How does a Fig Loan affect my credit score?

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One of the goals for a Fig Loan is to help you rebuild your credit. Because we know credit score isn't an indicator of creditworthiness (for our borrowers especially!), we do NOT look at your FICO or other traditional credit scores when you apply. We look at your transaction history and income, as shown by your bank account statement. We do, however, do an identity and fraud check with our partner, Clarity Services, but our checks with them will not impact your credit score with the major credit bureaus in any way.

We start reporting this loan on your credit report once it is open, and we continue reporting each month until the loan is paid off. We report all transactions (loan openings and repayments) for a given month on the 10th of the following month.

Repayment history (as reported to the three main credit bureaus) is one of the many factors that helps determine your credit score. Fig reports all of loan payments to the three major credit bureaus to help build positive repayment history. We recommend paying your loan off according to the original schedule for maximum credit-boosting benefits!

Important Notes:

  • Paying your loan off early may not help your credit as much as paying it off over the recommended length of time, because you will see fewer payments. Age of account and number of payments affect the credit score.
  • Late payments will negatively impact your credit score, and for each increment of 30 days that a payment is late, the impact will get worse.
  • You may notice a slight drop in your credit score immediately after paying off your loan. This is usually temporary, and then your credit score recovers and improves.

For more information on how Fig Loans affect your credit score, head to Fig Loans & Credit Reporting: Everything You Need to Know

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