just like that, we are free of credit cards once and for all.

Honestly, it feels pretty weird! I know it will take of lot of dedication to continue being credit card free. Now, we are one step closer to financial freedom and the ability to put that money towards other debts.

What’s Next

And that is exactly what we have planned next!

Because we no longer have credit card debt to pay off, we are going to refocus that money on paying off the tool loans, the car loan, and student loans. To do this, we are going to focus on them in this order…

  • Tool loans – roughly $10,000 owed
  • Car loan – $19,216 owed
  • Student loans – $24,185 owed

Once these things are severely paid down, we will focus on paying off tax debt and getting any other financial needs situated. Now, you’re thinking, how long will this take?

I’m hopeful it will take us between two and three years to be debt-free. The plan is to add some additional funding to our emergency savings over the summer and then attack our debt full-on. Every extra penny we have will go towards paying off each of these accounts (in that order). Any windfalls, such as cash gifts, bonuses, and over time will also go towards debt repayment.

Once we are debt-free, we will be looking to buy a home. Initially, that will be more debt, but because we are going to be financially free, it will be easy to swiftly pay the house off. Being credit card debt free has us both optimistic and thinking about our debt-free future! Readers, how did you feel after paying off all of your credit card debt? 

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Does Afterpay Help Your Credit?

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does afterpay help your credit

Over 220 million Americans shop online every year. Because of this, digital wallets and virtual ways to pay have increased in popularity. Programs like Afterpay even allow you to make payments on your online purchases. But does Afterpay help your credit?

What is Afterpay?

If you haven’t already encountered Afterpay at checkout, it is a payment option that allows you to pay for your online purchase in four equal installments. Payments come out every two weeks, which works well for many people on a bi-weekly pay schedule.

All you have to do to use it is choose “Afterpay” at checkout. Link your Afterpay account to a U.S.-issued credit or debit card where they can process future payments. Then, you are ready to go!

Afterpay does limit the amount you are able to finance at first, but they increase it over time after seeing your ability to pay it back. It is also important to note that not everyone will be approved for Afterpay or the full amount you may need. It all depends on your repayment history.

Where Can You Use Afterpay?

Afterpay can be used at more than 25,000 online retailers. Anywhere you spend $35 or more and see the Afterpay option at checkout, you can use it. Some of the bigger names offering Afterpay include Jeffree Star Cosmetics, Shein, Armani, Ray-Ban, Carhartt, Bare Minerals, and more.

You can visit the Afterpay website to see a full list of retailers they work with.

Does Afterpay Help Your Credit?

Unfortunately, making on-time payments with Afterpay does not help your credit. The company doesn’t pull your credit to approve you for payments either. When you successfully pay off an Afterpay loan you get a kind of “in-house credit” and Afterpay will agree to lend you more in the future.

Customers who are unable to pay their bill on time are hit with an $8 fee the day after the bill’s due date. Then you accrue an $8 fee for every seven days the bill goes unpaid. Although Afterpay doesn’t technically charge interest, these late fees can stack up quickly.

Thoughts About Programs Like Afterpay

If you are making all the payments on time, Afterpay can be a good interest-free alternative to a credit card. However, it is important to remember that your debt freedom journey has a lot to do with reforming your behavior. Continuing to buy things with payment installments may put you back into a debt mindset (and you definitely don’t want that).

Anyone choosing to use Afterpay should be sure they can pay all four payments. Otherwise, it will be in your best interest to just save the money for the purchase instead.

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What are Bad Credit Loans?

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Bad credit

Bad credit

Whenever people are unable to finance a certain project, they refer to the banks and online lenders for a credit loan. Online lenders are more famous for handing out smaller amounts of personal loans, while the banks deal with much bigger numbers. People often apply for these loans when they buy an apartment, car, or when they send their kid to college. Whatever the reason may be, the bottom line is that they don’t have the finances required at the moment.

Of course, not all credit loans are approved. The lenders do a background search on each client to see his or her credit score, their history with paying them off, and whether they caused any trouble. If a potential client has a low credit score, then the chances of being approved are low. Luckily, there is an alternative for those people and it goes by the name of bad credit loans. Although the name might not be the catchiest, it allows many to apply for a credit loan, even though they don’t have the best credit score.

We wanted to introduce you to this type of credit and that’s why we are willing to dig a bit deeper and give you an overview.

The Difference Between Bad and Regular Credit Loans

As you may have figured it out by now, people who apply for bad credit loans are seen as risky borrowers. That is why you may be faced with more interest rates and higher fees, which is not the case with regular loans. The only mutual thing that these two types of credit have is the application process.

