First Class
Banking
Without a Bank
If you’re frustrated with the current state of retail
banking, alternatives do exist. Consider these three
nontraditional options for obtaining loans and storing
your cash. It’s as easy as A, B, C
AVERAGE
JOE LENDERS
As retail banks tighten their lending standards and raise interest rates, more people
are turning to peer-to-peer lending clubs for personal loans that boast interest rates
20 percent to 30 percent lower than the typical bank’s. Lending Club, a financial
community begun in 2007, brings together credit-approved borrowers (a credit
score of at least 660 is required) and investors, in the hopes that both will benefit.
“We focus on personal loans with a fixed interest rate,” says Scott Sanborn, chief
marketing and customer o;cer. “These are the super-responsible types of loans
made by banks 30 years ago, before credit cards got so popular.” In fact, the No. 1
reason borrowers take out a Lending Club loan is to pay o; burdensome credit card
debt, Sanborn says.
