4.8
7.8
Overall Score
Author: Kaitlyn Short
Fig Loans by FigTech is a Texas-based lender that offers payday alternative loans along with credit builder loans in eight states: California, Florida, Illinois, Missouri, New Mexico, Ohio, Texas, and Utah.
Fig Loans was founded in 2015 as a collaboration with the United Way of Greater Houston's THRIVE initiative. The company's aim is to create better, more affordable loan products accessible to low-income Americans with bad credit.
Fig Loans' business model is based on social responsibility. This results in more favorable loan terms, flexible payment schedules, and long-term goals for consumers that have bad credit. Two types of loans are available:
Keep reading for pros and cons, plus Fig Loan reviews from real customers.
Fig Loans does not have a minimum required credit score and does not require a traditional credit check.
Even though all Fig Loans installment loans are initially set up with scheduled monthly installments to be paid in four to six-month repayment terms, borrowers are not required to pay off their small loan in that time span.
The Fig Loans customer service team will alter payment schedules as necessary to better suit borrowers' budgets.
Customers can change their payment dates within one business day of their due date.
Because the company works with clients to avoid non-sufficient funds (NSF) fees, borrowers will never be charged a fee to change a payment date or for late payments. This is something that is hard to come by when compared to other payday loan lenders.
Reporting payments to the three main credit bureaus is the first step toward healthy credit history because it establishes a track record of good payments.
As borrowers repay their loan, Fig Loans will report the repayments to all three of the major credit bureaus: Equifax, Experian, and TransUnion.
Borrowers with poor credit will benefit as they pay off their Fig Loan, payments are reported to the credit bureaus. They can improve their credit score and become more financially stable for the future.
However, it's important to note that this repayment-reporting process can hurt borrowers' credit scores if they fail to make consistent on-time payments.
With Fig Loans, consumers can work on their credit score with a short-term traditional loan. Borrowers also have the opportunity to improve or repair their credit score through a longer-term credit builder loan, also known as a reverse loan.
If consumers can't get approved by a standard credit card issuer, they likely won't be able to get approved for an unsecured loan or most other types of loans without a deposit or collateral.
The U.S. Consumer Financial Protection Bureau (CFPB) recommends that people establish a credit report or build credit with three credit options: a secured credit card, a retail credit card, or a credit builder loan, like the one offered by Fig Loans.
Here's how the Fig Credit Builder Loans process works:
There are no late fees with the credit builder loan. If a borrower's monthly payment is 29 days past due, Fig Loans will close the account and release the funds back to the borrower. That way, borrowers can build good credit when they pay monthly, but their credit rating can't be negatively affected by the loan.
When closed at 29 days, the lender doesn't have to provide an unpaid or late payment report to the credit reporting agencies, so the loan only adds positive credit history, rather than hurting it.
These types of loans are not designed to be a source of fast cash. The process does take time, and people needing immediate money should look towards the standard Fig Loan option.
Fig Loans does not charge borrowers an early repayment fee.
In fact, those who repay their full loan balance prior to the pre-set loan term will see savings, and all unearned interest will be waived.
Fig Loans has been known to provide quality customer service. All service representatives are available by phone, email, or text.
Within minutes of contact, borrowers will be connected to an actual Fig Loans staff representative.
Fig Loans is the first FinTech company to be certified as both a B Corporation, in 2017, and as a Community Development Financial Institution (CDFI), in 2019.
This means that Fig Loans is a responsible lender with policies that work with, not against low-income and underserved borrowers with bad credit.
Certified B Corporations balance "purpose and profit" by meeting high social responsibility, environmental performance, public transparency, and legal accountability standards.
CDFIs are certified by the United States Treasury Department's Community Development Financial Institutions Fund. This distinction is reserved for financial service providers that promote community development and serve low-income target markets. Most of these are community organizations like nonprofits and community credit unions.