The lenders check your credit history, your financial status, and with that information, they decide whether you’ll be eligible to repay them. If you are looking to read the tiniest details, like the credit score categories, best lenders, as well as guides to get a better loan, head over to bestloansforbadcredit.com – they have everything that you need to know.

Are Scams Possible?

The Internet opened up many possibilities for us. Unfortunately, not every outcome can be positive. Scams are happening much more often than they should since many people see the Internet as the best place to rob people of their money. So, to answer your question, yes – scams with bad credit loans are possible.

But, if you follow a couple of simple steps, you will be safe. First off, if the lender is asking you to register in a different state, rather than you home state, then the chances are that you are contacting a scammer. Guarantees without approval, lack of communication skills, and advertising methods are also some factors.

Extra precautions are always welcomed, especially if your financial status is not the best. On a side note, we wanted to mention that if you are struggling to pay off your debt, there are a few side jobs which can be helpful and provide you with a good income.

Types of Bad Credit Loans

Lastly, we wanted to cover some of the bad credit loans. There are 4 types in this section: instalment loans, payday loans, cash advances, and bank agreements. Payday loans and cash advances are the easiest to get, since they are considered short-term loans, but they have greater interest rates.

The bigger interest rates and more detailed background checks that we are witnessing today, especially when dealing with banks, are the result from the 2008 world crisis when the banks around the world were handing out loans without having a plan of action.

For more great articles, read these:

Yes, You Can Buy Someone Else’s Debt

The Best YouTube Channels

The Effects of Financial Stress On Marriage

Image Source: Cafe Credit.

What To Do If Debt Is Accrued By Identity Theft

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What To Do If Debt Is Accrued By Identity Theft

It is recommended you check your credit score at least once a year. However, those of us on debt freedom journies may check it more often. What happens when you look at your report and find something you don’t recognize? What if there is a debt on your report you didn’t authorize? Here’s what to do if debt is accrued by identity theft.

What To Do If Debt Is Accrued By Identity Theft

You’ve noticed something out of the ordinary on your credit report. First thing’s first, breathe. You will want to keep a level head and get all of the information on how to move forward clearly. Identity theft could cost countless dollars if not handled correctly, so you want to be sure to do it right.

File an identity theft report with the Federal Trade Commission (FTC). Next, you’ll want to place a minimum of a one-year (up to seven years) fraud alert on your credit report. This way, you’ll be alerted to any and all activity on your behalf.

Here is what you can expect when communicating with FTC officials about your identity theft. Take a look at the link and be sure to be prepared with the documents and information they need. When you talk to them, inquire about getting free credit reports. They can assist you with getting more than the guaranteed one-per-year.

Once you’ve reported the activity and moved forward with monitoring your credit, take the steps necessary to remove incorrect information. If needed, dispute the fraudulent accounts and request that creditors stop reporting them. To do this, send copies of proof of identity theft, which you will receive from the FTC.

If a debt collector is harassing you during this time, you also have the right to block them from contacting you (if all else fails).

Credit Monitoring Best Practices

Of course, you want to avoid identity theft altogether, if possible. It is a good idea to employ some credit monitoring best practices. For instance, services like Credit Karma and many credit card companies offer free credit monitoring. Many will also alert you if there has been a change. Sign up for alerts so you can be aware if there is anything abnormal taking place.

Additionally, it is always important to stay on top of what kind of scams are circulating at the time. Don’t fall victim to schemes aiming to destroy your credit and finances by being uneducated about them.

Lastly, if you do find anything out of the ordinary on your credit report, call the company right away and discuss what your next steps should be. The sooner you take action against identity theft, the better.

Readers, do you have any identity theft nightmare stories you’d like to share? Comment below! I’d love to feature you on the blog. 

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Why You Should Look at Motor Finance Alternatives

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As a driver, there will come a time where you’ll be looking at changing your vehicle for a newer one. Whether that’s because your current vehicle has become a bottomless pit of repair and running costs, or you’re starting a family a need something bigger than your current model. Unless you have the savings to cover it, it’s more than likely you’ll be looking at financial help to make this purchase easier. But where to begin? It can be difficult knowing which is the best option for you with so many different types of finance available. Here are some pointers to help guide you and why the alternatives may be better.

Older Vehicles Provide Better Deals

With a new year means many great deals on vehicles available. It was reported that 27% of all vehicles sold in October 2019 where brand new 2020 models, meaning many more people went for slightly older plates. This is because of the large drop in prices seen on models between 1-3 years old, even if they have low mileage. You should be able to take advantage of the dealerships wanting to make room for newer cars by moving on their current older stock. Based on that statistic, many people seem to agree. But to truly make the best of reduced costs on a nearly new vehicle, you need to choose your finance options carefully.

