Our Thoughts on Fig Personal Loans
Fig personal loans are a payday loan alternative with loans up to $500 depending on your state, and repayment periods of six months or less. Fig only offers loans in California, Florida, Missouri, Ohio, Texas and Utah. Due to its annual percentage rates (APRs), you’re likely better off avoiding Fig if you can help it.
Effective interest rates for Fig loans are around 200% APR, which is much higher than the typical credit card, personal loan or home equity loan. They’re better than payday loans, which are notorious for charging outrageous costs to borrowers who have poor credit and few borrowing options — but not by much.
Generally, these loans are not recommended if you can qualify for a more traditional personal loan. (Fig did not respond to a request for comment.) That said, these loans might be a good option if they can help you avoid an eviction or foreclosure.
Pros and Cons of Fig Personal Loans
If you’re interested in understanding more about how Fig loans could help or hurt your finances, here’s a look at their top pros and cons.
Who Are Fig Personal Loans Best For?
Fig loans could be a reasonable option in limited circumstances. If you have bad credit and need funds to get you through a financial emergency, Fig loans may be a viable choice. There’s no credit check required.
Due to the high costs, they’re far from ideal. For example, the borrowing cost with Fig is more than six times higher than a credit card at 30% APR. You’ll likely find a lower-cost option if you have fair credit or better.
Because your payments are reported to major credit bureaus as installment loans, Fig loans can help you build credit if you always pay on time.
How To Get a Fig Personal Loan
Getting a personal loan is reasonably straightforward. Start by going to the Fig website and choosing your state. Then, move the slider to your desired loan amount and review the repayment terms and costs. If you like what you see, click “Apply Now” to continue.
Application Process
- Create your Fig account: As with other websites and apps, you must enter your email and choose a password. Remember to follow cybersecurity best practices and use a unique password not used anywhere else.
- Agree to disclosures: Next, agree to Fig’s terms and conditions by accepting the disclosures. Review the details carefully, as it’s a legally binding agreement.
- Submit personal information: If you agree with the loan terms, your next step is to enter your personal contact and financial information. You must submit your Social Security number, among other personal details, and link your bank account using Plaid – a software service used to connect existing bank details to a new financial account.
Approval and Funding
To approve your loan, Fig examines the activity in your bank account. Rather than focus completely on your credit, Fig checks your income history, such as direct deposits from an employer, and looks for problems in your accounts like returned checks and insufficient funds fees. Fig also uses identity verification and information from your credit report, including current outstanding loans and balances.
According to Fig, 94% of borrowers get funds the next business day after applying, and almost all users receive funds within three business days. Depending on your needs, you can opt for instant funding to get funds within the hour. Fast funding is a perk of choosing Fig over traditional loans.
Fig Personal Loans Reviews
Fig earns generally positive reviews from past customers. Praise focuses on fast loan applications and loan funding. Complaints mention trouble with online systems and trouble after missed payments.
Here are a few Fig reviews from current and past customers:
“The communication is great and they will work with you if you’re in a bind. With on-time payments you have the opportunity to rebuild your credit score. I highly recommend!”
—Felicia, Oct. 16, 2023, Trustpilot
“If you are in a bind and need some help then I would recommend Fig Loans. However, beware of using them a lot. These types of loans can get you into a lot of financial trouble. If you do use them try to pay it back right away to avoid high interest and fees.”
—Darlene, Sept. 12, 2022, Trustpilot
“Fig offers extensions on due dates but DOES NOT tell you by doing so, they report it as late to your credit. They also showed it as unpaid for almost a month, even though it was paid on my extended due date. This dropped my FICO 54 points!!! Now they just deny me.”
—Malanie W., Sept. 13, 2023, Trustpilot
The lender did not respond to a request for comment.
Eligibility Requirements for Fig Personal Loans
Unlike many traditional lenders, Fig focuses on bank account activity when approving new loans.
Credit Score and Financial History
Your credit score isn’t the primary factor for a Fig loan, but your financial history determines if you can repay the loan. Fig checks for at least three months of history with your primary bank account with consistent direct deposits and limited non-sufficient funds (NSF) fees and returned checks.
Income and Employment
Fig prefers customers with $1,400 or more of monthly direct deposits. If you’re not employed with this minimum income level, you may struggle to get approved. Fig does not consider job offers or new jobs where you have not yet been paid.
