With growing concern over consumer debt, homeowners are increasingly looking for smarter ways to manage their finances. They likely have thousands in assets but don’t always understand how to manage and leverage them.
Educate your customers on options like a credit card vs. home equity line of credit for responsible asset management. Help them tap into home equity rather than another credit card.
Partner with Figure to offer streamlined HELOCs to your customers.
Cost implications of credit cards and how HELOCs differ
Credit cards have grown more expensive than ever, according to the 2023 Consumer Credit Market Report by the CFPB:
Issuers charged more than $130 billion in interest and fees in 2022.
Many cardholders with subprime scores are paying 30-40 cents in interest and fees per dollar borrowed each year.
Credit cards are convenient, with quick approvals to use a card for everyday purchases, but they come with significant downsides for long-term financial health.
As unsecured debt, they typically carry higher interest rates that are often variable and can escalate beyond control. This can lead consumers into revolving debt that’s difficult to pay down, negatively impacting credit scores.
HELOCs, on the other hand, can offer more sustainable financing. Secured by the customer’s home, they provide features like lower, fixed interest rates and affordable, predictable monthly payments with no prepayment penalty.
Credit card vs. home equity vs. HELOC credit cards
Educate your clients about the pros and cons of a credit card vs home equity vs HELOC credit cards to help them make informed, responsible financial decisions.
Compare these financing options to better advise homeowners:
Credit cards
Pros: Convenient, quick approvals, can build credit if used responsibly.
Cons: Unsecured, variable rate, and higher interest rates can lead to overspending — consumers are 18% more likely to overspend with credit cards.
HELOCs
Pros: Secured by home, fixed and lower interest rates available, can access cash for a wide range of purposes, including debt consolidation, home improvement, education, retirement, and more.
Cons: Uses home as collateral so can be risky for homeowners if they can’t make payments. Some HELOC products come with risks and costs depending on terms and processing.
Offer borrowers a straightforward, convenient, and affordable HELOC. Partner with Figure.
HELOC credit card
Pros: Secured by home, offers the convenience of a credit card, provides a hybrid financing option between credit cards vs HELOCs.
Cons: Interest rates and terms vary, can’t access cash for large purchases like home improvements, can lead to overspending similar to credit cards, uses home as collateral so can be risky for homeowners if they can’t make payments.
Read more: Benefits of a HELOC for customers
Help homeowners navigate risk management for smarter financing
Help customers navigate their risks and choices with these steps:
Talk about financial goals in the near and short term
Explore how they can leverage assets
Educate them on interest rates
Show cost-savings of using a HELOC
Discuss repayment options and monthly payments
Learn more: How to sell HELOCs to a nation addicted to credit cards
Financing tools evolve to meet consumer needs
Stop passing on HELOCs for your customers. Figure’s HELOC offers a quick, convenient, and straightforward process that serves you and your clients. Save time and earn more with Figure:
Homeowners use our 100% online application.
Consumers get a personalized fixed rate1navigates to numbered disclaimer in as little as 5 minutes.
Home equity lines of credit range from $15,000 to $400,000.3navigates to numbered disclaimer
Download our in-depth lender playbook to get started. We’ll show you how to connect with home improvement contractors to turn their prospects into your new HELOC customers.
Now featuring Intellidebt and AI Technology
At Figure, we’re committed to revolutionizing the HELOC space. Our latest addition, Intellidebt, empowers consumers to consolidate debt into a lower monthly payment while potentially qualifying for a higher loan amount. With Intellidebt, you can preview your customers' existing debts right from our application. Tailor solutions to their unique needs and convert leads into loyal clients.
We’ve also integrated advanced AI technology to streamline our Loan Origination System, eliminating over $8 million in unnecessary costs.
Credit card vs home equity? Help more customers get HELOCs for smarter financing
We’d love to partner with you to offer customers responsible financing options beyond the obvious credit card.
Leverage one of the fastest HELOCs available with our 100% online, streamlined application.
