As 2010 drew to a close, many Americans focused on limiting their credit card spending and resolved to follow their budgets more closely.
However, consumers still needed access to funds for car purchases, down payments on homes or college tuition, and as a result, turned to other sources for loans.
California-based Lending Club, one of the U.S.’s largest issuers of personal loans, announced this week it issued more than $100 million to consumers during 2010. The company estimates as much as 63 percent of its new clientele used its service to get rid of high interest debt and credit cards.
“Lending Club represents a step forward in connecting the source of capital to the use of capital, and it’s clear that the concept has resonated,” said the company’s chief executive officer Renaud Laplanche.
Personal loans are provided by linking investors together with consumers for loans set at negotiable rates.The company says these loans are appealing because of their flexibility – they can come in large amounts yet still be specifically crafted to fit a consumer’s needs.