Payday Loans Are a Rip-Off. Here’s How to Get $500 Right Now — for Way Cheaper
Oof. It’s rent day again, and you know the landlord will be coming around like always. But this time, you’re strapped for cash.
You’re really in a pinch here. What to do, what to do? Skip paying the power bill? Or go to the nearest check-cashing place and take out a quick payday loan? A loan that charges you a super-high interest rate and rips you off?
Forget that. There’s a better option you may not have heard of. A company called Fig Loans will loan you up to $500 to hold you over — for way cheaper.
In a Pinch? How to Get That $500 You Need (No Credit Check Required)
No, Fig Loans doesn’t dish out predatory payday loans that saddle you with nasty interest rates of 400% or higher.
Unlike a payday loan, a loan from Fig Loans is less expensive, easier to repay and helps build your credit. It’s a four-month installment loan of $300 to $500. You pay the same amount each month, so you’ll never be surprised.
Here’s a bonus: Your payments are automatically reported to the three major credit agencies: Experian, Equifax and TransUnion. That can help you build your credit rating — or rebuild it if your credit isn’t great.
Fig Loans also won’t hit you up with fees. (Payday loans are notorious for piling on the extra fees.) It’ll even waive late fees if it comes to that, working with you to find a new repayment date that’ll work for you.
Soo… I Need $500. But What’s the Catch?
We hear you. You’re wondering what’s the catch. But here’s the thing: There really isn’t one.
The interest rate you’ll pay will depend on your creditworthiness, but your rate for your first loan with Fig Loans may be in the range of 176% to 190%. That’s a lower interest rate than you’ll get with other short-term lenders, and it’s less than half what you’d pay for a traditional payday loan.
So of course there’s a cost, like with any loan, but if you need that $500 pronto to help make your rent or avoid a hefty late fee of some kind, you may decide the cost is worth it.
There’s no credit check required, but you’ll need to show that you’ve been getting direct deposits for at least three months. Oh, and heads up. Fig Loans currently operates in Florida, Illinois, Missouri, Ohio, Texas and Utah, but it’s working to expand to other states.
Are you in a financial pinch? It takes minutes to apply, and you could have the money you need in your account within the next day or two.
Mike Brassfield ([email protected]) is a senior writer at The Penny Hoarder.