LendingClub Extends Balance Transfer to More Borrowers
Drives savings and simplicity, improves financial health
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:
"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.
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.
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