Fig is a Houston-based company that aims to provide alternative payday loans and helps people in improving their credit. There are mainly two types of consumer loans offered by Fig- a personal loan which is also known as Fig loan and a credit builder loan. Both types of loans are reported to the three main consumer credit bureaus which will help you build credit with time if you make payments without any default or delay. The loans are available in Texas, Illinois, Florida, Utah, Ohio, and Missouri.
Here is everything you need to know about Fig loans
The personal loan or FIG loan is ideal for emergency needs. It ranges from $300 to $750 and the tenure of the loan ranges from 4 months to 6 months. If you repay the loan early, you may get a discount.
Credit builder loans
The credit builder loan is like a secured credit card where you are allowed to build credit. If you have no credit history or bad credit, this loan is a great choice. You will make payments in the savings account for one year in this loan. At the end of the year, you will receive the entire money you paid in the account. All you need to do to build a credit history is to make timely payments to this account. Your credit score will not be checked when you apply. Additionally, other factors like your current outstanding loans and income will be analyzed.
Whenever you take a Fig personal loan, you will have to pay a high APR in triple digits. This shows that the loan is very expensive. The APR could trap you in a debt cycle if you cannot make the repayments. The loan could hurt your finances if you are unable to pay it back right away.
Debit card payment charges
It is possible to use the debit card to pay the Fig loan but you will have to consider the processing fee. You can also set up automatic withdrawals from the bank account to avoid this fee.
No late fees
One important aspect of the loan you should consider is that there are no late fees for the credit builder loans. However, if there is a payment that is 30 days overdue, the lender will close the loan and refund the principal amount you have paid after deducting the interest owed on the past due payment. This means Fig can report the loan as a closed account and not as a delinquent account.
If you opt for the credit builder loan, you will be required to pay the one-time account opening charge.
Should you go for a Fig Loan?
Firstly, Fig loans have a high APR and you should look for alternative options if possible. For example, if you need instant money to cover the repair costs of the car, it is best to use a credit card with a low APR. If there is no other option, a Fig loan could be a good choice than a payday loan. Since this is a high-interest loan, it should only be considered as a last resort. If you want to opt for a credit builder loan, you should consider a secured credit card as a wise choice for your financial goals.
Steps to apply for a Fig loan
If you have made up your mind about the loan and want to apply for one, you will need to reside in one of the six states it serves. You will have to have a bank account with three months of transaction history, a positive account balance, and income deposits of a minimum of $1400 per month. You should get the paychecks through direct deposit. The loan application procedure is simple and transparent. You need to provide your name, address, birth date, email address, and phone number.
Before you go ahead with a Fig loan, it is recommended to consider other lenders with lower APRs to make the loan more affordable.