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Loans Like Fig Loans®: Are They the Best Choice?

Loans Like Fig Loans

ju We have all faced financial challenges before and sometimes a loan may be the only option to help get funds into your bank account again. When searching for online loan options, you may have come across Fig Loans. Fig Loans provides online Payday loan alternatives in a few different states and credit builder loan options in Texas. 

However, how do you know if these loans are right for you and if they are the best choice? Continue reading to learn more about Fig loans along with alternative options you can look into. 

Why Do Personal Loans Work Well For Emergencies?

Emergencies can happen to anyone and when they do a personal loan can work well to help pay for them. There are a few reasons why these loan types may work well for unexpected expenses. Here are some qualities of a personal loan that make them useful for emergencies:

  • The Loan Amounts Can Range Quite a Bit — Personal loan amounts can range from a few hundred dollars up to a few thousand, making them useful for a large or small expense. 
  • The Repayment Terms Can Be Flexible — The repayment terms with personal loans can range between a few months up to a few years depending on the lender that you choose to work with. Flexible repayment may not be something you think about right away, but it is important. The last thing you want to do is take care of a financial emergency and then have trouble repaying your loan. 
  • With the Right Lender You May Be Able to Apply for a Loan Quickly — Speed is essential during an emergency and a personal loan with the right lender can provide that!
  • Personal Loans Can Be Used for Almost Any Expense — Some loan options can only be used for a specific purpose such as auto loans or a mortgage, however, a personal loan can be used for almost any emergency situation! 

What Does the Typical Personal Loan Process Look Like? 

If you have never applied for a personal loan before, you may be curious about what the application process will look like. Typically, the personal loan application will entail a process like this:

  • Find a Lender You Want to Work With — The first step is to find a personal loan lender that you want to work with. You can choose traditional institutions like banks or credit unions, but you can also look at online lenders that can be a little more flexible and sometimes faster. 
  • Fill Out a Loan Application — Once you find a lender you want to work with, you will have to begin a personal loan application. With some places you may have to do this in-person. However, in most cases, you should be able to complete your application online. 
  • Verify Important Information — Next, you will need to verify the information from your personal loan application. This will include important information such as your income, ability to repay the loan, and your identity. In some cases, personal loan documentation may be required, however, some lenders may have that as a part of their application. 
  • Find Out About Approval  Once you submit your application, all that is required is to find out about approval. Most lenders should respond to you pretty quickly if not right away. However, in some cases, you may have to wait a few days.
  • Once Approved for a Personal Loan Go Over the Loan Agreement — The next step is to go over the loan agreement, this is crucial and you do not want to miss this step if possible. This will have all your important information regarding the loan including payment schedules and terms that you cannot break while repaying your loan. 
  • Sign the Loan Agreement  This is a crucial step of the process, you should carefully review the loan agreement as it will have the details about everything about your loan. If everything looks good, then all there is to do is sign the loan agreement and choose a way to get funding. 
  • Get the Funds  Depending on the lender you are working with you may have a few options to receive approved funds. One popular option is to have the funds sent to your bank account automatically. You may also be able to pick up your funds at a retail location or have the funds mailed directly to you as a check. 

Personal Loans as a Payday Loan Alternative 

Payday loans are types of bad credit installment loans that help borrowers with low credit scores get funding. You likely won’t find these bad credit loans with financial institutions such as credit unions or banks but will have to look at indirect or direct lenders online. 

Payday loansmay seem like a convenient option for borrowers with poor credit history, but they can come with severe drawbacks. Payday loans can come with a high cost and usually need to be repaid in just a few weeks—usually two weeks. 

Because of this, a payday loan can quickly lead to a cycle of debt. Some states prohibit payday loans altogether. The good news is that personal loans are a great alternative to payday loans, as there are many bad credit personal loans that you can look into. However, unlike the short term repayment options that a payday loan may have, a personal loan may come with more time to repay and larger loan amounts. And so, if you are deciding between personal installment and payday loans, you’ll find that personal loans can have many more benefits.

Finding The Right Personal Loan

There are many types of personal loans out there and so, it may be a little bit confusing when trying to find the right option for you. The right personal loan for you might not be the right choice for another person, and this is because everyone’s needs and budgets may different from one another. However, there may be a few universal factors that you may want to look at in order to find the right personal loans for you: 

The Lender You Might Be Working With 

The lender is an important part of the loan process to pay attention to. First and foremost, even before you apply for a personal loan, you will need to make sure that your lender is legitimate, especially when applying for a loan online. There are several personal loan scams online, and so even before you apply you should make sure that your lender is legitimate. 

The good news is that recognizing personal loan scams online can be easy as long as you know what to look for. Once you know that a lender is legitimate, you can then look into their policies and past customer reviews to get a better idea of how they serve their customers.

Loan Amount

One thing to consider with a personal loan is whether the loan amount you are applying for will be enough money to cover your emergency expense. Juggling multiple loans can make things extremely complicated and add to the cost of borrowing money. And so, it may be best to only take out one loan at a time if possible. 

