Secured Self Visa^® Credit Card Review: A Costly Way to Build Credit

The Secured Self Visa^® Credit Card is best for consumers who want to open a card without a credit check, and for those looking for a secured credit card with a lower-than-usual deposit.

But while it provides a good chance to build your credit, it’s not the best choice for a secured credit card. You’ll have to open a Self Credit Builder Account to apply for the card, which comes with its own set of interest and fees. You’ll also have to make at least three monthly payments on time before you can open a card. Plus, there’s a $25 annual fee.

• Annual fee: $25
• Sign-up bonus: None
• Rewards: Non-rewards card
• Regular purchase APR: 29.24% Variable.
• Security deposit: $100 minimum
• Other benefits:
  • Reports to the three major credit bureaus
  • Increase credit limit over time
  • Visa® credit card benefits
• Recommended credit: Poor

• No credit check

  The Secured Self Visa^® Credit Card doesn’t require a credit check to apply, making it an easy card to get approved for if you have poor or limited credit.

  To apply for the card you’ll need:

  • An eligible credit builder account in good standing
  • Three monthly payments made on time
  • $100 or more in savings
  • Updated income and expenses

  This is a pretty easy process if you’ve already started building a savings with a Self Credit Builder account. But if you’re a new applicant, this could create some barriers, since you’ll need several months of payments before you can apply for the credit card.

  If you’re worried about getting approved for a card because of your credit score, there are a number of cards available to those with bad credit.

  What is a credit check? Typically when you apply for a credit card, a hard credit check is performed. This is a complete search of your credit report that typically stays on your credit report for up to two years and can temporarily impact your credit score.

  There are cards that perform a soft inquiry that doesn’t stay on your report. In addition, there are also cards that don’t require a credit check.

• Low minimum security deposit

  Secured credit cards usually require an initial security deposit of around $200. The Secured Self Visa^® Credit Card only requires a minimum deposit of $100.

  How does my deposit work?

  The Secured Self Visa^® Credit Card‘s deposit works a little differently than most secured cards. Instead of depositing cash, you’ll use a portion of your savings from your Self Builder account as your security deposit. Similar to other secured cards, your security deposit will act as your credit limit. (For example, if you use $100 of your savings as your deposit, your credit limit will be $100.)

  Unlike most secured cards, though, you may have to wait to get your deposit back when you close your account. You must complete 24 months of payments toward your Self Credit Builder account before you can withdraw your deposit. The account essentially functions as a loan, and interest and fees apply — so you won’t receive the full amount you deposited after the 24-month period.

  Learn more about secured credit cards.

• Chance to increase your credit limit

  Once you start to make savings progress in your Credit Builder Account, you’ll receive an alert in your dashboard that you’re eligible to increase your credit limit. Both your Credit Builder Account and credit card account must be in good standing to increase your limit. Your limit can be increased in multiples of $25 at a time. Your new limit will be secured using money from your Credit Builder Account. The maximum security deposit is $3,000.

• Credit building tools

  A major advantage of the Secured Self Visa^® Credit Card is the chance to build your credit. Designed for those with poor credit, this card reports monthly payments to the three major credit bureaus. This contributes to your credit payment history, a key factor in credit building which accounts for 35% of your FICO Score.

  Learn more about how to build credit with a credit card.

• No rewards program or sign-up bonus

  The Secured Self Visa^® Credit Card doesn’t come with a rewards program or sign-up bonus. And while not all secured cards come with a rewards program, there are still many that do. For example, the Discover it^® Secured Credit Card lets you earn 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. Discover will match all the cash back you’ve earned at the end of your first year.

• Requires a Self credit builder account

  You can’t open a Secured Self Visa^® Credit Card without first opening a Self Credit Builder account and building up $100 in savings progress, which could take several months.

  The Self Credit Builder account is a loan in a bank-held Certificate of Deposit (CD) that you’ll pay off in monthly installments. Making on-time monthly payments allows you to build credit history and add to your savings. Once you pay off your account, the money unlocks and is returned to you, minus fees and interest.

  There are four payment options:
  

  Payment plan	Total payments	Get back	Total cost
  $25/month for 24 months	$600	$511	$89
  $35/month for 24 months	$840	$717	$123
  $48/month for 24 months	$1,152	$985	$167
  $150/month for 24 months	$3,600	$3,069	$531

  
  Although this provides you with a chance to choose your credit limit while building credit, there are options with a lower barrier to entry, like the OpenSky^® Secured Visa^® Credit Card or the Discover it^® Secured Credit Card.

  *Based on LendingTree’s value methodology

Secured Self Visa^® Credit Card vs. Discover it^® Secured Credit Card

The Discover it^® Secured Credit Card is a better option than the Secured Self Visa^® Credit Card, because it allows you to earn rewards while building credit — all with a $0 annual fee. Unlike the Secured Self Visa^® Credit Card, you won’t have to pay interest or fees as long as you pay your balance by the due date, and you don’t have to open an additional account to apply.

Plus, after seven months of responsible credit use, Discover will begin automatic monthly account reviews to see if you’re eligible to upgrade to the unsecured version of the card and get your deposit back. You could earn around $90.64 in cash back each year* with the Discover it^® Secured Credit Card, while you’d lose money on fees with the Secured Self Visa^® Credit Card.

*Based on LendingTree’s value methodology

Secured Self Visa^® Credit Card vs. Capital One Platinum Secured Credit Card

If you like the idea of a low minimum deposit, but you don’t want to worry about an additional account, the Capital One Platinum Secured Credit Card is a good alternative. You can put down a deposit starting at $49 to get an initial credit limit of $200. (You will have to apply and be approved before your minimum deposit is determined.)

In addition, you’ll automatically be considered for a higher credit line in as little as six months without needing to make an additional deposit. This card is a more cost-effective option compared to the Secured Self Visa^® Credit Card.

Secured Self Visa^® Credit Card vs. OpenSky^® Secured Visa^® Credit Card

The OpenSky^® Secured Visa^® Credit Card has a $35 annual fee, but it’s a good alternative if you’re looking for a card with no credit check, as there are no barriers to apply. You’ll just need to provide some identifying information like your name, address and date of birth. Plus, you’ll also earn up to 10% cash back rewards on purchases.

Further, after six months of owning the OpenSky^® Secured Visa^® Credit Card, you can request a higher credit limit. And you may even be eligible for the unsecured version of the card if you have a responsible spending history.

If you’re worried about getting approved for a credit card, applying for the Secured Self Visa^® Credit Card with no credit check may be appealing. But since the card is tied to a Self Credit Builder account, which has additional financial requirements, it isn’t for everyone. It can end up costing you more long term to build credit because of the additional fees associated with opening a Credit Builder account.

To save money while building credit, choose a card that has a $0 annual fee and fewer requirements, like the Discover it^® Secured Credit Card, Capital One Platinum Secured Credit Card (see rates & fees) or OpenSky^® Secured Visa^® Credit Card.