Fig Loans

Fig Loans is a mission-driven online lender offering small-dollar short-term installment loans as an alternative to payday loans. The company specifically targets consumers who face financial emergencies and might otherwise turn to higher-cost payday lenders or title loan companies. Fig operates in a limited number of US states.

Fig Loans are structured as installment loans with fixed payments over a set term, rather than a single lump-sum payment due on your next payday. This makes them structurally different from traditional payday loans and more manageable for consumers who cannot repay everything at once. Fig also reports payments to at least one major credit bureau, which means on-time payments can help build your credit profile over time, unlike traditional payday loans which typically do not report to bureaus.

Despite being positioned as a more affordable alternative to payday products, Fig Loans still carry annual percentage rates that are considerably higher than conventional personal loans from banks and credit unions. Consumers should understand the full cost before borrowing and compare Fig's rates against alternatives in their area.

Fig also offers a credit-builder loan product, where you pay into a savings account over time and receive the accumulated funds at the end of the term. Payments on the credit-builder product are reported to the credit bureaus, helping build your credit history.

Before using Fig Loans, check whether your local credit union offers payday alternative loans or small-dollar installment loans at lower rates. CDFI lenders and nonprofit emergency funds may also be available. If you do borrow, repay as quickly as possible and use the credit-building benefit as motivation to qualify for lower-cost credit in the future.