Higher Purchase Agreements or a Direct Lender Loan?

It can be easy to find understanding the various details of higher purchase motor finance agreements a little confusing. After all, they come with many different terms that you need to stick to avoid any extra charges. For example, if you were looking to lease a car, this will come with various details such as limited mileage to stay within or condition when giving the car back. For this reason, you could end up agreeing to pay a monthly amount that could end up being much more. Opting to purchase a car outright has far been the cheapest option for many years, as you’ll only pay the value of the car. Easy if you have the savings available, so how can you still do this without having the available funds? Fortunately, there are various alternative motor finance options available that will help.

There are many lenders who are willing to provide low-interest car loans that will provide you with the interest charge upfront and combine it with a flexible repayment length for low monthly repayments. This way you can avoid the dealerships and pay them outright, leaving you to pay a manageable, low rate loan instead. This also means you’ll own the vehicle, meaning you can decide to sell or keep it for as long as you want.

Credit Card

This one will depend on how great a rate you can get on a credit card. Otherwise, you could end up paying a lot more in interest than with any other option available. Credit cards are great for flexible lending, only using when you need it. But if they are not managed well, they can rack up high-interest charges and can quickly create an expensive debt. If you’re thinking of using a credit card, it’s worth looking for 0% interest-free deals that will mean you can, for a period, pay no interest on the amount you spend. The trick is to remember to move the balance to another credit card before the 0% period finishes, with ideally the new credit card having the same promotion.
The great thing about this is you can continue to do this for as long as you have the debt to pay. The only stumbling block would be your credit rating, as you’ll need to maintain the monthly payments to ensure this doesn’t drop and you can’t get approved for another credit card. If done successfully, you could pay no interest at all on your vehicle amount, apart from a balance transfer fee each time you move the funds.

Peer to Peer

This one is much less used than a loan or higher purchase agreement but can work out to be a great money-saving option. Peer to peer lending involves borrowing from other people who are willing to lend to you. This means not borrowing from a bank or car dealer or other direct lender company. Instead, you would go into an agreement with someone just like you; your peers! Now what differs this from just borrowing money from friends or family is that it is done through a peer to peer platform. By using it, you’ll be matched with other people willing to lend the money you require and will still need to undergo a credit check. Interest rates can be much lower, but this will depend on how good your credit rating currently is.

Read the Terms Carefully

Whichever option you choose to go forward with for motor finance should be carefully considered. Not all options will work for everyone and nearly all will require you to have a good level of credit. You should only enter into an agreement you can afford to maintain. This way, you can focus on enjoying your new vehicle, rather than worrying about how to pay for it and how much interest you’re paying back.

For more of our great articles, read these:

Yes, You Can Buy Someone else’s Debt

Here Are Some Handy Debt Free Charts

What Kind of Interest Will You Have On A $60,000 Loan?

The Complete Guide To Getting Out of Debt

 

Image source: GotCredit, via Flickr.

What Are Tribal Installment Loans?

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Tribal installment loans

Occasionally, we take a look at different types of predatory lending to avoid on the blog. In the past, I’ve discussed guaranteed loans and payday loans. While these types of lending can wreck your finances, I think it is important to talk about because many of us looking to pay off debt also have bad credit, which makes us susceptible to predatory lenders.

If you’re looking for a bad credit loan to help you get through a hard time, you may stumble across tribal installment loans. Here’s what you need to know about this type of lending and alternatives to consider.

What Are Tribal Installment Loans?

Tribal installment loans are alternatives to payday loans. The difference is that tribal loans are only available through Native American tribes in the United States. Most tribal lenders are represented by the Native American Financial Services Association (NAFSA). This allows tribes to offer online loans.

Surprisingly, many of programs within the Native American community are paid for with these types of loans, including health care, housing, and youth programs. These types of loans are available to individuals within the tribe as well as non-tribal borrowers. In states where payday lending is illegal, tribal lenders are able to lend borrowers money.

Tribal lenders can lend money to tribal and non-tribal borrowers, and they can even lend money to customers in states where payday lending is normally illegal. While many are legitimate and fair lenders, keep in mind that because they are a sovereign instrumentality, they cannot be sued.

Do They Require Good Credit?

Most tribal lenders do not require good credit. In many cases, they simply require verification that you make $1,000 or more every month after taxes. You won’t be able to get more than $2,500 most of the time though and many lenders will only provide loan terms up to six months.

Should You Get a Tribal Loan?

