LendingClub Corp. said Tuesday it would raise interest rates for new loans by an average of 0.25% to match the Federal Reserve’s move earlier in December. The announcement means that people who borrow money through Lending Club, who often seek to pay back more expensive credit-card debt, will bear the cost of the Fed’s recent increase in the benchmark federal-funds rate. The...
Lending Club announced yesterday that it will raise interest rates for new loans by an average of 0.25 % to match the mortgage Reserve 's move earlier in December . The Wall ##ding Journal suggests that the move “ may indicate a shifting dynamic for peer - to - peer investors , which have mostly been competing for new borrowers via direct lending and personal - finance websites , while enjoying a long queue of investors starved for yield by rock - bottom interest rates . Lending Club could have done nothing , essentially giving borrowers a free pass on the rising cost of credit , but Chief Executive Renaud Laplanche said that “ Club 's more effective marketing and targeting of borrowers mean that higher rates would n't slow down the platform 's growth .