Self Financial, a fintech startup promising to help Americans build their credit while also saving money, has raised $50 million in a Series E funding round led by Altos Ventures.
Self is one of several startups taking aim at the nearly 100 million Americans who have a credit score of 600 or lower or are unscoreable because of a lack of information.
The firm’s credit builder account lets people with poor or no credit history apply for a small loan with a bank partner that is held on a Certificate of Deposit (CD). Users then make monthly payments which are reported to the three major credit bureaus. At the end of the term, the CD matures and unlocks with the principal amount coming back to the customer.
Additionally, a secured credit card does not require a credit check and lets customers build their security deposit in instalments.
Self has now served more than two million Americans, while its active customer base has more than doubled in the past 12 months. From this month, the firm will open the door to people who hold an H-1B or L-1 work visa or student visa.
James Garvey, CEO, Self, says: “We believe everyone should have the opportunity to improve their financial future.
“That belief shapes everything we do, so looking ahead, we will continue to invest in the business and improve on our products to offer industry-leading solutions that support consumers, particularly those who are new to credit or building their credit.”
