SAN FRANCISCO, Oct. 17, 2013 /PRNewswire-iReach/ -- LendUp, the socially responsible online lender, has launched its services in both Missouri and Louisiana and now offers borrowers in those states the first real path away from the payday loan debt cycle and towards better credit.
LendUp has already achieved early success in its first state, California. There, it introduced the LendUp Ladder—an opportunity that provides responsible borrowers with access to more money at lower rates over time. As customers move up the LendUp Ladder, the company reports payments to credit bureaus, giving customers the chance to improve their credit score.
As federal, state and local government agencies crack down on unlicensed online lenders, customers need safe options now more than ever, and LendUp seeks to expand its reach to states where it can have the most meaningful impact. According to the Pew Charitable Trust, 11 percent of Missouri residents use payday loans, and Louisiana trails only slightly behind at 10 percent. At double the nationwide average usage rate of 5.5 percent, a large percentage of borrowers in these states are using products that will not help them build credit. LendUp's proprietary technology can get customers the money they need instantly, but combines access to capital with credit education, transparency and the ability to build credit for the long term.
The company plans on continued expansion throughout this year and the next, targeting states where the current payday landscape is the most predatory. "We're excited to bring all the benefits of modern technology to more places—benefits like transparent pricing with no debt traps, instant approvals and deposits 24/7, and a safe and convenient experience available from any smart-phone or computer," said co-founder and CEO Sasha Orloff. "LendUp provides these features to a group of customers who are ready for something new and innovative now, but include the long term benefits of credit building."
"As we grow, it's important for us to be licensed and adhere to the lending laws in each state that we operate," said Orloff. "We want our customers to have all benefits of transparency, accountability, and consumer protection that being a direct, state licensed lender brings—as well as all the convenience of a trusted, online product that can approve people instantly any time of day or night."
LendUp is a socially responsible lender that offers a safe alternative to consumers that banks and credit unions decline. The LendUp Ladder changes the dynamics of the small dollar loan: rather than being a dangerous first step into a cycle of debt, it becomes an opportunity to learn good financial behavior and to build credit through education, gamification and a transparent fee structure. LendUp is located in downtown San Francisco and is backed by prominent Silicon Valley investors such as Y-Combinator, Google Ventures, Kleiner Perkins, Andreessen Horowitz Seed Fund, Thomvest Ventures, among other highly regarded angels and entrepreneurs.
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