As mentioned above, most tribal lenders offer loans with ridiculously high APRs. If you plan on getting a tribal installment loan, you should have an aggressive repayment plan. Otherwise, you may wind up paying thousands of dollars in interest and additional fees.

Like with any type of loan or debt you take out, you should always read the fine print. Be sure you are aware of all of the loan terms. Many tribal loans have strict repayment terms.

Tribal Loan Controversy

Most Indian tribes have the resources to be able to fund their own lending business. Many of them are also members of the Online Lenders Alliance (OLA). This typically provides some kind of confidence with borrowers, however, some tribes have been known to practice irresponsible lending to increase profits.

It is also worth noting that some tribal lenders partner with third parties. If that is the case, both the tribe and the third party will collect a portion of the interest charges. In some cases, this increases the interest you pay.

Another thing that is important to keep in mind that because tribal lenders are sovereign they cannot be sued in the event there is some wrongdoing. Additionally, some tribal lenders have been known to charge up to 795 percent APR.

Alternatives to Tribal Installment Loans

When it boils down to it, tribal loans are still high-interest loan options that will not help you further your debt freedom journey. Instead of pulling out a tribal installment loan, consider one of these alternatives.

  • Local resources: If you are having some type of short-term financial issue, look for local resources. The food bank can assist with groceries. You may also have a community program that helps pay utilities or even help you get back on your feet.
  • Payment extensions: Instead of pulling out a loan to cover your current payments, consider making a payment arrangement. This can free up some immediate cash.
  • Side gigs: Maybe consider getting a part-time job or side gig to help with the extra cash you need. Increasing your cash flow is one of the best ways to solve your financial troubles without going into debt.
  • Sell a few things: You can flip things on the Facebook Marketplace by cleaning out the closest at home. There are probably a number of things you don’t use lying around. Consider selling them for the extra cash you need.
  • Trim your budget: See if there are any of your expenses you can trim or cut completely. Look at your subscriptions and memberships, ways to cut your utilities, among other things that may save you some money.
  • Borrow from family: Before borrowing, if you are comfortable doing so, ask a friend or family member for help. Most of the time, family members and friends aren’t aware of your financial situation because it isn’t something that is talked about. Explaining your situation and asking for help could prevent you from going into debt.

Before taking out any type of loan, be sure to do your research and make sure it is the right financial decision. Nine times out of 10, taking out a loan won’t further your debt freedom journey. It will only hinder it. Consider your alternatives, interest rates, and other factors before going all in.

Readers, have you heard of tribal installment loans before? Have you ever considered getting one?

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Self Lender Reviews: Building Credit With a Loan

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Self Lender reviews

Self-lending via credit builder loans has typically been something that small community banks and credit unions handle. However, with the increasing use of the internet to lend and borrow, Fintech startups such as Texas-based Self Lender are increasingly moving into the credit building loan market. So, what are Self Lender reviews saying? And is this the right option for you?

About Self Lender, Inc.

Self Lender, Inc. is a new venture capital funded startup that focuses on helping individuals build credit while saving instead of racking up debt. They’ve been able to leverage modern FinTech to come up with a solution to every debt-free family’s conundrum: pay off debt or build credit.

Incidentally, you may be thinking you don’t need a loan, and you’d be right, but there are still plenty of instances in which you’ll need a good credit score. For example, some jobs require good credit scores. Bad credit can make borrowing a lot more expensive. Credit builder loans are a bit unusual, but they work.

How Does Self Lender Work?

You’re probably thinking, “I’ve never heard of a credit building account before.” However, credit building loans have been available through traditional banks and financial institutions for years. They’re often called “CD-secured loans” or “savings-secured loans,” since they’re secured by a Certificate of Deposit (CD)

By opening a Credit Building Account with Self Lender, you are committing to putting a certain amount of money into the account each month. Think of it as a savings account.

You choose from the options available and then make the agreed-upon payments each month. Then commit to a term. Self Lender deposits the amount of the loan into a CD for you. Then you make payments for a specific amount of time. After the term is over, you can cash out the CD and either spend it or transfer it to a different type of savings account.

There is no hard credit pull to get started, so signing up won’t impact your credit score at all. And, you don’t have to have credit to get started either. You simply sign up, choose your payment plan and go.

Where payment plans are concerned, Self Lender works with your budget and reports your payments to all three credit bureaus. So, for every on-time payment, you make toward the account, the more your credit will improve.

