For fast and easy personal loans, Fig is a competitive option – as long as you have good credit.
Fig offers quick and easy personal loans of up to $35,000, a fast online application process and funding in as little as one business day. The company promises no additional fees, no early repayment fees and fair interest rates starting at 8.99%.
Backed by Fairstone Bank, a tier-one bank and one of Canada’s largest providers of personal loans, Fig is trustworthy and reputable. The company says it’s landed over $135 million to its 9,000 customers, a majority of whom use their loans for debt consolidation. Its score of 4.7 out of 5 on Trustpilot backs up its claims and makes it one of the best-rated financial services
Fig Credit Builder has recently emerged as an intriguing new option for consumers looking to take out small, short-term loans With offerings like credit-builder loans and payday-style cash advances, Fig aims to provide financial assistance to those who may not qualify with traditional lenders
However, Fig is still a young company, and not much is known about their reliability or the risks of using their services. In this article, we’ll take an in-depth look at Fig Credit Builder to answer the key question – is it a legitimate lending platform that can benefit borrowers, or are there major red flags to be aware of?
An Overview of Fig Credit Builder
Founded in 2015, Fig Loans is the company behind the Fig Credit Builder lending platform. Fig’s loans are only available in a handful of states – California, Florida, Illinois, Missouri, Ohio, Texas, and Utah.
Fig offers two main loan products
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Credit-builder loans – These are installment loans from $300 up to $1,000. The term is one year, with a low APR around 30%. Fig reports payments to the credit bureaus, so these loans can help build your credit history.
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Emergency cash loans – Also called Fig Loans, these payday-style loans range from $200 to $500 for a term of 4 to 6 months. The APR is very high, starting at 176%! These are meant to provide fast cash in a financial emergency.
The Pros: Reasons Fig Could Be Legit
There are a few factors that point to Fig being a legitimate lender that could potentially help consumers
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Credit bureau reporting – Fig reports both types of loans to Equifax, Experian, and TransUnion. If payments are made on-time, Fig loans can positively contribute to your credit scores.
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Flexible payments – Fig allows you to choose the due date for payments to align with your pay schedule. There are no prepayment penalties if you pay off early.
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Fast funding – Fig promotes fast approval decisions and claims most borrowers receive funds within 1 business day. This can be helpful in emergency situations.
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No formal credit check – Fig states they won’t do a “hard pull” inquiry on your credit reports that would negatively impact your scores. However, they do claim to analyze income, debts, and banking history.
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Positive reviews – Fig currently has a rating of 4.8/5 on Trustpilot, with many reviews praising their loan process and customer service.
The Cons: Reasons to Be Wary of Fig
On the other hand, there are a few concerning factors about Fig Credit Builder that borrowers should keep in mind:
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Very high APRs – The triple-digit interest rates on Fig’s emergency cash loans are exceptionally high. These could easily trap borrowers in a cycle of debt.
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Limited transparency – Specific details on fees, eligibility criteria, and the loan approval process are lacking. More transparency would be reassuring.
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Mixed reviews – While Fig has many positive reviews, there are also many complaints about poor customer service, loan denials, and billing issues.
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Risks of payday-style loans – Fig’s emergency cash loans share similarities with risky payday and title loans, which consumer advocates warn against using.
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Limited reach – Fig only operates in 7 states, limiting its availability to borrowers across the U.S.
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Little financial education – Fig does not appear to offer much educational content to help consumers make wise borrowing decisions.
Key Factors to Determine if Fig is Legit for You
So is Fig Credit Builder ultimately a legitimate lending platform that can benefit borrowers? The answer depends on your specific financial situation and ability to meet the loan terms. Here are some key factors to consider:
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Your credit score – If you already have fair/good credit, you may not benefit much from Fig’s credit builder loan. With bad credit, it could help if you make all payments.
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Your budget – Can you realistically afford payments on a Fig loan? High APR emergency loans could be unaffordable.
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Your alternatives – Do you have better borrowing options through credit cards, friends/family, local banks, etc? Fig should be a last resort.
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Your state – Fig only operates in 7 states, so it’s not an option nationwide.
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Your repayment ability – If you’re facing financial hardship, taking on new loans with Fig could make things worse. Be sure you can make the payments.
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Your priorities – If your priority is just getting fast cash, Fig may work. But if you want to boost financial health long-term, other options like credit counseling or debt management plans may be better.
The Verdict: Approach Fig Loans With Caution
If you decide to borrow from Fig, be sure to read the fine print closely, understand the terms and true costs, and borrow conservatively. Fig’s loans should only be used as a absolute last resort, not a regular go-to option.
Approach offers from Fig Credit Builder with great caution. Their offerings may help in certain limited situations, but they don’t fix underlying financial issues. There are likely better borrowing alternatives through reputable banks, credit unions, peer-to-peer lenders, and financial counselors. Consider all your options before getting involved with a relatively new fintech lender like Fig.
Frequently Asked Questions (FAQs)
You will need a good credit score of at least 680 to be approved for a Fig personal loan. The best rates and terms go to customers with credit scores of 700 or higher.
Fig Financial Vs. easyfinancial
easyfinancial is a competing personal loan company that caters to Canadians with poor-to-fair credit. Promising to say yes when the banks say no, easyfinancial is likely to approve a loan no matter what your financial situation, while Fig prefers customers with good credit.
While easyfinancial may be more likely to approve you for a loan, it will come at a cost. Its unsecured personal loans max out at $20,000, compared with Fig’s $35,000 limit. Easyfinancial’s interest rates start at an astronomical 29.99%, compared with Fig’s starting rate of 8.99%.
Where easyfinancial offers an advantage over Fig is for secured loans, which Fig doesn’t offer. Easyfinancial offers home equity loans of up to $100,000 with interest rates starting at 9.99%, and auto loans of up to $50,000 with rates starting at 11.99%.
Fig Credit Builder Loan Review: Pros and Cons
FAQ
Is fig financial legitimate?
Fig Financial Inc. is BBB Accredited.
What credit score do you need for a Fig loan?
Fig Loans doesn’t have minimum credit score requirements, and its loans are geared toward borrowers who have bad or no credit but steady income.
What credit score do you need for FIG?
Unlike many lenders, Fig is upfront with its interest rates. You can check to see if you qualify for a personal loan rate within seconds and complete the application for a loan up to $35,000 within minutes. With Fig, you’ll need good credit to be approved (minimum score of 680) and they don’t offer secured loans.
Is credit Builder a good idea?
If you make regular on-time monthly payments, credit-builder loans are a good opportunity to improve your credit scores.