Customers and lenders sometimes limit themselves with what’s possible for smart financing.
Customers increasingly rely on credit cards and unsecured loans, despite higher interest rates. The total number of credit cards in the U.S. reached 543.1 million in Q1 2024, steadily growing from 455.5 million in 2021, according to TransUnion.
For a nation that seems addicted to credit cards, you can reach these potential customers and provide something even better, a home equity line of credit.
Learn how to sell HELOCs: Partner with Figure to offer streamlined HELOCs to your customers.
The pitfalls of rising credit card debt
Although credit cards provide some benefits—convenience, security, and rewards—they often come with the highest interest rates, making them difficult to manage and pay off compared to other financing options.
Credit card interest rates are particularly challenging for consumers:
The average credit card interest rate is 27.89% as of mid-March 2024, according to Forbes Advisor’s credit card rate report.
Almost half of the nation’s cardholders, across all generations, report that they don’t know or are unsure about their cards’ interest rates, according to a Forbes Advisor survey.
The survey also noted that 28% of credit card users use them “to cover expenses I can’t afford.”
As the prime rate fluctuates, so do credit card APRs. Carrying a balance comes with increasingly higher costs.
How to sell HELOCs: Shift the mindset from plastic to property
Customers need guidance through the challenges of the current market, inflation, higher interest rates, etc. There are more affordable options, especially for consumers who own a home.
Some lenders offer HELOC credit cards, but these perpetuate many of the risks of any credit card. This includes being 18% more likely to overspend with a credit card. Plus many large purchases can’t be put on a credit card. For example, homeowners may not be able to pay a contractor with a credit card, and if they do, they may be charged a hefty processing fee.
Figure’s Solar, Business and Strategic Partnership Director, Aimee Clark shared, “as we continue to lead the charge in home improvement and solar financing, it's crucial to recognize the shift needed in our financial mindset. Many homeowners still reach for their credit cards out of habit, but when it comes to significant investments like home renovations, those cards often fall short or come with hidden costs. Our role is to educate and empower loan officers to guide homeowners toward smarter, more sustainable financing options like HELOCs. By shifting from plastic to property, we're helping homeowners build equity and make investments that truly pay off.”
Rather than a consumer tapping into their home at the register, you can educate them to use equity in meaningful ways by accessing cash flow with a Figure HELOC.
A Home Equity Line of Credit (HELOC) is a great option for homeowners to:
Leverage the investment in their home
Make big, intentional purchases
Pay off high-interest debt
Realize life-changing goals
Help more customers and close more loans. Educate consumers about the benefits of HELOCs, as well as the risks of credit cards and HELOC credit cards.
Download our in-depth lender playbook as a starting point. We’ll show you how to connect with home improvement contractors to turn their prospects into your new HELOC customers.
Game-changing tools for debt management and consumer financing
Offer Figure’s HELOC to help customers make the responsible choice for their financial future.
You no longer need to refer homeowners to banks and credit unions for HELOCs. Save time and earn more by processing them with Figure’s streamlined, easy application.
Minimal effort and more pay-off:
With Figure, you guide homeowners to using our 100% online application.
Consumers get a personalized fixed rate1navigates to numbered disclaimer in as little as 5 minutes.2navigates to numbered disclaimer
Home equity lines of credit range from $15,000 to $400,000.3navigates to numbered disclaimer
Now featuring Intellidebt and AI Technology
At Figure, we’re committed to revolutionizing the HELOC space with cutting-edge features. 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' exact debts right from our app, allowing you to 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. These savings are passed on to our lending partners while significantly speeding up transaction times.
Maximizing how to sell HELOCs
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.
