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How’s it going everybody this is beat the bush today i’m gonna show you how to build credit when you don’t have credit to begin with sometimes when you have a really really low credit score you can’t even get yourself a secured credit card to begin with nor can you get a loan to try to help build your credit score in this case you only stuck with very very few
Options one is you can go to a credit union to get a credit builder loan second is you can beg someone that has a really good credit score to add your name to their credit cards so that you get a little bit of their kid credit score in some sense you can do all of these all at once you don’t have to pick one or the other you can just do all of them at once whichever
One is easiest for you then you can just do them and they would work in parallel to improve your score all that much faster now the thing i’m gonna talk about today is a self lending loan this is essentially a loan to yourself which is monitored by a third party called self lender what they do is yes they charge you a fee for this privilege of building your credit
What happens is you start a self lending loan you pay an initial small fee of $12 and then you pick a payment plan and then this payment plan is actually not payment to them it’s payment to yourself what self lender does is they hold this money for you in a cd account and causes you to save money this money at the end of 12 months it’s given back to you so you can
Kind of look at this as a credit builder slash savings account because you’re getting most of the money back anyway now this self lender thing does not do a hard credit pull on your credit score so it will not cause it to go down it does not care about your credit score at all so you can have anything any credit score at all and you can still join this service in an
Effort to improve your credit score now after you join it may take up to 60 days for something to appear on your credit score so you have to wait patiently here and you might need about three months before you see a good score improvement on average after about four months of using self lender people see about a thirty five point increase in their credit score and
After the full year it’s about 65 to 70 points improvement on average sometimes people get a little bit less other times people got a lot more some people that do not have a credit score at all may see an improvement going from nothing or zero all the way up to six hundred ninety points in about three months now this self lender thing works best for credit score
That are really low the closer that you get to about 720 which is a really really good credit score the less effect that this self lender will have on your credit score now check out these three options that self lender gives you you can have the five hundred fifty dollar plan the one thousand one hundred dollar plan the two thousand two hundred dollar plan all
The sign up fee is twelve dollars here and then you’ll have a monthly fee of forty eight fifty $97 or one hundred ninety four dollars based on which plan that you prefer after twelve months of payments of 48 50 you’re gonna end up paying five hundred ninety four dollars in total the next one is 1176 the next one after that is 2,340 now because they take all your
Payments and stick it into a cv account by the way the cd account has an interest rate of 0.1 percent apy it’s not much it gives you a little bit the first plan gives you a total of fifty five cents for the whole year the second plan one dollar and 10 the third plan gives you an interest of two dollars and 20 cents now you’re not really signing up for this service
To get a good interest rate anyway the purpose of this is to get a consistent history in your credit report so that you get a better and better credit score at the end of all this of making all these payments and the sign-up fee and all that subtract out the five hundred fifty dollars of cv that you’re gonna get back so the outlay of whatever amount twelve dollars
Plus five hundred ninety four dollars you get most of it back this is five hundred fifty dollars that you get back so at suddenly at the end of the year you’re gonna get a chunk of money after you’ve finished this payment plan which is a really great way to kind of end the whole thing and then you get a sort of like a reward of all the payments that you paid into
It and then you can just stick this put it back into a cd or something put it in your savings whatever you want to do with it it’s still your money they’re not going to take this away if you take whatever you paid into it and subtract out whatever you get back the total fee that you’re giving to self lender for the first option is forty three dollars and forty-five
Cents the second option $74.90 the third option 137 dollars and 80 cents now you might wonder which options should you pick does it matter all that much if you pick $1,100 option $2,200 option well it does not matter all that much the thing that does matter is that you are able to consistently pay this payment plan over an entire year so pick whatever payment
Option that fits you best i would recommend to have this amount already in your checking account so that you don’t have to worry about trying to get this amount to pay self lender you should have this amount already so that you are guaranteed to pay it off completely now you might feel like oh you’re really in a hurry so why don’t you get this account first and
Then like the first or second month you pay it all off completely this is not the way to do it because you want the history here you want to drag it out as long as possible which is only 12 months at a time and you want these payments to show up on your credit report so that it will go okay you paid on time on time on time on time and this is a really good thing on
Your credit report one last thing to know is that this is a loan here and they will report to your credit report so that if you do miss a payment if you are more than 30 days late they will report a late payment on this account so this means all the more important to have the money beforehand before you start this whole service and then you’re gonna see a drastic
Improvement in your credit score some people might wonder if you can use a credit card to pay these payments no you cannot they only allow debit cards or checking account withdraws it sort of makes sense you should not be using a credit card to pay into this because this is paying into a loan so they will not accept a credit card i hope all this really helps you
Improve your credit score especially if you’re stuck in a rut and there’s no way out because you can’t get credit if you don’t have credit to begin with you’re interested in this self lending loan don’t forget to check out my affiliate link down in the video description below or if you click through that link you will actually help benefit this channel and as always
I also have an audible link down innovative description below i have a patreon over here and don’t forget to subscribe thanks for watching
Transcribed from video
[SelfLender Sponsored] Build Credit When You Cannot Get a Credit Card By BeatTheBush
