SAN FRANCISCO, June 18, 2019 /PRNewswire/ -- After
extensive testing, LendingClub (NYSE: LC), America's largest online
marketplace connecting borrowers and investors, today announced the
broader launch of balance transfer. Supporting borrowers who are
looking to consolidate debt or refinance their credit cards,
balance transfer loans offer the ability to seamlessly pay credit
cards and high-interest debt as part of the personal loan process.
For many customers, balance transfer loans will also come with the
most competitive rates through LendingClub.
When applying for a balance transfer loan, customers simply need
to input their account information and the amount they'd like to
pay down. LendingClub ensures that creditors get paid directly and
that any remaining money from the customer's loan gets deposited
into their bank account.
Many members who choose a balance transfer loan:
- Save an average of nearly $900
over the course of their loan1
- Cut their credit card interest rate nearly in
half2
- Increase their credit score in just three
months3
"LendingClub made it possible for me to get a loan at an
incredibly reasonable interest rate, in fact it was less than half
of some of my credit card APRs," said Brittany Love, a LendingClub borrower from
Charlotte, NC. "When I realized
how much money I had already lost shuffling my debt around from
card to card on these promotional plans, LendingClub was an easy
choice. I consolidated $11,000
worth of debt into one monthly payment of $350. With my LendingClub loan, I am on track to
pay off ALL of my credit card debt in three years compared to at
least sixteen years if I only paid the minimum I could
afford. Now, instead of "managing" my debt, I am conquering
it. I can't explain how empowered LendingClub has made me feel over
my control of my debt now."4
"By directly paying down credit cards, we're supporting our
borrowers on their path to taking control of their finances," said
Steve Allocca, President of
LendingClub. "This feature is directly in line with our mission of
helping members improve their financial health and is an excellent
example of how we're innovating to make the experience simple and
seamless."
LendingClub tested balance transfer with a subset of debt
consolidation and credit card refinance borrowers for more than a
year before making it more widely available to qualifying
customers. LendingClub works with a partner network of more than
1,700 credit card, bank and loan companies. With balance transfer,
members can add up to 12 creditors per loan and are able to begin
improving their financial health immediately—from the time of their
application.
To further engage members along their financial health journey,
LendingClub will also launch a credit card tracker within its
Member Center later this year. Today it functions as a stand-alone
credit card tracker, but as the Member Center evolves into a
personalized ecosystem, it will become a customizable plan to help
members prioritize and pay down credit card debt, build credit
eligibility, and increase savings on their path to financial
wellness.
Since LendingClub's launch in 2007, it has facilitated over
$47 billion in loans to more than 3
million members. A quarter of the loan volume over the entire
history of the company occurred in 2018. Learn more about balance
transfer loans through LendingClub.
About LendingClub:
LendingClub was founded to transform the banking system to make
credit more affordable and investing more rewarding. Today,
LendingClub's online credit marketplace connects borrowers and
investors to deliver more efficient and affordable access to
credit. Through its technology platform, LendingClub is able to
create cost efficiencies, passing those savings on to borrowers in
the form of lower rates and investors in the form of potentially
higher risk-adjusted returns. LendingClub is based in San
Francisco, California. All loans
are made by federally regulated issuing bank partners. More
information is available at LendingClub.com.
1 Average savings is $895 and average loan size is $15,206 for balance transfer-eligible members.
Savings compares a $15,206 loan with
11.77% interest (the average interest rate for 96,219 members who
saw a balance transfer loan offer) with the same loan at 15.15%
interest (the average interest rate for 25,671 members who saw a
cash loan offer) from 07/01/2018 –
12/31/2018.
2 The average interest rate among members who saw a
balance transfer loan offer from 07/01/2018–12/31/2018 was 11.77%.
Members' average interest rate on outstanding debt or credit cards
was 20.5%, as reported by 3,690 randomly selected borrowers in a
LendingClub survey conducted from 01/01/2018–12/31/2018. The
average interest rate among members who saw a balance transfer loan
offer from 07/01/2018–12/31/2018 was 11.77%. Members' average
interest rate on outstanding debt or credit cards was 20.5%, as
reported by 3,690 randomly selected borrowers in a LendingClub
survey conducted from 01/01/2018–12/31/2018.
3 On average, borrowers who paid their
debt down and maintained low balances saw a credit score increase,
however, other factors including increasing debt load could result
in your credit score declining. Based on data from 66,366 members
who were presented with and chose a balance transfer loan offer
from 07/01/2018–12/31/2018. On average, borrowers who paid their
debt down and maintained low balances saw a credit score increase,
however, other factors including increasing debt load could result
in your credit score declining. Based on data from 66,366 members
who were presented with and chose a balance transfer loan offer
from 07/01/2018–12/31/2018.
4 This is Brittany's experience. Individual results may
vary.
CONTACT: For Investors: IR@lendingclub.com; Media Contact:
Press@lendingclub.com
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SOURCE LendingClub