What To Do When You Finished Your Self Credit Builder

Building credit takes time, patience, and consistency. If you’ve reached the end of your Self Credit Builder loan, that’s an accomplishment to celebrate. You committed to improving your financial future and followed through. But as your loan wraps up, it’s time to start thinking about your next steps.

Maybe you’re excited to receive your payout. You might also be wondering if you should start another Self Credit Builder account. Whatever your next move, understanding your options can help you keep the momentum going and make sure you continue building credit long after your account closes.

Here’s a look at what happens when your Self loan ends. Plus, discover some helpful ideas for how to make the most of your payout, along with smart ways to keep growing a healthy credit profile for the future.

What happens when your Self loan ends?

When you open a Self Credit Builder Account, you agree to make fixed monthly payments according to the terms of your loan agreement—typically for 24-months.* During that time, your payments have the opportunity to build a positive payment history with the three major credit bureaus (provided you make every payment in full and on time). And since payment history is the most important credit score factor, this could be a great step toward building healthier credit.^[1]

After your final payment, your Self loan “matures.” That means your account closes and the payout process begins.

Remember, unlike a traditional loan, you don’t receive your loan proceeds upfront when you open a Credit Builder account with Self. Instead, Self places the money you borrow in a Certificate of Deposit (CD) with one of its partner banks during the repayment period or until you repay the balance in full. When your Self loan ends, the payout process starts.

The payout timeline

At the end of your loan term (after you make your final payment), your Credit Builder Account is complete. From there, a payout tracker appears in your app dashboard within 24 hours so you can track the status of any potential payout Self may owe you (after interest and fees).^[2]

You can choose how you prefer to receive your payout funds in the Self app (either direct deposit or a check by mail). Depending on your choice, it may take up to three weeks for your money to arrive.^[3] Keep in mind, if you have any missed payments or outstanding fees, Self will deduct those from your payout before releasing the remaining balance.

How much money you’ll receive

Several factors may affect your Self Loan payout. The specific amount you’ll receive depends on details such as:

• The loan amount and term you selected when you initially opened your Self Credit Builder account.
• The interest and fees charged during the loan period.
• Whether you made all your loan payments on time.

For example, if you opened a Medium Builder account and paid it off at $35 per month at 15.69% APR over 24 months, your payout should be $717 (assuming no missed payments or outstanding fees). Meanwhile, your estimated final cost would be around $123, and your total payment amount would be $840.^[4]

What to do with your Self payout

Once you receive your Self payout, you get to choose how to spend the money. But if you use the cash wisely, that money could keep your finances and credit moving in a positive direction.

Here are a few smart ideas to consider.

• Start an emergency fund. If you don’t already have one, setting aside your payout in an emergency fund can help you cover unexpected expenses without the need to rely on high-interest credit cards or loans. Even if you already have some savings, consider adding more since experts often recommend saving at least six months' worth of expenses for emergencies.^[5]
• Put down a security deposit or a secured credit card. If you’re still building credit, consider using your funds to open a secured Self Visa®Credit Card. Managing the account responsibly could strengthen your credit mix and continue your credit-building journey.
• Pay down high-interest debt. Reducing balances on revolving accounts (especially credit cards) could lower your credit utilization ratio and save you money. Credit utilization is also a key factor that influences up to 30% of your FICO® Score.^[6] So, paying down credit card debt could have a positive credit score impact as well.
• Save toward a car or apartment lease. Landlords and lenders often check credit. So, building credit and setting aside a down payment might help you qualify for better terms later. (Tip: Make sure your bank account helps you reach your goals. A high-yield savings account or a CD that earns higher interest could help your savings grow faster.)
• Invest in your future. If you’ve already covered the basics, consider putting the funds into a savings account, education fund, IRA or other retirement savings options. Consider speaking with a trusted financial advisor if you’re not sure where to start.

Whatever you decide to do with your Self payout, it’s wise to keep your financial and credit goals front and center. Remember the reasons you applied for a Self Loan in the first place, and use those reasons to guide you in your decision.

Should you consider another Self loan?

For many people, one Self Credit Builder account is enough to get started on their credit-building journey. Upon successful completion of your Self Loan, you will have built a payment history and added a positive installment account to your credit mix (provided you paid every payment on time).

Self doesn’t automatically renew or “roll over” when your loan ends. But depending on your credit goals, applying for another Self Credit Builder Account might make sense in certain situations.

When a second Self loan could help

Opening another Self Loan could help you keep a healthy credit mix on your credit report over time if your credit report lacks any other installment accounts. A second Self account may be worth considering if:

• You want to continue building payment history.
• You’re still working toward specific credit score goals.
• You’re not yet ready or eligible for other types of credit products.

On the other hand, if you apply for too many credit builder accounts in a short time frame and pay them off quickly, there’s a risk you may shorten the average age of your credit accounts and potentially hurt your credit score. As a result, there’s a limit to the number of new Self loans you can open within a certain period of time.^[7]

How to keep rebuilding your credit

Finishing your Self Credit Builder Account is an accomplishment, but your credit journey doesn’t stop there. The next step is maintaining (and hopefully improving upon) your progress.

Good credit can open doors to better interest rates, lower insurance premiums, and easier approval for housing, loans, credit cards, and more. Below are some tips on how to keep building positive momentum after you finish your credit builder loan.

1. Open a secured credit card

For many people, a secured credit card can be one of the simplest tools to continue building credit responsibly. With a secured credit card, you make a cash security deposit that’s typically equal to the credit limit on the account. The deposit reduces the risk involved for the issuing bank and, as a result, it tends to be easier to qualify for this type of account even if you have bad credit or a lack of credit history.

