People Helping People: New Lending Trend Thawing Frozen Credit Markets in Time for the Holidays

--(BUSINESS WIRE)--People continue to be hit hard by everything "credit," and as they look to the holiday season and to getting their financial houses in order for the new year, they are eagerly seeking good news about how to deal with their mounting financial concerns. Social lending (also known as person-to person lending) may give them their answer.

“The current financial climate is creating mounting consumer distrust of large financial institutions and causing people to demand an alternative that gives them more control over their personal finances,” said Lending Club CEO and founder Renaud Laplanche. “LendingClub.com is leading the charge to deliver that alternative by providing a market where people can receive loans funded by other members—giving them a new option to finance their lives when they need it the most.”

Jada Brazil from Los Angeles, CA was tired of paying high interest rates on her credit card debt despite her solid credit history and turned to LendingClub.com to lower her interest rate by more than 35 percent. “Choosing Lending Club for my loan not only gave me a better interest rate—saving me money—but it also makes me feel good to know that the interest I pay goes to other people like me and not to some faceless bank,” says Brazil.

LendingClub.com is open to individual borrowers with credit scores at or above 640 and a debt-to-income ratio of 25 percent or less. Using the site, borrowers can apply for personal loans that are funded by other members. Loans are funded in the amounts of $1,000 to $25,000 with interest rates ranging from 7.37 percent to 19.36 percent, which typically are more attractive than those offered by banks and credit card companies.

By relying on each other, people are working together to thaw the frozen credit markets; and just in time for the holidays. For more information about joining Lending Club as a borrower or lender, visit http://www.lendingclub.com.

Note to editors: Screen shot, CEO images, Lending Club borrower interviews and comments from CEO and founder, Renaud Laplanche are available upon request.