Founded in 2015, Fig Loans targets working-class Americans needing financial support. It emphasizes flexible payments, credit-building, and instant funding. This approach caters to those often overlooked by traditional banks due to credit issues.
Fig’s mission is to aid borrowers with limited credit access. Its offerings, which include personal and credit-builder loans, are intended for borrowers with bad or no credit history and provide quick financial relief and credit improvement.
Fig borrowers need fast funds but face challenges with traditional lenders. Fig Loans assists in immediate financial needs and credit building, but it’s crucial to consider its high APRs. Fig Loans should be a last resort, not a primary choice.
The financial lending platform Fig Credit Builder has drawn notice for its distinctive approach to emergency loans and credit building. But with a 4. After receiving an 8-star Trustpilot rating and 10 CFPB complaints in 2021, it is unclear if Fig Credit Builder is a trustworthy and advantageous choice or a costly trap for borrowers.
Let’s delve into the depths of Fig Credit Builder, examining its features, costs, and customer experiences to uncover the truth.
Fig Credit Builder: A Two-Sided Coin
Fig Credit Builder presents itself as a double-edged sword, offering both credit-building and emergency loan solutions.
Credit-building loans:
- Concept: Borrow a small amount (typically $300-$500) and pay it back over a year with a low APR (typically below 4%).
- Benefit: Consistent on-time payments can positively impact your credit score.
- Cost: One-time opening fee to cover initial costs.
Emergency loans:
- Concept: Borrow a small amount (typically $200-$500) for immediate needs with high APRs (starting at 176%).
- Benefit: Quick access to funds for emergencies.
- Cost: High APRs can lead to significant interest payments.
The Verdict: Legit, but Proceed with Caution
Fig Credit Builder is a legitimate company, reporting to major credit bureaus and transparent about fees and costs. However, its high APRs on emergency loans raise concerns, potentially trapping borrowers in a cycle of debt.
Here’s a breakdown of the pros and cons to help you decide if Fig Credit Builder is right for you:
Pros:
- Credit-building loans can boost your credit score.
- Emergency loans offer quick access to funds.
- Transparent about fees and costs.
- Reports to major credit bureaus.
Cons:
- High APRs on emergency loans can be costly.
- Limited loan amounts.
- Short repayment terms for emergency loans.
- No phone number for customer service.
Customer Experiences: A Mixed Bag
Fig Credit Builder boasts a 4.8-star rating on Trustpilot, with customers praising its ease of use and positive impact on their credit scores. However, negative reviews highlight issues with customer service, high interest rates, and difficulty accessing emergency funds.
Here’s a glimpse into what customers are saying:
Positive:
- “Fig Loans helped me raise my credit score by 50 points in just 6 months!” – Sarah K.
- “The process was quick and easy, and I received my loan funds within a few days.” – John D.
- “I appreciate that Fig Loans reports to all three credit bureaus.” – Emily R.
Negative:
- “The customer service is terrible. I tried calling them several times, but no one ever answered.” – Michael P.
- “The interest rates on the emergency loans are way too high. I ended up paying back almost double what I borrowed.” – Jessica L.
- “It was difficult to get approved for an emergency loan, even though I met all the requirements.” – David S.
Final Thoughts: Weigh Your Options Carefully
Fig Credit Builder can be a useful tool for building credit or accessing emergency funds, but it’s crucial to weigh the costs and risks carefully before taking out a loan.
Consider these factors before making a decision:
- Your credit score: If your credit score is already good, you may not need a credit-building loan.
- Your financial situation: Can you afford the high APRs on emergency loans?
- Your alternative options: Are there other ways to get the money you need without taking out a loan?
If you decide to use Fig Credit Builder, make sure you understand the terms and conditions of your loan agreement and pay close attention to the repayment schedule to avoid incurring unnecessary fees and interest charges.
Recall that maximizing the advantages of Fig Credit Builder and avoiding any potential pitfalls require responsible borrowing.
Who’s eligible for a Fig Loans credit builder loan?
A credit builder loan from Fig Loans is available to anyone wishing to start over or repair their credit history.
This loan is notable for not having a minimum credit score requirement, which allows people with bad credit or no credit history to apply. However, candidates must fulfill certain requirements, such as living in a state that qualifies and proving their financial stability with regular deposits.
Here’s a complete look at the eligibility criteria for Fig Loans’ credit builder loan.
| Requirement | Details |
| State of residence | California, Florida, Missouri, Ohio, Texas, and Utah |
| Minimum age | Not disclosed |
| Minimum credit score | None |
| Minimum income | Monthly deposits of at least $1,400 |
| Other requirements | Internet connection Online application capability Phone number Social Security number Government-issued photo ID Online banking |
Fig Loans personal loan FAQ
Yes, you can pay off a Fig Loans personal loan early without penalty. Early repayment can reduce the total interest paid over the life of the loan.
Paying off a Fig Loans credit builder loan early is also possible and does not incur penalties. Early repayment might reduce total interest costs and can help your credit score because it demonstrates financial responsibility.
Fig Credit Builder
FAQ
Does Fig loans help build credit?
Is Fig Loan a direct lender?
Is a credit builder loan a good idea?
How much will a credit builder loan raise my credit score?
Do fig loans help build credit?
Fig reports both types of loans to the three major consumer credit bureaus, which may help you build credit over time if you make payments as agreed. Here’s some more info about Fig loans. Fig’s personal loans — which it recommends for emergency needs — range from $300 to $750 with loan terms of four months to six months.
Is fig loans a legit company?
Fig Loans is a legitimate company that reports to Equifax, Experian and Transunion, the big three credit bureaus. It is transparent on fees, penalties and the maximum amount a loan could end up costing. These small loans with short terms might not be the best fit for many people, but they might be useful for those who need emergency funds quickly.
Should you pay back a fig Credit Builder loan early?
Fig says it may give you a discount if you pay back your loan early. Credit-builder loans, like secured credit cards, can help you build credit. So if you have no credit or bad credit, a credit-builder loan can be a good option. With the Fig credit-builder loan, you’ll make payments into a savings account for a year.
How much does a fig personal loan cost?
Fig’s personal loans — which it recommends for emergency needs — range from $300 to $750 with loan terms of four months to six months. Fig says it may give you a discount if you pay back your loan early. Credit-builder loans, like secured credit cards, can help you build credit.