Credit-building startup Self raises $20m

Credit-building startup Self raises $20m

Self, a fintech startup promising to help Americans build their credit while also saving money, has raised $20 million in a Series C funding round led by Altos Ventures and Conductive 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.

Recently, Self introduced a secured credit card that does not require a credit check and lets customers build their security deposit in installments.

With more than 500,000 consumers and $400 million in CD-secured loan originations, the Austin-based outfit now plans to use its latest funding to make hires and boost product development and marketing.

James Garvey, CEO, Self, says: "Our goal from the beginning was to create a mission-driven company that gives the power back to consumers and helps them achieve their financial goals."

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