Self Lender, an Austin, Texas-based provider of consumer tools for people to build their credit, raised $10m in Series B financing.
The round was led by Altos Ventures, with participation from Silverton Partners, Accion Venture Lab and others.
The company intends to use the funds for expanding the team, building new products and increasing marketing efforts.
Led by James Garvey, CEO, Self Lender is a fintech startup offering Americans a way to build their credit without the use of credit cards while also saving money.
It works in three steps:
- customers get a small credit builder loan that’s held in a CD (certificate of deposit) for safekeeping.
- customers repay the loan on a monthly schedule while payments are reported to the credit bureaus.
- Finally, once the obligation is paid, the customer has established credit history and the CD unlocks with the customer’s money.
The company has provided over 175,000 people with a credit-builder account, a simple way to build credit and save money at the same time.