Getting Started

self lender reviews

Signing up for Self Lender is easy. Go to www.selflender.com and choose “sign up.” From there, you’ll be prompted to enter your name and email. The site will then guide you through the account setup. You’ll need the following information handy:

• Home address
• Social security number
• Birthdate

To get started, you’ll have to pay a non-refundable admin fee between a $9 to $15 depending on the payment terms you choose. Then, you will choose a payment plan that works for you. The site offers plans with monthly payments starting at $25 and up to $150.*** Then you select a term length of 12 to 24 months. At the end of the term, you’ll get the cash you put in. For instance, a $25 contribution for 24 months will result in a $525 payout at a 14.92% APR. Or, you can put in $89 for 12 months at a 14.62% APR and receive $1,000 in savings at the end of your term.

The loans aren’t free. Self Lender charges a processing fee, and, of course, the payment structure includes interest. That said, Self Lender doesn’t charge more than 16%, which is better than alternatives like prepaid or secured credit cards, which might charge as much as 30% interest.

As a side bonus, Self Lender lets you check your credit at no cost.

While there are no guaranteed results, Self Lender reviews have shown the services are effective.

Ready to start building your credit? Apply at Self Lender today!

Self Lender Reviews

Self Lender reviews are generally favorable. On average, users have seen an increase of 45 points during the term agreement with Self Lender. Here are some other Self Lender reviews to give you an idea of how it has worked for other consumers.

“Love love love this program and this app! In eight months my credit went up a hundred and nine points. Super happy and can’t wait to renew once the first year is up.” – Debbie G.

“I recently moved to the states and had no established credit. Using this service along with two prepaid credit cards, my score went from 4 – 710 in 9 months. I took a 12 month term with only $50 payment per month but I’m already thinking about applying for a larger Self Lender loan as soon as this completes to further build my score and save at the same time.” – Neil M.

“Self Lender has been a fabulous service for me, as I have started building my credit history. I jumped 30 points over the period of my account, and I just got my savings I built deposited into my bank account! I’ve already signed up for second account, because it’s guaranteed saving that boosts your credit score! Thank you for making it easier for millennials without established history to become more creditworthy!” – Evan M.

“This really works…and pretty quick, too!! Score jumped 118 points in 4 months.
I’m using Self Lender to build credit and save money.” – Cynthia C.

So, now there is only one question left to answer: is Self Lender the right option for you?

Is Self Lender the Answer to Your Credit Troubles?

Self Lender reviews also suggest the product isn’t necessarily a silver bullet. The product has the potential to improve your credit substantially, but everyone’s credit is different. The figures published by Self Lender just show average improvement in one’s credit. Some people have seen a lot of improvement in their credit; some show more modest gains. It is also not exactly clear when the credit improvements kick in. In some cases, the benefits are immediate. In other cases, it takes more time to see the gains.

So, on average Self Lender reviews do show the product works, but it’s not clear if it works equally well for everyone and when its benefits kick in.

Also, one important requirement is that for Self Lender credit builder loans to effectively improve your credit you need to have a stable income, and you need to have a long-term planning mentality. So, if you’re not able to secure steady employment or aren’t ready to think in a one or two-year time frame, Self Lender is probably not the answer.

Other important factors to consider are frankly, your personality. Some people do better with an enforced way to improve their credit. If you treat your savings plan like a credit card payment, you may be able to save more money than you think. However, if you prefer a more independent and flexible approach to your personal finances, their credit builder loans might not be the optimal option for you.

If you are interested in learning more about Self Lender, apply here.

1 Credit Builder Account — proceeds are held in a deposit account until maturity
All Credit Builder Accounts made by Lead Bank, Member FDIC, Equal Housing Lender, Sunrise Banks, N.A. Member FDIC, Equal Housing Lender or Atlantic Capital Bank, N.A. Member FDIC, Equal Housing Lender.
*Subject to ID Verification.
**Individual borrowers must be a U.S. Citizen or permanent resident and at least 18 years old. Valid bank account and Social Security Number are required.
***Sample products are $25 monthly loan payment at a $525 loan amount with a $9 administration fee, 24 month term and 14.92% Annual Percentage Rate; $48 monthly loan payment at a $545 loan amount with a $15 administration fee, 12 month term and 15.65% Annual Percentage Rate.
All loans are subject to consumer report review and approval. Results are not guaranteed. Improvement in your credit score is dependent on your specific situation and financial behavior. Failure to make monthly minimum payments by the payment due date each month may result in delinquent payment reporting to credit bureaus which may negatively impact your credit score. This product will not remove negative credit history from your credit report.
All loans subject to approval. All Certificates of Deposit (CD) are deposited in Lead Banks, Member FDIC, Sunrise Banks, N.A., Member FDIC or Atlantic Capital Bank, N.A., Member FDIC.

We are an affiliate of Self Lender. Although this posting contains affiliate links, the review and opinions expressed below are my own.