Lenny today announces the nationwide launch of its new money lending app with peer-to-peer payment capabilities. The platform provides credit lines to millennials, all while helping them build healthy credit scores.
Users simply set up a Lenny account by downloading the app and signing up and can then apply for an initial credit line from as little as $100 up to $10,000 with 0% interest when balances are repaid in full and on time. This increases to rates ranging from as low as 4% and averaging 9.8% interest when payments are not made in full. An exclusively mobile-first lender, Lenny uses a credit decisioning algorithm to determine an individual’s credit score. Once a credit line has been approved, users can cash out to their bank account or instantly pay their friends using the peer-to-peer payment function. When repayments are made on time, users’ credit limits can increase by up to $1000 a quarter.
“Lenny is building a one-stop shop organization that serves the financial needs of a generation,” says CEO and co-founder Joe Bayen. “We help individuals improve their credit scores by informing major credit bureaus when payments are made on time. Your improved credit score can then be used to rent a house without needing a cosigner, help secure great credit cards, and more.”
At a time when the average U.S. college attendee is leaving education with $35,000 worth of debt, students and graduates need more help than ever when it comes to securing loans and financial advice. Young millennials are doomed to enter the job market with a financial handicap and minimal knowledge of how credit score systems work. Lenny fixes this by offering a unique set of financial tools and continual financial education through their blog.
While Venmo is the current leader in peer-to-peer payments, Lenny breaks the mold by operating primarily as a lending service that will soon supply free credit scores to its clients. Similarly, while there are a number of rival products on the market, Lenny is the only lender that is mobile first, allowing both young and old millennials to monitor their finances through their preferred financial technology. With 59% of US millennials accessing their bank accounts via mobile technology, Lenny is making the most of this market trend.
Bayen, who before arriving in Miami lived in Cameroon and France, knows first hand the problem that a poor credit rating can give you. After using a credit card to purchase a car while in college, he landed himself with a poor credit score. Now having fought his way out of those difficulties, Bayen is keen to make sure that no other students or graduates find themselves with the handicap of a damaging credit rating.
“Young millennials, piled high with student debt and college fees, already have enough of a handicap when they enter the labor market,” Bayen adds. “Our whole team is ready and waiting to make sure they don’t face similar problems with their credit scores, either.”