When you manage a secured credit card responsibly, it can help you build credit over time (as long as the card issuer reports the account to the major credit bureaus). If you qualify, the secured Self Visa®Credit Card could be your next move. No matter the card you choose, remember to compare features and fees before applying.

2. Consider an unsecured credit card

Once your credit improves, you might qualify for an unsecured credit card that requires no upfront security deposit. Check your credit score first so you’ll know where you stand, then look for cards that are a good match for your credit profile. For example, you don’t want to apply for offers that require a “good” credit score if your current credit score falls within the “fair” credit score range.

No matter which card you open, follow responsible account management guidelines. It’s critical to pay your bill on time each month. And it’s best to pay off your full statement balance by the due date to avoid expensive interest charges. Keep your credit utilization ratio low as well if you want to maximize your credit scores.

3. Manage existing accounts wisely

As your ability to access credit expands, it’s important not to take on unnecessary debt. You don’t need to borrow money just to build credit.

For example, you wouldn’t want to apply for an auto loan for the sole purpose of establishing a credit score. However, if you need to finance a car for practical reasons (such as a need for transportation), then taking out an affordable car loan is a different story.

Once you do borrow money, it’s important to manage your credit obligations responsibly. Make every payment on time, avoid over-borrowing on revolving accounts, and track your balances monthly.

4. Become an authorized user

If a family member or close friend with good credit is willing to help you, becoming an authorized user on their credit might be another way to build credit faster. As an authorized user, it’s often possible to benefit from the primary cardholder’s positive payment history (once the account appears on your credit reports).

Just keep in mind that it’s important for your family member or friend to maintain low balances and pay the card on time—for both your sake and their own. If you become an authorized user on an account with poor payment habits or a high credit utilization ratio, the card could hurt your credit score rather than benefit it.

5. Sign up for rent and utility reporting services

If you’re paying rent or certain utilities, you can use that positive payment history to your benefit. These types of financial obligations don’t usually show up on your credit report (unless you fall behind).^[8] But rent reporting programs like Self’s Rent & Bill Reporting** can help you add on-time rent, phone, and utility payments to your credit file. It’s a way for you to proactively turn everyday expenses into opportunities to build positive credit history.

6. Monitor your credit

Finally, it’s important to keep an eye on your progress with Equifax, TransUnion, and Experian. Self customers can access their credit information for free and anyone can download free copies of their credit reports online once a week at AnnualCreditReport.com.^[9]

Monitoring your credit information helps you track improvements, spot credit errors or fraud, and stay motivated. It’s also a great way to make sure any positive history from your Self Credit Builder account continues to appear correctly on your credit reports.

Bottom line

Finishing your Self loan is a milestone worth celebrating. You’ve proven you can manage credit responsibly, build savings, and stick to your goals. But the end of your Self Credit Builder Account doesn’t mean it’s the end of your credit-building journey. It’s simply a fresh starting point for the journey to come.

Decide what to do with your payout wisely—whether it’s saving for emergencies, securing your next credit account, or reducing debt. Then, use the tools Self offers like the secured Self Visa® CreditCard or Self Rent & Bills reporting to keep building on the progress you’ve made.

Every on-time payment and smart financial choice you make adds up. With consistency and patience, the habits you’ve built through your Self Credit Builder Loan can set you up for long-term credit success.

*$25/mo, 24 mos, 15.92% APR; $35/mo, 24 mos, 15.69% APR; $48/mo, 24 mos, 15.51% APR; $150/mo, 24 mos, 15.82% APR. See self.inc/pricing

**Results vary. You may not receive an improved credit score. Not all lenders use scores impacted by rent/utility payments. Rent payments are reported to Experian, Equifax & TransUnion. Utility & cell phone payments are reported to TransUnion.

Sources

1. myFICO.com. “What Is Payment History?” https://www.myfico.com/credit-education/credit-scores/payment-history
2. Support.Self.inc. “What happens when the Credit Builder Account ends?” https://support.self.inc/s/article/What-happens-when-the-Credit-Builder-Account-ends
3. Support.Self.inc. “When do I receive the money from my Credit Builder Account?” https://support.self.inc/s/article/When-do-I-receive-the-money-from-my-Credit-Builder-Account
4. Self.inc./credit-builder-loan#. “What does it cost?” https://www.self.inc/credit-builder-loan#
5. Discover.com. “How to build an emergency und: 4 steps to get started.” https://www.discover.com/online-banking/banking-topics/4-steps-to-start-an-emergency-fund/
6. myFICO.com. “What Is Amounts Owed?” https://www.myfico.com/credit-education/credit-scores/amount-of-debt
7. Support.Self.inc. “Can I apply for more than one Credit Builder Account?” https://support.self.inc/s/article/Can-I-apply-for-more-than-one-Credit-Builder-Account
8. Chase.com. “Does paying monthly bills build your credit history?” https://www.chase.com/personal/credit-cards/education/build-credit/does-paying-monthly-bills-build-credit-history
9. AnnualCreditReport.com. “The only source for your free credit reports. Authorized by Federal law.” https://www.annualcreditreport.com/index.action

About the author

Michelle Lambright Black is a nationally recognized credit expert with two decades of experience. She is the founder of CreditWriter.com, an online credit education resource and community that helps busy moms learn how to build good credit and a strong financial plan that they can leverage to their advantage. Michelle's work has been published thousands of times by FICO, Experian, Forbes, Bankrate, MarketWatch, Parents, U.S. News & World Report, and many other outlets. You can connect with Michelle on Twitter (@MichelleLBlack) and Instagram (@CreditWriter).

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Our goal at Self is to provide readers with current and unbiased information on credit, financial health, and related topics. This content is based on research and other related articles from trusted sources. All content at Self is written by experienced contributors in the finance industry and reviewed by an accredited person(s).