Austin-based Self Financial Raises $ 40 Million for Personal Finance Tools

Self Financial, which helps consumers build and build credit histories, has raised $ 40 million to accelerate marketing and product development.

The Austin-based company received the funding under an agreement led by Meritech Capital with participation from investors such as Altos Ventures, Conductive Ventures and Silverton Partners.

The funding follows a $ 20 million fundraising round in February and brings the total raised by Self to $ 77 million.

CEO James Garvey founded Self in 2015 after experiencing his own credit problems. Garvey said he believed he set up his credit cards for automatic payments, but that did not happen. When he realized his mistake a few months later, his credit score had dropped from 750 to 594, he said.

Garvey said the experience gave him a better understanding of the challenges millions of Americans face in building and maintaining credit, and he decided to develop tools to help people overcome those barriers.

“The latest injection of capital from Meritech and our other investors means Self can continue its mission of supporting our clients on their journey to create credit and savings and be financially healthy,” Garvey said. “Despite increased adversity, this year we have seen demand for our products increase as people seek to control their finances wherever possible. Fortunately, we are also seeing our clients keep their commitment to themselves by sticking to their plans. “

There are about 100 million people in the United States who have low credit scores or don’t have access to credit, according to Self. Bad credit or a lack of credit history can be barriers to renting an apartment or buying a car. Those who can get a loan with a low credit score are likely to pay much more interest.

With the Self Credit Builder account, consumers can tackle credit and savings without the need for a credit check or credit history. A serious investigation occurs when a consumer applies for a new line of credit and the creditor asks to examine the applicant’s credit report to determine the level of risk. Serious inquiries show up on credit reports and can affect credit scores.

The Self Visa credit card is a secure credit card that does not require a credit check and allows Self customers to build their security deposit in installments rather than a large initial deposit.

The company, headquartered at 515 Congress Ave., has 115 employees and plans to hire 50 to 60 more over the next 12 months.

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