SAN FRANCISCO—The former founder and CEO of LendingClub, Renaud Laplanche, is now disrupting the credit cards business.
Upgrade, his new San Francisco-based startup, is launching a personal credit line that's meant to bring together the fixed-rate interest of a loan with the freedom of using a card, Bloomberg reported.
“While LendingClub was largely used to help consumers refinance credit card debt, this new product is meant to be an alternative altogether,” Bloomberg said.
The line of credit will lend between $500 and $50,000, and consumers will be able to draw from it when they need, only getting interest rate charges on the amount they use. The funds are deposited directly into the customers bank account, Bloomberg said.
“The offering resembles a home equity line of credit, but Upgrade's offering won't require customers to use their home as collateral, noted Bloomberg.