Self vs SeedFi Borrow and Grow

Two Different Products

The SeedFi Borrow and Grow and Self are both credit builder loans. But they are different. The SeedFi Borrow and Grow is a unique combination of an installment loan and a credit builder loan. The Self Credit Builder is a conventional credit builder loan but they also have a secured credit card and allow you to get it once you have saved up a certain amount and use the savings as a security deposit.

In this comparison, we will compare both the the SeedFi Borrow and Grow and Self Lender and see which is the better for you.

The Basics

SeedFi Borrow and Grow

SeedFi Borrow and Grow is a hybrid of an installment loan and credit builder loan. While a conventional credit builder loan does not deposit the loan amount immediately to your bank account, the SeedFi Borrow and Grow allows you to access part of the loan amount. SeedFi gave the following example on their website which illustrates how it works.

The example given is that you take out a Borrow and Save program with a $7,000 amount. Of this $7,500, you can access $3,500 while the other $3,500 is not accessible and is locked in your SeedFi Savings Account until you repay in full. The payment is $120 every 2 weeks and the maturity of the loan is 40 months. The APR is 24.99%. In your credit report, the loan amount will be reported as $7,000 (though you can only access $3,500). The one big difference between Borrow and Grow and other credt builder programs is that you first have to go through a soft pull pre-approval process and if you are approved there will be a hard inquiry. Below is a table highlighting possible terms with the Borrow and Grow program.

Self Basics

Self has both a credit builder loan as well as a secured credit card. The Self Credit Builder has 4 payment plans with maturities of either 12 or 24 months. You get get the secured credit card once you have saved up at least $100 and have made a minimum of three $25 monthly payments. The $100 that you have saved up can be used for the security deposit of the Self secured credit card. If you want to have a larger security deposit, then you just simply have to wait until you saved that amount. Both the Self credit builder loan and secured credit card does not perform any credit checks or hard inquiry. Below is a table highlighting their four payment plans.

Program	Installment Amount	Maturity	Payment Amount
Self	$520	24 Months	$25/month
Self	$724	24 Months	$35/month
Self	$539	12 Months	$48/month
Self	$1,663	12 Months	$150/month

Similarities

• Reports to all three major credit bureaus - Both products report to all three major credit bureaus and help you build your credit.

Differences

• Both Credit Builder Loans But very different - Though both a credit builder loans, they are really different. SeedFi Borrow and Grow is a hybrid instalmment loan and credit builder loan combo whereas Self is a credit builder loan where you can use the savings for their secured credit card.


• Credit Pull - Self is a conventional credit builder loan which does not perform any credit check or hard inquiry. The SeedFi Borrow and Grow requires you to go through a soft pull pre-approval with no impact on your credit score. If you are pre-approved and take up their offer, there will be a hard inquiry.

Which is better?

Since both the SeedFi Borrow and Grow program and Self are two really different products, one cannot say which is better. Rather they have different consumers in mind.

The SeedFi Borrow and Grow is for those who would need a loan immediately yet want to save for say, an emergency cash. If this describes you, then the SeedFi Borrow and Grow is perfectly suited to you.

In contrast, Self is really for those who want to get a secured credit card but need to save up for a security deposit. If this describes you, then Self would be the way to go since it offers a seamless process from a credit builder loan to a secured credit card.