If you don’t have a credit score, getting your foot in the door with lenders is nearly impossible. The Consumer Financial Protection Bureau estimates 45 million U.S. adults do not have credit scores and therefore do not have the opportunity to prove or build their creditworthiness.
Self Lender, a venture-backed tech startup, pioneered a scalable way for Americans to establish credit history while saving money at www.selflender.com. The company recently raised a $5 million series A financing after experiencing rapid customer growth. Since 2016, Self Lender has helped tens of thousands of people establish credit history, who otherwise wouldn’t be able to climb the ladder of our financial system.
We are incredibly excited to announce the Bloom partnership with Self Lender.About Self Lender
Building a financial foundation is a daunting task — since 2016, Self Lender has helped over 40,000 people start their financial journey with a credit builder account (“CD-secured installment loan”).
In addition to helping its customers build credit, Self Lender has also helped its customers save over $36 million in certificate of deposit accounts.
With a shared vision for enabling financial stability for everyone, the Bloom and Self Lender teams are excited to work together toward our shared vision of the future of credit.How Does Self Lender Work?
The Self Lender credit builder account is a resource for people looking to build creditworthiness while they save. The credit builder account is also known as a “CD-secured installment loan.” Below is an overview of the process:A borrower applies for a credit builder account.Self Lender’s bank partner lends the borrower a 12-month installment loan; however, the loan proceeds are deposited into a brand new 12-month, interest-bearing, FDIC insured CD account in the customer’s name.The borrower makes monthly payments to repay the loan. The payment...