The Repayment Terms of the Loan

The repayment terms of a loan are another important factor that will help you determine the best personal loan for your situation. Repayment terms of a loan can encompass a few different things including:

  • The monthly payment amount.
  • The due date of your payments every month.
  • Late fees (if any).
  • Prepayment penalties (if any).
  • Default terms.
  • The length of the loan. 

Length of The Repayment Term

How long or short your personal loan terms are is something you should pay attention to. When borrowing the same amount with a similar interest rate, the longer your loan the less you may have to pay every month but the more you will pay on interest overtime. While a shorter loan will mean paying more each month but less interest over time. When looking for personal loans, you may find more flexibility with loan lengths when working with online lenders. 

Interest Rates 

The interest rate may be the most expensive part of any loan, and so it is important to pay attention to that. Your interest rates with a personal loan will be highly dependent on your credit scores and credit history. The better your credit score the better interest rate you may get. While borrowers with bad credit may get higher interest rates on their loans. With that in mind it is important to compare your options to get the best deal.

The APR of the Loan 

The APR or annual percentage rate is the total cost of the loan including interest rate and fees. This is an extremely important part of choosing a personal loan, as it will determine the total amount you will have to pay for your loan.

How Do I Get the Best Interest Rates and Repayment Terms on a Personal Loan?

If you are searching for a personal loan, your first question may be how you can get the best terms. Your loan’s interest rate and repayment terms will be largely determined by your credit score. If you have bad credit, then you may be discouraged about the terms you will get, however, the good news is that there are several things you can do to improve your credit score, here are some tips:

Make Your Monthly Payments on Time

One of the most helpful things you can do for your credit score is to make your monthly payments on time. Your credit accounts will likely be reported to at least one of the major credit bureaus. And because payment history is the largest factor that impacts credit scores, paying your bills on time can be extremely helpful for bad credit borrowers. On the other hand, missing payments can hurt your credit scores and may remain on your credit report for up to seven years. 

Pay off Debt Quickly

This is a huge factor to consider when trying to improve or maintain credit. When paying off debt it will be helpful to pay more than the minimum amount due. When trying to pay off a loan amount quickly, many people condense debt through debt consolidation loans. However, there are other debt repayment strategies out there that can also work such as the snowball or avalanche method. 

Having a Balanced Open Credit-to-Debt Ratio

This is an important part of a credit score. Oftentimes many people do not know about this impacting their credit score, but it does, and the impact is huge. The credit to debt ratio is simply the amount of debt a person has to the amount of open credit. Here are some simple ways to keep this ratio balanced. 

  • Leave Paid off Credit Cards and Accounts Open — Even after credit cards or credit accounts are paid off they should be left open. 
  • Monitor Credit Accounts — Sometimes fraud can happen or mistakes can be made by a lender, and so it is important to take the initiative and monitor credit accounts yourself.
  • Avoid Maxing out Credit Accounts — When trying to improve or maintain a credit score it is important to try and avoid using only one credit account for purchases, instead try using debit, cash or other forms of credit to avoid maxing out credit lines. 

Learn About Budgeting

Creating a budget can help a person control their finances and may help with managing debt/improving a credit score. 

Avoid Hard Inquiries

Hard credit checks are inquiries done by lenders when a person is looking to get additional forms of credit. This may negatively impact a credit score if done too often. On the other hand, a soft credit pull or a soft credit check shouldn’t negatively impact your credit scores or credit history. 

If you don’t have the time it takes to work on your credit history or scores, you can look into a co-signer or co-borrower with a good credit score. You can add them  to your personal loan application to potentially get a better interest rate. However, adding a co-signer or co-borrower should be a decision that you really think about as there are pros and cons with the process. 

A Break Down of the Factors that Make Up a Credit Score

There are many parts that make up a credit score and it may be helpful to understand them when trying to understand finances in general. Here are the categories that make up a credit score along with the weight that they have on the score itself: 

  • Payment History — This makes up about 35% of a person’s credit history. This includes all payments that a person has made or not made toward their credit accounts. 
  • Amount of Debt —The amount of debt a person has makes up about 30% of the credit score. In other words this is the amount of credit that a person has already used and needs to pay back.
  • Age of Credit Accounts — This factor makes up about 15% of a credit score. This is something that most people have little control over, other than making sure not to close old credit accounts. 
  • Variety of Credit Accounts — This will make up about 10% of a person’s credit score. Having a variety of accounts may take the average person a few years. 
  • New Credit Account and Account Inquiries — This makes up about 10% of a credit score. When applying for new credit, lenders will check a credit score and this can actually negatively impact it, so it is important to keep that in mind. 

Loans like Fig Loans : What You Need to Know

Fig Loans is an online lender that is an alternative to payday lenders. In addition to their installment loans, Fig Loans offers credit builder loan options. Credit builder loans are much different from traditional loans. Instead of getting the funds upfront, you will have to make monthly payments to a lender that will be reported to the credit bureaus (with Fig Loans, they report to all three major credit bureaus). This payment history can help build credit. 

