Building credit can be a long process that feels like there's no end. For many, the biggest challenge isn't getting started: it's finding the right plan that aligns with your goals and budget. Two solid options, Cheers Credit Builder and Self Credit Builder, are great credit builder options to help people create a positive payment history while saving money at the same time. Both follow the same basic idea, but the way they deliver results can feel very different once you look closer.
Understanding Credit Builder Loans
A credit builder loan is a simple tool meant for people who are new to credit or looking to rebuild after a setback. Instead of borrowing a lump sum and spending it, you make small monthly payments into a locked savings account. Each payment is reported to the three major credit bureaus-Experian, TransUnion, and Equifax-helping you establish a record of on-time payments¹. When the term ends, you get back the money you've paid, minus the interest charged.
This setup allows you to build credit while saving. It's a low-risk approach that can show future lenders you can manage debt responsibly. Both Cheers and Self use this model, but the way they structure their plans, fees, and reporting schedules sets them apart.
How Cheers Credit Builder Works
Cheers Credit Builder is designed to make credit building straightforward and affordable. Customers select a plan that fits their budget, with total loan amounts ranging from $528 to $3,168 for 24 months². Each month, you make a set payment plus a small amount of interest. The interest rate is 12.15% per year (APR)³. There are no administration or membership fees⁴, which keeps the cost of building credit transparent.
Cheers performs identity verification but doesn't pull your credit score. That means anyone can get started, even without an established credit history. Once the account is active, funds are held in an FDIC-insured savings account with Cheers' partner bank. Every month, your payments are reported to all three credit bureaus¹. The process begins quickly-your first payment is processed the following business day after signup, helping the tradeline appear on your report faster through accelerated reporting⁵.
At the end of your loan term, you receive the total amount you've paid, minus the interest. It's a simple way to build credit while saving money in the background. Cheers emphasizes flexibility, allowing you to cancel at any time and withdraw your savings balance if your financial situation changes⁶.
Cheers is not a bank. Sunrise Banks, N.A. Member FDIC, holds deposit accounts.
How Self Credit Builder Works
Self offers a similar path but with its own structure and pricing. Like Cheers, Self's Credit Builder Account is an installment loan held in a secure savings account. You choose a plan, make monthly payments, and your progress is reported to all three major credit bureaus. At the end of your term, you receive the saved amount, minus interest and fees.
Reporting to the credit bureaus usually begins after your first successful payment, though it may take several weeks to appear on your credit reports. The program is meant to be accessible, with no hard credit check required to get started. Once you complete all payments, you can unlock the savings balance, helping reinforce good financial habits through consistent monthly activity.
The cost of Self’s credit builder loan depends on the plan you select. You can view one of Self’s Credit Builder Account Pricing to compare the monthly payment and loan options.
Cheers vs Self Credit Builder: The Similarities
Both Cheers and Self are designed for people who want to improve their credit profile by building a consistent payment history. They share several key traits:
- Both report your monthly payments to all three major credit bureaus¹, which helps strengthen your credit file.
- Both hold your payments in a secure, FDIC-insured account, ensuring that your money stays protected.
- Both return your savings after the loan term ends, minus the interest or fees owed.
- Both make it possible to start building credit without needing a traditional loan approval or a strong credit score.
At their core, these programs follow the same credit-building philosophy: make manageable payments, prove reliability, and create savings along the way.
Where They Differ
Even though the model is the same, the experience with each company can be quite different. Understanding those differences helps you choose the program that matches your goals.
Cost and Fees
Cheers charges a simple, flat 12.15% annual APR³ with no membership or administration fees⁴. Self's APR is typically higher, near 15%. For someone watching every dollar, those added costs can matter over a 24-month period.
Plan Options and Savings Goals
Cheers offers higher potential loan amounts-up to $3,168²-allowing users to build larger savings while establishing credit. Self's smaller payment plans make it easier for people on tighter budgets to participate, but also mean a smaller payout at the end of the term.
