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MOBILE APPS

<p>For Commercial and Institutional banking clients, use the LendingClub Commercial app.</p><p><a href=https://apps.apple.com/us/app/radius-business/id1436206933 ><img src='//images.ctfassets.net/orqped9h4wgz/5C8ypfIUO4xo1NgELpDQ6C/c0fbd3733ea38cd96ea438bb011823b8/hero-icon-1-image.png' alt='App store'/></a><a href=https://play.google.com/store/apps/details?id=com.radiusbank3351.mobile&hl=en_US ><img src='//images.ctfassets.net/orqped9h4wgz/3DaQxvssJYRHSpwAsz1U60/e8f395ddcd3375eec837efe0b3b5e456/hero-icon-2-image.png' alt='googleplay'/></a></p>

LendingClub Commercial App

Manage your accounts from anywhere - 24/7

Features & Benefits

<ul><li>Check your balance</li><li>View your account history and statements</li><li>Reorder checks</li><li>Deposit checks</li><li>Use <a href="/business-deposits/autobooks">Autobooks</a> for accounting</li></ul>

Manage Accounts

<ul><li>Make internal account transfers</li><li>Make wire transfers</li><li>Make payments to businesses or individuals</li><li>Place stop payments</li><li>Use <a href="/business-deposits/autobooks">Autobooks</a> for invoice management</li></ul>

Payments & Transfers

<ul><li>Set custom alerts</li><li>Set transaction alerts</li><li>Set balance alerts</li><li>Update password and security settings</li></ul>

Security

<ul><li>Chat with support</li><li>Send & receive secure messages</li><li>Call us at 800.242.0272</li></ul>

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If the thought of creating a budget makes you want to run for the hills, you aren’t alone. Budgeting can often feel overwhelming, especially if looking at bank statements or even just thinking about your money makes you feel uncomfortable. 