The majority of Fig Loans reviews are 5-star, which is particularly unique in the payday loan industry. This alone suggests that the company is a transparent and trustworthy lender.
Satisfied customers most frequently highlight the following:
In addition, Fig Loans consistently responds to reviews, demonstrating that it cares about its customers and wants to ensure a successful borrowing experience.
Currently, Fig Loans' personal loan services are only available in six states, with varying rates and terms*:
California | Florida | Illinois | Missouri | New Mexico | Ohio | Texas | Utah | |
APR | 211.00% | 208.56% | 35.99% | 199.00% | 175.00% | 199.00% | 199.00% | 199.00% |
Loan terms | 1 month | 84 days | 4 months | 4 months | 4 months | 6 months | 4 months | 6 months |
Loan amounts | $50–$150 | $300–$500 | $50–$100 | $300–$1,000 | $300–$1,000 | $200–$300 | $300–$1,000 | $300–$500 |
This lack of state availability limits the number of consumers with bad credit who can gain access to this company's beneficial lending services.
*Important note: Rates and terms may vary from what is displayed in the table.
To be eligible for a Fig Loans installment loan, one must live in one of the eight states (CA, FL, IL, MO, NM, OH, TX, or UT), and meet the following requirements:
The company's loan application process requires that consumers enter basic information and verifying their bank account with Plaid.
The potential borrower's payment history, income information, and previous loan information are used to determine loan amounts and approval, rather than a credit score.
Fig Loans' installment loans carry an annual percentage rate (APR) ranging from 36 to 190 percent. When compared to mainstream personal loans and traditional loan standards, this is rather high.
The company's introductory loan APRs start on the higher end of the spectrum and decrease as borrowers establish a good history of making loan payments on their small-dollar loans.
As consumers transition into the secondary builder loan, loan rates and fees change because the loan has a different structure and purpose.
However, Fig Loans' interest rates are still low compared to other payday loan lenders in terms of online or in-store loans, auto title loans, and consumer installment loans, which may be the only other lending options available to people with bad credit who need to gain access to emergency cash.
The majority of payday lenders often charge over 400 percent APR and in some states, it can be over 1,000 percent APR.
Unfortunately, Fig Loans' financial services are not meant for people that need to borrow a large portion of money all at once.
Installment-based Fig Loans are small-dollar, short-term loans that are designed to help those who need fast cash, not for those who are looking for long-term financial solutions.
Customers are not allowed to borrow more than $500 at a time. This is a relatively low maximum loan amount, which can be constraining for people who need to borrow a bigger loan amount because they are experiencing financial distress.
Additionally, Fig Credit Builder Loans are meant to help build financial stability for long-term credit success, but it is a secured savings account, which is not designed as a quick cash advance or emergencies or medical bills.
There is a 3 percent fee charged if borrowers make a payment with their debit card, rather than paying directly from their checking account.
Keep in mind that most other online payday loan lenders or in-store payday lenders don't even let borrowers make debt payments at all with a debit card. This is a great plus for payment convenience.
The Fig Loans is mission is to help working-class Americans build credit and solve urgent cash needs.
Fig Loans’ financial products and services offer several attractive policies when it comes to short-term lending for people who need quick cash and who have no credit or poor credit: flexible repayment schedules, no late fees, customer support, credit building opportunities, and an early repayment discount.
This payday lender is a good option for consumers who live in Texas, Ohio, Illinois, Utah, Missouri, or Florida, have subprime credit scores, and do not wish to borrow more than $500 at once.
Fig Loans is one of the few lenders that offer socially responsible loan terms that help people transition from payday-only credit access to traditional loan options at mainstream banks or financial institutions.
The Fig Credit Builder is a huge asset. If you are credit-invisible or unscored, due to stale credit history, it can be hard to find a lender that will help you establish credit to eventually earn a positive credit report and a good FICO credit score.
We recommend that you read customer reviews and visit Fig Loans’ main website to learn more about the company’s products and services.
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