Accessibility and Credit Checks
Cheers openly states that there's no credit check required, only a quick identity match. Self also doesn't need a hard credit pull, though it's framed more generally as "accessible to most applicants." In both cases, the barrier to entry is low.
Cheers vs Self Plan Comparisons
1st Tier
2nd Tier
3rd Tier
4th Tier
Which One Fits Your Credit Journey?
Both options aim to help you build a solid financial foundation, but the right choice depends on your needs. If you value transparency, quick setup, and faster reporting, Cheers may offer a different experience. If you prefer smaller monthly payments and an app-driven platform, Self could be a better fit. Either way, consistency is what counts-the longer you make on-time payments, the more reliable your credit profile becomes.
What to Expect in the First 90 Days
Whether you choose Cheers or Self, the first three months are about forming a routine. Paying on time each month is the most critical factor, since payment history makes up roughly 35% of your credit score⁷. During this period, you may begin to see your new account appear on your credit reports, signaling that the bureaus have started tracking your payments¹. While no one can predict exact score changes, consistent payments often build a stronger foundation for the months ahead.
How to Make the Most of a Credit Builder Loan
Treat the loan like a training plan for your credit habits and set reminders for your due dates, keep enough funds in your checking account for each payment, and avoid missing any installments. The longer your streak of on-time payments, the stronger the record you're creating. By the time the loan ends, you'll have built both credit history and savings-two essentials for financial growth.
The Bottom Line
Both Cheers and Self make credit-building approachable, especially for those who feel shut out by traditional lenders. The difference comes down to how you want the process to feel. Cheers keeps things simple with no hidden fees⁴, faster reporting, and flexible plan options². Self provides a different app-based experience with smaller starting payments.
Whichever path you choose, the real goal is the same: prove your consistency, build a foundation for better financial opportunities, and turn every payment into progress.
Disclosure: Cheers is not a bank. Sunrise Banks, N.A. Member FDIC⁶, holds deposit accounts. This article is for educational purposes only and does not guarantee any specific credit-score improvement.
References:
- MyFICO – https://www.myfico.com/credit-education/credit-scores
- Self Inc. – https://www.self.inc/pricing
¹ Payment activity: All payment activity is reported to the credit bureaus. On-time payments may help build your credit, while late or missed payments may negatively impact it.
² Credit Builder Account Plans:
All plan options include a 24-month term, 25 total payments and a 12.15% Annual Percentage Rate (APR).
Plan A: Total Payments of $600 with $532.70 Amount Financed. $24 Monthly Payments and $67.30 Total Interest.
Plan B: Total Payments of $825.02 with $733.13 Amount Financed. $33 Monthly Payments and $91.89 Total Interest.
Plan C: Total Payments of $1,149.98 with $1,021.69 Amount Financed. $46 Monthly Payments and $128.29 Total Interest.
Plan D: Total Payments of $3,600.00 with $3,197.82 Amount Financed. $144 Monthly Payments and $402.18 Total Interest.
³ APR Comparison & Affordability: Cheers interest is calculated using an amortized repayment schedule at a fixed 12.15% Annual Percentage Rate (APR). Comparable products may charge up to 36%.
⁴ No Hidden Fees: There are no application fees, maintenance fees, or early cancellation penalties.
⁵ Accelerated Reporting: Applies to the opening of your account and the first payment. Credit bureau reporting occurs monthly thereafter.
⁶ Cancel Anytime & Get Savings Back: At the end of your term, your savings (minus interest) is returned. You can cancel your account anytime without penalty.
⁷ FICO® Credit Factors: According to FICO®, 35% of your credit score is based on payment history and 10% on credit mix. Source: myFICO – https://www.myfico.com/credit-education/whats-in-your-credit-score
⁸ Credit Score Impact: Based on internal user survey data (2024), 95% of users with fair credit (580–669) saw a score increase of 20+ points after two months of on-time payments.
.png)