<p>If the thought of creating a budget makes you want to run for the hills, you aren’t alone. Budgeting can often feel overwhelming, especially if looking at bank statements or even just thinking about your money makes you feel uncomfortable. The truth is, your budget is simply a plan for your money—one that has the potential to improve your financial health, empower you to live within your means, reduce financial stress, and help you build the life you want.</p><h2>Why you need a budget</h2><p>A successful budget can reduce your day-to-day stress by helping ensure you’ve got all your financial needs and responsibilities covered. Though there are all sorts of budgeting methods available, the goals remain roughly the same. </p><h3>Tracking your spending</h3><p>When you see exactly where your money is going, you can pinpoint areas where you may be overspending and find ways to reallocate those funds for better use.</p><h3>Reaching your financial goals</h3><p>Whether you’re more focused on short-term goals, like a home repair project, or long-term goals like saving for retirement, you’ll have a much better chance of achieving them with a budget. Creating and sticking to a budget gives you the opportunity to take your goals out of the realm of wishful thinking and turn them into reality. </p><h3>Controlling your debt</h3><p>When you create a budget, you may be able to see the bigger picture and gain a clearer understanding of your debt. You might find that you can better manage your bills simply by being more frugal with your income. Or you may discover <a href="/personal-loan/debt-consolidation">consolidating your debt</a> or taking out a personal loan can help you save money over time. Creating a budget lets you tackle your debt head-on with a realistic plan to pay it down. </p><h3>Improving your discipline around money</h3><p>Budgeting can help you form habits that affect much more than your bank account. A well-thought-out budget can teach you to be more intentional with your choices, increase discipline, develop better boundaries, and better understand what you truly value. Plus, effective budgeting can help decrease anxiety and foster more positive feelings about your future. </p><h2>How to build a better budget: 6 simple steps</h2><p>Like many endeavors in life, the hardest part is getting started. Taking a methodical, step-by-step approach can help simplify the process and minimize any anxieties you have about creating your budget.</p><h3>1. Determine your annual spending capacity</h3><p>Rather than starting with your monthly income and expenses, try looking at how much you typically make and spend in a full year. Why? Because there’s no such thing as a “typical month,” and some expenses aren’t monthly. Add up all your income sources together—even your occasional boosts like bonuses, commissions, or tax refunds. Then, divide by 12 to give you a good estimate of what you may have to spend each month. From there, you can determine which months may have more expenses—like around the holidays—and let you plan which months you may need to cut back to save. </p><h3>2. List your non-negotiable expenses</h3><p>For this step of the budget-making process, write down each of your non-negotiable costs. This list may include: </p><ul><li><p>Rent or mortgage payments</p></li><li><p>Car payments</p></li><li><p>Groceries</p></li><li><p>Basic utilities</p></li><li><p>Childcare or school tuition</p></li><li><p>Insurance premiums</p></li><li><p>Minimum debt payments (credit cards, car loan payments, etc.)</p></li></ul><p>Some costs are fixed expenses, meaning you know exactly how much they cost each month—like your rent or car insurance. Variable expenses, on the other hand, can be harder to calculate.</p><p>To figure out your variable expenses, try to find the average cost by looking over the past 12 months of bills. For example, gather 12 months&#39; worth of electric bills, add up the total and divide by 12 to get an average cost. For partially documented expenses, like trips to the grocery store where you pay with cash, do a review of the past few weeks to get a good estimate of how much you spend. </p><h3>3. Create spending categories</h3><p>Create categories for all your expenses—like housing, transportation, food, utilities, healthcare, and insurance. Make sure to separate your “needs” from your “wants,” so you know how to prioritize if you ever need to tighten your budget.  For example, you need to budget for groceries and food each month, but you may want a nice dinner out. By putting these into separate categories, you are able to better see how much money you can save if you need it. </p><h3>4. Compare multiple months to see trends</h3><p>Comparing your expenses from month to month can give you a clearer understanding of your spending habits, particularly when it comes to problem areas. You may find, for example, you’re spending way more on takeout meals than you realized. Once you see these patterns, you can make changes until you find a better balance in your spending.. </p><h3>5. Prioritize savings and debt repayment</h3><p>Most Americans have <a href="https://www.cnbc.com/2018/08/20/how-much-debt-americans-have-at-every-age.html">some kind of debt</a>. A budget can help you pay it down and start saving for the future—as long as you’re willing to commit. Within every month, set aside funds for paying back your debts—like student loans or credit card bills. Don’t stop there. Making room in your budget to save can help you in the long run. </p><p>Some savvy budgeters find success in prioritizing savings by “paying yourself first.” When you pay yourself first, you set aside money for your financial goals before you spend it on immediate wants. </p><p>Depending on your goals, paying yourself first may include: </p><ul><li><p>Building an emergency fund for unexpected expenses</p></li><li><p>Contributing to a retirement account</p></li><li><p>Saving for your kids’ education costs</p></li><li><p>Getting out of debt faster</p></li><li><p>Purchasing a home</p></li><li><p>Replacing a car</p></li><li><p>Buying insurance</p></li><li><p>Contributing to your health savings account (HSA)</p></li></ul><p>If you live paycheck to paycheck, prioritizing these non-immediate needs may sound daunting. Don’t worry too much about the number you’re contributing. “Almost everyone can save <a href="https://www.getrichslowly.org/pay-yourself-first/">at least 1% of their income</a>,” notes financial blogger J.D. Roth. It all adds up. </p><h3>6. Allocate for fun</h3><p>No matter your approach, you won’t stick to any budget for very long if you don’t make room for enjoying life. Once you’ve committed money toward your necessities and your financial goals, give yourself permission to budget in some fun: sports or music lessons for the kids, dining out, local travel, etc. Even while you&#39;re prioritizing saving for the future, it&#39;s important to take care of your mental health and budget for the present moment, too. </p><h2>How to maintain your budget</h2><p>Your budget is an essential part of your financial health. Once you’ve created yours, set yourself up for success by reviewing your finances regularly. </p><h3>1. Check in often</h3><p>Check in on your budget on a regular basis to ensure everything is on track. Remember that a budget is simply a money management plan, not a rigid set of rules. The more you nurture it, the healthier it will be. </p><h3>2. Automate where possible</h3><p>Worried you may forget important bills and throw your budget off course? Automating your recurring payments can be a budget lifesaver. Set up autopay for your credit cards, utilities, and other regular expenses, making sure to keep track of when those payments are due so you’ll always have enough to cover them. You can even set up automatic withdrawals for your savings and 401(k) contributions with your bank and employer. </p><h3>3. Use budgeting software and apps</h3><p>Personal finance apps are popular options, and there’s now an app for practically any activity connected to your budget. Whether you want to track your spending, set savings goals, make mobile payments, view all your accounts in one place, get customized alerts, or do just about anything else, your favorite finance app can probably do it.</p><h3>4. Listen to financial podcasts</h3><p>Similar to mobile apps, podcasts have become a <a href="https://www.nielsen.com/news-center/2020/nielsen-at-podcast-movement-2020-opportunities-in-a-skyrocketing-industry/">huge part of our culture</a>. With countless options available, you can find podcasts covering everything from money-saving tricks to advice on retiring early. </p><h3>5. Join a budgeting community</h3><p>Feeling alone in your budgeting journey? Join a <a href="https://www.cnbc.com/select/best-personal-finance-communities/">financial community</a>! Money is a stressful and emotional topic, and talking with others who are on a similar path can make you feel heard, supported, and understood. It’s also a great way to get tips from more seasoned budgeters and learn from others’ past mistakes. </p><h2>The bottom line</h2><p>Creating and maintaining a budget can change the way you think about and manage money for the long term. Not only can building a budget help you curb your spending, <a href="/personal-loan">pay down debt</a>, and save, it can also help you develop better financial habits that can have a positive impact on other areas of your personal life. </p><h2>FAQ</h2><h3>1. I’m a first-time budgeter. Where do I start?</h3><p>If you’re a first-time budgeter, start with the basics to avoid getting overwhelmed. Calculate your after-tax income, write down all your recurring expenses (both fixed and variable), categorize your expenses, and prioritize saving for the future and paying down debt. Revisit your budget regularly to get to know your spending habits and make adjustments as needed. </p><h3>2. How can I live off my budget and still save money?</h3><p>Saving money can be challenging on a tight budget, but even setting aside just 1% of your income can make a difference over time. Try gradually increasing that percentage so you can boost your savings without seeing too much of an impact on your daily expenses. </p><h3>3. How do I tackle debt on a budget?</h3><p>Use the “pay yourself first” method to ensure you’re putting money toward your outstanding debts each month. Try also paying more than the minimum on your recurring debts, cutting out unnecessary expenses where you can, using budgeting apps, and revisiting your budget regularly to find and address key areas of overspending. </p>

