How to Easily Cancel Your Self Credit Builder Account?
Have you been using Self Credit Builder to help improve your credit score, but are now ready to close your account? Maybe you’ve reached your credit goals, can no longer afford the monthly payments, or are just unsatisfied with the service.
Whatever your reasons, canceling your Self account is simple. You just need to call their customer service line or visit the Self website to initiate closure. Then make sure to pay off any remaining balance so the rest of your deposits can be returned.
This straightforward process lets you exit the program without hassle. However, there are a few things to consider beforehand to avoid penalties or credit damage.
In this comprehensive guide, we’ll explain:
- What Self Credit Builder is
- Why you may want to cancel your account
- Step-by-step instructions to close your account
- Important factors to consider first
- Alternatives to complete closure
- Answers to frequently asked questions
Let’s start by understanding what Self Credit Builder is and how it works.
What is Self Credit Builder?
Self Credit Builder is an online financial service that helps consumers build and improve their credit scores. It is offered by Self Financial, a fintech startup based in Austin, Texas.
With Self Credit Builder, you essentially take out a fixed installment loan that you pay back over time. However, instead of receiving the loan funds directly, the money is deposited into a FDIC-insured certificate of deposit (CD) account.
As you make monthly payments toward repaying the loan, Self reports your positive payment activity to all three major credit bureaus. This helps demonstrate you are a responsible borrower and leads to credit score growth.
Once the term of your loan is complete and you’ve paid it off in full, the money in your CD unlocks and is returned to you, minus any interest and fees accrued.
So in essence, Self Credit Builder allows you to build savings while also building better credit. It can be an effective tool, especially if you have poor credit or no prior credit history.
Why You Might Want to Cancel Your Self Account
There are a few common reasons you may decide to cancel your Self Credit Builder account:
- You’ve improved your credit and no longer need it. If you’ve used Self for a year or more and your credit has now reached a good/excellent level, you may feel ready to close your account. You achieved your goal of building better credit and no longer require the service.
- You can no longer afford the monthly payments. Self Credit Builder requires consistent payments for the duration of your loan term. For some, this may become unmanageable due to unexpected hardship like job loss or medical expenses. Cancelling the account stops the recurring payments.
- You are unsatisfied with Self’s services. Perhaps customer service was poor or Self did not provide the credit improvement expected. Disappointment in the service could prompt you to cut ties with the account.
- You opened multiple credit builders. Some sign up for credit builder loans from multiple companies simultaneously. But managing payments across too many accounts can be difficult. Canceling one (like Self) simplifies your finances.
- You no longer need help establishing credit history. If you now have sufficient credit cards or loans reporting positive activity regularly, you may not require Self continuing to submit reports. So you may decide to close the account.
Whatever your particular reasons, just know that canceling your Self Credit Builder account is totally doable and relatively straightforward. Now let’s go over the step-by-step process.
Steps to Closing Your Self Credit Builder Account
Closing your Self account can be handled entirely online or over the phone. Here are the simple steps to take:
Call Self Customer Service
The quickest and easiest way to cancel your account is to call Self’s customer service line.
The number to call is 877-883-0999. When prompted, press 1 to be connected with a representative.
Be ready to verify your identity by providing personal information like your name, address, Social Security number, etc. It’s also very likely you will need to provide proper account authentication by answering security questions or inputting codes/passwords.
Once your identity and account access is confirmed, let the agent know you wish to close your Self Credit Builder account. They will handle the process from there and provide any other instructions needed to finalize account closure.
Note: If calling from a phone number not already on file with your Self account, verification may take longer as additional proof of identity is required.
Cancel Through the Self Website
Alternatively, you can cancel your Credit Builder account directly through the Self website without needing to talk to an agent.
Simply log into your Self account dashboard and look for a link at the very bottom that says “Cancel Subscription.” Click this.
You will again need to take steps to verify your identity. Follow any prompts to provide info like your SSN, account password, etc.
Once verified, you can continue through the online cancellation process. There will be various confirmation screens to ensure you want to close your account.
Completing the cancellation steps online is just as effective and quick as calling. So choose either method based on your preference.
Pay Off Any Remaining Account Balance
Before your Self account can be officially closed and your remaining funds returned, you must pay off any outstanding balance still owed.
This means settling any unpaid monthly installment payments, interest charges, late fees, or other penalties that remain on your account.
By paying your account balance down to $0, you ensure there are no lingering debts that need repayment. Self can then process closing the account and refunding your deposits without issue.
Be aware – if you still owe a balance when attempting to cancel your account, the remaining amount due will automatically be deducted from your deposits before they are returned.
Receive Your Remaining Account Funds
Once your Self Credit Builder account reflects a $0 balance indicating it has been paid in full, the process of returning your remaining money can begin.
