Fig Loans Reviews - What Is It?
DO NOT USE Fig Loans!!! You Must Read This Review!
Fully Researched: Price, User Feedback and More!
Fig Loans is a new host of lenders who provide financial help to individuals who need a loan being in a hard situation or to improve their credit scores. Their maximum loans are $500 and they act as a bridge between a need and the person's next paycheck. Fig offers traditional loans and credit builder. These types of loans are traditionally provided by payday lenders who have different repayment schemes designed in such a way as to bury borrowers in debt for many months. APRs tend to be very high and not consumer friendly. Is Fig Loans a reliable solution for people in need? Does it offer consumer friendly terms? We will find answers to these questions but before this let us take a look at what is known about the company behind the service. Well, the company is based in Houston, Texas. It serves residents of the state according to the regulations and rules for lending companies in Texas. The founder of the company, Jeff Zhou, said in his interview that their main task is to provide loans to people who want to build their credit and need financial help.
The service can be used by those who have bad credit and credit scores between 300 and 550. They may need credit to build their credit scores. Will Fig Loans be of help in this situation? Let's take a look at our in-depth review of two types of loans offered by the company, these loans' rates and fees, and other helpful details. By the end of this review, you will be able to determine whether this is the right lending option for you. You can apply for the service through their official website. The process is said to take just a few minutes during which you will need to provide some information including your bank account info. Further we are going to find out whether the real clients of the company are pleased with their experience or not.
Customer Reviews - Does Fig Loans Really Work?
You can get two types of Loans from Fig: a traditional loan and a credit builder loan. In the first case, you receive money from a financial institution to which you will need to pay it back later. According to the official website, the company works with local lenders to find you a company who will give you the money you need. Maximum traditional loans reach $500 and have repayment terms of 4 months. Taking a short-term loan you may be interested in how much you will have to pay in fees. Payday lenders will inform you the fees and interest rates. Consumers with good credit scores are not expected to face such a situation and can get credit cards with normal interest rates. But customers with low-interest credit cards (Citi Diamond Preferred or Citi Simplicity) don't have the credit scores to get.
Who can benefit from Fig Loans? As our research shows, consumers with credit scores in the 400s and low 500s can gain from these loans because Fig's fees and rates are much lower than payday lenders. People with scores in that range have a chance to raise their credit scores by about 100 points through Fig's credit-builder loans. If you are thinking about making a plan with Fig Loans in order to increase your score and to be able to get a credit card, you should take a look at the real customer reviews available on third-party websites. Not all people consider Fig to be a great company and have some complaints. For example, the reps of the company are not comprehensive when it comes to reporting to credit. One customer reports that once he made a mistake and his payment went passed 30 days. It was an "honest" mistake, and the man tried to get it fixed with the company's credit reporting staff but he got nowhere. I seemed that cooperation with the staff was pointless, since it showed up as bad credit. Here are some other customers' testimonials.
"I am not satisfied with FigLoans, even though I liked them at first. In reality, this service is a kind of expensive. There were several cases when I couldn't make my payment. They could hardly help me. I am going to look for another alternative. My friend has something to offer."
"I had a loan with Fig loans and I paid them off. I usually had good communication with them. Then once I paid off the loan but I couldn't get another loan. They ignored my problem. This makes me not recommend them to anyone."
"I wonder why there are so many positive reviews about Fig Loans. I don't like them at all. All they did for me was totally destroying my credit rating (by -200 points). I was late with my payment only once. Stay away from this company!"
My Final Summary
Taking into account everything we have learnt about Fig Loans, this service doesn't appear to be a good option for everyone. The main downside to its loans is that they are available to residents of one state only - Texas. Another disadvantage is the fact that an APR is 28% for credit builder loans. This is a very high APR you will have to pay when compared to the competition. Another negative feature is that loan amounts are not enough for some users. Even though Fig claims that their credit builder loans provide a boost to borrowers with low credit scores (from 350 to 499), some customers reported that they faced significant decrease of their credit scores. Usually the reason for this was late payment. The service can be suitable for people with scores between 500 and 549 (the average increase is 47 points) but there are still certain risks. Fig Loans requires you to pay your first loan back before you can get a second one. But what should you do if you really need money? Traditional Payday lenders can provide you with a second loan, so that you will have to pay off both of your loans. The fees from Fig Loans appear to be quite high. Taking into account all advantages and disadvantages of the service, I cannot recommend Fig Loans to consumers.
Fig Loans Pricing and Rates
You need to know two things: when you are being charged for on-time payments and when you are being charged for late payments. The first case is also known as a credit access business (CAB). It connects lenders and consumers. You will have to pay Fig a CAB fee of about $0.40 for every borrowed dollar, which equals out to a monthly payment of about $32 or a yearly APR of 190%. The fees seem to be high. If you pay late on your loan payment, then you will face two things. First, you will have to pay a fee of 5% of your payment. Second, the interest rate on your loan will reach to 10%. According to Zhou, Fig's loans are associated with 28% APR. If your loan is $1,000, the interest will be $280 ($23 a month). These loans build your credit, so you will have to ask yourself whether you are ready to pay this money to see your credit score rise.