The total cost of owning a car includes the purchase price, interest on loans, insurance, fuel, maintenance, repairs, taxes, registration, depreciation, and unexpected expenses.

<p>When it comes to estimating the true cost to own a car, the sticker price is only the start. Understanding the factors that go into cost of car ownership can reduce surprises and help you budget more accurately. </p><p>Here are six factors that impact the total cost of owning a car—plus tips for how to cut costs, where possible. </p><h2><b>1. Initial purchase price</b> </h2><p>Naturally, price is a large component of the true cost of owning a car. Purchase price can also determine sales taxes, state registration fees, and licensing fees. </p><p><b><i>How to lower it</i></b><i>:</i> Arm yourself with knowledge. Use online tools like Kelley Blue Book and <a href="https://www.truecar.com/">TrueCar</a> to research average selling prices and establish an appropriate value for your trade-in. Plug-in hybrids and electric vehicles come along with tax credits, which can offset part of the initial cost. You can also brush up on your negotiating tactics: <a href="https://cars.usnews.com/cars-trucks/advice/how-to-negotiate-the-best-price-on-a-new-car">U.S. News &amp; World Report</a> recommends controlling your emotions and knowing which fees are flexible. </p><h2><b>2. Interest rate</b> </h2><p>About <a href="https://www.consumerreports.org/car-maintenance/the-cost-of-car-ownership-a1854979198/">two-thirds of buyers</a> use financing for their car purchase, and the interest charges can contribute meaningfully to the true cost of car ownership. </p><p><b><i>How to lower it</i></b><i>:</i> Don’t settle for financing directly from the dealership. Our partners at NerdWallet recommend, “It’s wise to get pre-approved before you hit the dealership, so take a little time to compare auto loan interest rate offers from different lenders.” Making a down payment and keeping your credit score in good shape can also help you lock in a lower interest rate. </p><p>If you already have a loan, <a href="https://www.lendingclub.com/auto-refinancing">auto refinancing</a> can save you money on interest, lower your monthly payments, or potentially do both.</p><h2><b>3. Depreciation</b> </h2><p>Unfortunately, even well-maintained cars lose value over time, making depreciation one of the largest cost factors—particularly for new cars. Depreciation may not seem like an explicit cost, but it’s one you’ll realize when you go to sell your car and purchase a new one. </p><p><b><i>How to lower it</i></b>: Buying a used car can diminish the sting of depreciation, since older cars depreciate at a lesser rate. <a href="https://www.trustedchoice.com/insurance-articles/wheels-wings-motors/car-depreciation/">New cars can depreciate by as much as 11 percent</a> the moment you drive them off the lot. Keeping your car longer can also reduce depreciation costs. </p><h2><b>4. