At times, all you need is a small financial boost to get you out of a rut. And at such times, Fig Loans could be the lender for you. Specializing in little dollar loans, the lender seeks to offer flexibility and simplicity to users.
However, before you go out and take a loan from the provider, there are some important considerations you may need to make.
In our thorough analysis of the platform, we seek to uncover everything you need to know about the service. Read on so as to be in a position to make an informed decision when choosing whether or not to sign up.
- 1 What is Fig Loans?
- 2 Pros and Cons of a Fig Loans Loan
- 3 How does a Fig Loans loan work?
- 4 What loan products does Fig Loans offer?
- 5 What other store services does Fig Loans offer?
- 6 Fig Loans Account Creation and Borrowing Process
- 7 Eligibility Criteria for Fig Loans Loan
- 8 Information Borrowers Need to Provide to Get Fig Loans Loan
- 9 What states are accepted for Fig Loans loans?
- 10 What are Fig Loans loan borrowing costs?
- 11 Fig Loans Customer Support
- 12 Is it safe to borrow from Fig Loans?
- 13 Fig Loans Review Verdict
- 14 FAQ
What is Fig Loans?
Fig Loans started out in Houston, Texas in 2015 and is a direct lending service offered by Fig Tech Inc. It currently operates from Sugarland, Texas and offers services in five states.
Originally, it started out as a collaboration between United Way Thrive and Fig. At the time, the founders of the company made cold calls to 50 non-profits to find out more about payday loans in Texas.
Only Jackie from United Way picked the call, starting off a healthy partnership with the representatives from Fig. Initially, they worked together with Family Houston and started out offering installment loans in Texas.
The lender’s flexible repayment policy had its origins back then and continues to be a hallmark of the service.
Pros and Cons of a Fig Loans Loan
How does a Fig Loans loan work?
At the heart of Fig Loans philosophy is a mission to offer financial products that meet both its users’ immediate financial needs and secure their financial future. The idea behind it is to provide the kind of loan you would get from friends and family.
It thus operates on a transparent pricing model and has no hidden fees. Furthermore, the service provider offers discounts to customers who make early repayments. Their reasoning is that good credit decisions deserve a reward.
The lender also offers a great level of flexibility, never charging users for late payments or any other unexpected developments. It supports custom payment plans where necessary and provides a number of options for reaching customer support.
And to help customers improve their credit rating, they report to the three major credit bureaus. Ultimately, their objective is to help users reach financial freedom by creating good history that can allow them to access regular financing options.
The APRs are super friendly right from the onset, and could be equivalent to less than $4 for every $100 that you borrow. That is a much lower rate than you are likely to find with any other short term lender. And after the repayment of your first loan, you may qualify for a 20% discount on almost every subsequent loan.
Another differentiating factor is that the lender will consider your application on the basis of the personal information you provide. They will also look at the transaction history on the bank account that you provide. Though it considers all applicants, you stand a higher chance of qualifying if your credit score is 450 or above.
The only real downside to the service provider has to do with the fact that it offers low ceiling loan amounts. It thus may not be ideal for meeting the needs of all possible applicants. It also has limited reach as it only serves five states.
What loan products does Fig Loans offer?
Fig Loans offers four main loan products at present. These include:
- Fig Loan
This is the flagship loan offered on the platform and it provides $300 to $750 with loan terms ranging from 4 to 6 months. The period is extendable and does not require any additional fee or interest.
It is ideal for someone who has an emergency expense or wants to refinance a high interest loan such as a payday loan.
As the name implies, the essence of this loan is to assist borrowers to build credit. It is therefore cheaper than a regular loan. If you successfully apply for this loan, you will get the funds in an escrow account.
You will then need to make repayments as you would with any other loan, but will only be able to access the amount from escrow at the end of the repayment period. These loans are typically much larger than other options from the lender. Consequently, they maximize their potential benefits on your credit at the end of the day.
Consider this loan if you do not need funds immediately and can make regular monthly repayments. Note that any late payments will reflect on your rating with the three major credit bureaus. But you can make prepayment at any time to access the escrowed funds.
Also referred to as supercharging non-profit lending, this product is a partnership between fig and non-profit community organizations. The idea of the product is to help such organizations assist the communities under their charge.
It allows the organizations to access top of the range services to provide Wall Street class service to their patrons. The organizations can then lend directly to their communities as they understand them best.
However, the program is still in limited beta in Texas and will expand to other states sometime in 2019.
What other store services does Fig Loans offer?
Fig Loans does not offer any other store services at present.
Fig Loans Account Creation and Borrowing Process
Here is how to create an account on the platform and start borrowing:
1.Visit the Fig Loans website and click “Apply” then select your state from the list.
Next, select the loan amount that you want to access. On your first application, the cap will be $300.
It will also show you the repayment period, the amount you can expect to repay per installment and the applicable APR.
2. Click “Save” to start registration process where you need to enter your email and password, as well as a referral code if you have one.
If you have been referred by an existing user, you both qualify for a $10 discount on your loan repayment.
3. Once you submit your registration details, you will get access to the customer disclosures. Read and agree to them then click “Submit.”
On the next step, you need to enter personal information which includes your social security number and bank details.
4. Next, review and accept the loan terms and conditions, which will be specific to your application then submit your application.
5. The team will take one business day to assess the application and give an email notification showing the decision they reach.
Remember to stay on top of your repayments or risk damaging your credit score. Though there are no fees for late payment, good repayment habits will contribute to a good credit score on the major bureaus.
Eligibility Criteria for Fig Loans Loan
Fig has one of the most easily accessible qualification criteria for its applicants. Here are the requirements you need to meet:
- Be a resident of one of the states in which it provides services
- Have a valid bank account
- Be at least 18 years of age
- Not be a covered borrower under the Military Act
- Have a regular income source
- Receive paychecks via direct deposit
- Have a traditional bank account in your name, with at least 90 days history
Information Borrowers Need to Provide to Get Fig Loans Loan
Here are some of the details you will need to provide when applying for any of the loans on the platform:
- Email address
- Social security number
- Verification of bank account
What states are accepted for Fig Loans loans?
Fig Loans is working to extend its services to other states, but at the moment, these are the only states it covers:
What are Fig Loans loan borrowing costs?
Fig loans outlines its interest rate system clearly on the website showing the range one can expect to pay according to circumstances. Here is the layout for its flagship loan product:
- First loan – 176% to 190%
- Second loan – 176% to 190%
- Third loan – 156% to 170%
- Fourth loan – 136% to 150%
- Fifth loan – 106% to 119%
- Sixth loan – 76% to 89%
- For credit builder loans – 28% APR
However, the site points out that the actual APR may vary according to your repayment history and other factors.
Fig Loans Customer Support
The lender’s customer support has sparkling reviews online from happy customers. Customers have lots of avenues through which they can reach support. These include text message, phone, email and online chat.
Customers also have the opportunity to make the changes they need either online or via text message. Using this feature, it is possible to get a custom repayment plan.
Based on the reliability of its customer support, this is one of the few short-term lenders that are highly recommended by past and present customers.
Is it safe to borrow from Fig Loans?
Yes. It is safe to borrow from Fig Loans. The lender does not require a lot of sensitive personal information from borrowers. Additionally, its site makes use of standard industry security protocol to protect the information under its charge.
There have been no accounts of users encountering any safety concerns when dealing with the lender.
Fig Loans Review Verdict
Fig Loans is a refreshing deviation from the norm in as far as short-term lenders are concerned. Everything about it has a focus on the customer experience and on meeting user needs. While most other little dollar lenders seem to prey on those with poor or no credit histories, this one is out to help.
It does not charge origination or late payment fees and encourages healthy credit habits by incentivizing early payments. The site allows struggling borrowers to seek reprieve by suggesting custom repayment plans.
Its APRs are among the lowest in this category of lenders and the customer support system is above par in more ways than one. Overall, this is one of the best lenders for times when you need a short-term financial fix.
It is only unfortunate that the services are available in only five states and that the loan amounts are so low. Otherwise, everything else about the service is excellent.
Yes, the lender does not look at the traditional credit score. Rather, it assesses your ability to repay on the basis of your existing loans, bank account and income. This is because the lender will not check your credit history when assessing your loan application. Rather, it will make a decision based on the accuracy of the information that you submit during the application process. And that will determine your ability to repay the loan if approved. Basically, it involves authorizing your bank to share your account statement with the lender. It does not however link your bank account to the lender’s system. And the lender does not access your login information. The lender offers flexibility to borrowers, by providing free payment extensions. They can even allow you to split the payment in half if that is what you need to keep up with payments. Yes. You can use your debit card to make repayments. Note however that additional charges may apply if you choose this option.
Yes, the lender does not look at the traditional credit score. Rather, it assesses your ability to repay on the basis of your existing loans, bank account and income.
This is because the lender will not check your credit history when assessing your loan application. Rather, it will make a decision based on the accuracy of the information that you submit during the application process. And that will determine your ability to repay the loan if approved.
Basically, it involves authorizing your bank to share your account statement with the lender. It does not however link your bank account to the lender’s system. And the lender does not access your login information.
The lender offers flexibility to borrowers, by providing free payment extensions. They can even allow you to split the payment in half if that is what you need to keep up with payments.
Yes. You can use your debit card to make repayments. Note however that additional charges may apply if you choose this option.