Within approximately 10 to 14 business days after the account is closed, you will either receive a check in the mail or direct deposit transfer for the leftover funds in your account.
This money will be the deposits you made to your account minus any interest accrued, account fees, or other outstanding balances that were owed/paid off.
And that’s it – those are the primary steps involved in canceling your Self Credit Builder account! Overall, a simple and straightforward process.
Now let’s discuss a few things you should consider before closing your account.
Important Factors to Consider Before Closing Your Self Account
While the cancellation process itself is easy, there are some important things you should keep in mind beforehand:
Account Closure Fee
If you close your Self Credit Builder account early, meaning before the full loan repayment term is complete, you may be subject to a cancellation fee.
This early account termination fee is typically around $5 or less. The specific amount varies based on factors like your remaining account balance.
So be prepared that a small cancellation penalty may apply if you have yet to make all the required payments over the full duration of your loan’s term.
Credit Score Impacts
Closing your Self account can negatively impact your credit score if not handled carefully.
First, make sure to fully pay off any remaining balance owed so the account status does not become “closed” or “cancelled.” You want the account marked “paid in full/closed at consumer’s request” for the most positive reporting.
Additionally, cancelling the account removes a credit account from your history. This can lower your credit age and mix of accounts, both of which factor into credit scoring models.
So be strategic about when you close the account to minimize score impacts. For example, only cancel once your credit profile is well established with other accounts reporting.
No More Account Access
After your Self Credit Builder account is closed, you will obviously no longer have access to it.
So if you change your mind later and decide you want to reopen the account, that will not be possible. Cancellation and closure is permanent.
Be 100% sure you no longer need the account and its credit building services before completing the cancellation steps. Once done, reactivating the account or applying again in future is not an option.
Impacts to Self Visa Card
If you also have the Self Visa Credit Card that is linked to your Credit Builder account, be aware that canceling your Self account automatically closes the card as well.
Once your Credit Builder account is closed in the Self system, your associated Visa card will also be closed and deactivated.
So if you want to keep the secured credit card open, you would need to retain your Self Credit Builder account. They are tied together and closing one results in termination of the other.
Consider these impacts carefully before deciding to cancel your Self account. Now let’s discuss some alternatives to complete account closure.
Alternatives to Closing Your Self Credit Builder Account
Instead of fully closing your account, you may want to consider these options to keep your account open but with modifications:
- Lower your monthly payment amount. If affordability is the issue, you can call Self and request to decrease your installment amount to something more manageable within your budget.
- Pause payments temporarily. Self allows you to defer making payments for up to 3 months if you are facing financial hardship or temporary struggles to make your monthly installments. This allows you to keep the account open without requiring monthly payments during the deferment period.
- Remove authorized user accounts. If you opened your Self Credit Builder account jointly with another person as an authorized user, you can remove their access to the account while keeping your own open. This is an option if the other person no longer needs their authorized user history.
- Switch to lower loan term length. You can contact Self to change your payment term to a shorter duration which lowers the total interest paid over the life of the loan. This makes your balance payoff faster while still keeping the account open.
So explore these options with Self’s customer service team to see if an alternative solution works better for your situation before moving right to full cancellation.
Frequently Asked Questions About Canceling Self Credit Builder
Here are answers to some common questions people have about closing a Self Credit Builder account:
How long does it take to cancel my Self account?
The account itself closes at 11PM CST on the same day. However, allow up to 14 business days after closure for any remaining account balance to be returned to you.
Will canceling hurt my credit score?
It can potentially cause a small drop from the account falling off your history and lowering credit age/mix. But be strategic about timing and pay off the balance so closure has minimal credit impact.
What happens to my deposits if I still owe a balance when I cancel?
Any amount you still owe on the account will automatically deducted from your available deposits before the remainder is refunded to you. So make sure to fully pay off the balance before closing.
Do I lose all the money I deposited if I cancel early?
No, your deposits will be returned to you minus any accrued interest and fees, as outlined in your original loan agreement. The amount lost will be greater if closing early into the term vs. at full maturity.
Can I restart my Self account after canceling?
No, once you fully close the account that cancellation is permanent. You cannot reopen or reactivate a closed Self Credit Builder account.
Conclusion
We hope this detailed guide provided everything you need to know about canceling your Self Credit Builder account. The steps to take are straightforward – either call Self’s customer service or complete account closure through their website.
Just be sure to first settle any outstanding balance you owe so the account can be marked “paid in full.” Also consider impacts to your credit and other linked services before finalizing closure.
While canceling Self is simple, we recommend exploring alternatives like adjusting your payment plan if possible. That allows you to keep your account open and continue improving your credit.
But if you are set on closing your Self Credit Builder account, now you know the proper process to follow from start to finish. Just be an informed consumer and take steps to minimize any negative effects to your credit standing.
