A credit builder account is a small installment loan that's held in a certificate of deposit (“CD”) bank account. The account is FDIC insured and is held in your name.

The credit builder account available inside Self Lender works in the following way:

1. You can join Self Lender at no cost and then apply for a credit builder account. Once approved, you pay a one-time non-refundable administrative fee for the credit builder account. Pricing Details.

2. Our bank partner lends you a small loan that’s held in a FDIC insured CD (these funds are locked until the loan is paid in full).

3. Next month, you begin to repay your credit builder account by making equal payments over the term. Each month, payment history is reported to the credit bureaus.

4. At the end of the term, you've paid off your loan and your CD matures and unlocks with earned interest. During the term of the loan you've demonstrated months of payment history to the credit bureaus, which accounts for 35% of your FICO score. However, when paid-off the loan no longer provides active payment history and no longer helps to improve your credit score. It is important to maintain active accounts with positive payment history to maintain or improve your credit score.