Currently Fig Loans offers loan options in Texas, Illinois, Missouri, Ohio, Utah, Florida, and New Mexico.

How Do Payday Loan Alternatives Work With Fig Loans?

With Fig Loans you could get between $300 and $700 with their payday day loan alternative option. Loan terms can range between 4 to 6 months. Fig Loans say that they offer extensions if borrowers need them without fees for up to 28 days. If approved these funds may be deposited on the next business day for these installment loan options. 

More Information on How The Credit Builder Loan Options Work?

Fig Loans does not provide loan amount ranges for their credit builder loan options. However, they do explain that just like their standard loans, the borrower will have to make steady monthly payments for their credit builder loan, which will be reported to the credit bureaus. The funds from these loans will be stored with a third party. 

Who Are Fig Loans For? 

Figs standard loan options are best suited for borrowers who don’t have the best credit history, need a few hundred dollars and don’t want to pursue payday loans. One thing to keep in mind is that these are short-term loans. 

How Does the Application Process Work With Fig Loans?

The application process with Fig Loans can be done online and takes a few minutes. You’ll have to add some personal information about yourself and your finances. Once approved, the funds can be sent to you. 

CreditNinja: How Does it Compare?

Fig Loans are one place to start when looking for online funding, but how does CreditNinja compare to Fig Loans? 

At CreditNinja, we are an online lender that offers financial solutions when borrowers need emergency funding. For borrowers who may have a poor credit score, our personal loans can be a great payday loan alternative. 

How Do CreditNinja Installment Loans Work?

With CreditNinja’s personal installment loans, the loan amounts can range depending on your finances including your ability to repay the loan. Once approved for a personal loan through CreditNinja, you can have the funds sent straight to a bank account to use right away. Repayment will include a steady monthly schedule until the loan is paid off in full. 

The Application Process When Working With CreditNinja’s Installment Loans

Here is what the application process will look like when working with CreditNinja for a personal loan: 

Get Started With A Loan Application for Our Online Installment Loans 

The first step is to head to our website and start a loan application. Getting started is simple, all you need is a smartphone or computer with secure internet access.

Finish Your Application

Our online application only takes a few minutes and you will just have to answer a few simple questions to complete things. In most cases, you won’t be asked to gather any  documents, you should be able to get all your details within the application itself. 

Find Out About Approval

Once you submit your loan application, you will find out about final approval! If approved for a CreditNinja installment loan, all you have to do next is go over the loan contract. If everything looks good, then you can go ahead and sign your loan agreement!

Once Approved Get Funding 

Once the loan contract is signed, all that is left to do is get your funds! Because we want to make the process as convenient as possible, we can have those funds sent straight to your bank account. Sometimes the funding process can happen on the same day as approval!*

Some Benefits of Choosing CreditNinja for a Personal Loan

You Don’t Need Excellent Credit for an Installment Loan Through Us

You don’t need to have excellent credit for an installment loan when working with CreditNinja. We have helped many borrowers who don’t have the best credit history or scores find financial loans. 

The Loan Terms Are Flexible

CreditNinja’s installment loans have a wide range of repayment lengths which generally start at a few months up to 12 months. And so, whether you need a short term or long term loan, CreditNinja may be able to accommodate that time frame.

We Are a Direct Lender

We offer loans directly, in contrast, indirect lenders offer a connection service. There are many advantages of working with a direct lender, such as a potentially faster  and more personalized process. 

Steady Loan Payments Until the Loan Is Rapid in Full

If you want a predictable repayment schedule, then look no further than CreditNinja’s installment loans. Our personal loans come with steady monthly payments until the loan is repaid in full. 

Our Loans Are Unsecured Loans

Secured loan options can become a little more complicated that unsecured loan options, additionally, if you cannot repay your loan then the asset may be at risk. CreditNinja’s installment loans are unsecured, making them a convenient option when compared to secured loan counterparts.

We Offer Fast Emergency Cash

If you need funds quickly, then CreditNinja’s personal loan options may be a solution. Our application process is extremely fast, and once approved for a personal loan the funds may be available on the same day!*

There Are No Prepayment Fees When Working With Our Loans

Once of the most flexible things about our loan terms is that you can pay your loan early without having any prepayment penalties to worry about. Not all lenders allow for borrowers to do this without any fees. Paying your loan early can help you save on interest rates and help you be debt free faster. 

Friendly Customer Service Representatives

Our customer service agents are available to help you throughout the application and repayment process! Whether you have questions before, after, or during the borrowing process, you can contact us. Our customer service agents are helpful, attentive, and empathetic. 

And so, as you can see there are many differences between Fig Loans and CreditNinja! Finding the right solution for your needs will depend on your financial situation and the type of repayment terms you are looking for. 

*Applications approved before 10:30 a.m. CT Monday-Friday are generally funded the same business day. Applications approved after this time are generally funded the next business day. Some applications may require additional verification, in which case the loan, if approved, will be funded the business day after such additional verification is completed.

References:
Fig Loans
Texas alternative to payday loans | Fig Installment Loans
Credit Builder | Fig Loans

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