Fig Personal Loans Usage Rules
Fig doesn’t list any specific restrictions for personal loan funds once approved. Due to loan size restrictions, these loans are often best used for emergency financial needs, including rent or mortgage payments, car repairs, and other surprise bills.
It’s best to avoid high-interest debt for vacations, holiday gifts or other spending that’s not critical to your health, safety and living situation.
Fig Personal Loans Fees and Penalties
Fig uses an all-in model to show monthly payments for the life of the loan. There are no late fees or early repayment penalties. In fact, you may get a discount on your loan if you’re able to repay it early. Discounts depend on how early you repay the loan and the size of the loan.
Fig displays your total loan costs before you apply. You can see your monthly payment and APR before moving on to the application process.
How Fig Compares to Other Lenders
Compared to a standard payday loan provider, Fig is often the better choice. But while it’s a good payday loan alternative, it’s much more expensive than most other personal loans.
LightStream is our top choice overall for personal loans. That’s because LightStream considers your credit score and financial history, and if you have a high credit score, you can get extremely competitive interest rates. The highest APR offered by LightStream (25.49%, as of this writing) is still significantly less than you would pay with Fig. You can also borrow much more with LightStream, with loans from $5,000 to $100,000.
LightStream doesn’t charge any origination, late or prepayment fees, but you’ll likely need good credit for approval. With its unique so-called “Rate Beat” program, LightStream guarantees the lowest rate by offering to give you a rate 0.10 percentage points lower than an offer you’ve qualified for elsewhere.
SoFi personal loans are our top choice for best customer service among personal lenders. SoFi offers up to $100,000 with rates far lower (8.99% to 25.81% currently) than you’ll get with Fig, but you’ll also need better credit. SoFi personal loans come with no origination, prepayment or late fees.
A unique feature of SoFi loans is unemployment protection. If you lose your job, SoFi will modify your payments and offer support to help you find a new job. You can find your rate in as little as 60 seconds, with same-day funding available in some cases.
PenFed is a credit union open to nearly all legal U.S. residents. While you need to be a member to receive a personal loan, interest rates are very competitive (7.99% to 17.99%) and there are no origination or prepayment fees. It’s our top pick for small personal loans.
The Bottom Line
Fig personal loans aim to be a good alternative to payday loans. Compared to loans that can charge 500% APR or more, 200% seems like a bargain. But compared to personal loans with rates around 10% to 20%, it’s still very costly. When considering a loan from Fig or any other lender, consider your financial situation, why you need the funds and your ability to repay the loan as agreed.
How We Rate Fig Personal Loans
Our team put together a comprehensive 100-point rating system to evaluate personal loan companies. We gathered data points from 28 of the most prominent lenders in the U.S. and analyzed disclosures, licensing documents, sample loan agreements, marketing materials and websites. Our rating system takes into account four broad categories.
- Affordability (35%): How expensive each company’s loans are to pay back.
- Loan features (35%): The breadth of loan terms and features available to prospective customers.
- Customer experience (20%): Ease of application, prequalification and customer service interactions.
- Company reputation (10%): An exploration of lenders’ Better Business Bureau (BBB) files, customer reviews and outstanding regulatory actions.
| Affordability | 15/35 |
| Loan features | 26/35 |
| Customer experience | 10/20 |
| Company reputation | 5/10 |
| Total | 56/100 |
Our top-rated lenders may not be the best fit for all borrowers. To learn more, read our full personal loans methodology.
Frequently Asked Questions About Fig Personal Loans
Fig doesn’t use credit scores to approve personal loans. Instead, the company reviews at least three months of transactions in a linked bank account to verify your income and ensure you don’t regularly pay overdraft fees or bounce checks.
If you have at least $1,400 in monthly income and keep your checking account in good standing, you should have an easy time getting approved in most cases.
You need to demonstrate at least $1,400 in direct deposits monthly to qualify for a Fig loan. Depending on your taxes and other withholdings, the minimum salary varies.
Fig personal loans may be approved and funded the same day you apply in some cases. The typical user receives funds the next business day.
Editor’s Note: Before making significant financial decisions, consider reviewing your options with someone you trust, such as a financial adviser, credit counselor or financial professional, since every person’s situation and needs are different.
If you have questions about this page, please reach out to our editors at editors@marketwatchguides.com.