LendUp Raises $47.5 Million for Possible Credit Card Push to Subprime Borrowers

August 23, 2016, Written By Bill Hardekopf
lendup

LendUp has raised $47.5 million in capital, and many analysts believe it will use this money to expand its L Card, a credit card marketed to subprime borrowers. These subprime borrowers are typically underserved by traditional, larger lenders.

Currently, LendUp focuses on small-dollar loans with high interest rates. While the rates are initially high, the company offers better terms when customers make on-time repayments. The lending limits on the L Card are $300 to $1,000, the APR ranges from 19% to 29%, and the annual fees can be as high as $60.

Some perks of the card include a flexible payback schedule and a smartphone app, which allows users to immediately stop charges if the card is lost or stolen. The app also has a financial health meter that shows cardholders how much they have left to spend. The company claims it is already enrolling thousands of customers each month.

A great portion of the new capital came from YC Continuity.

CEO Sasha Orloff says the company does not want to punish customers for late repayments or charge other hidden fees. “We have no interest in keeping people in debt,” Orloff told TechCrunch.

According to The Wall Street Journal, the company is now valued at $500 million. It has raised more than $200 million in 2016, including a $100 million credit facility from Victory Park Capital.


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The information contained within this article was accurate as of August 23, 2016. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.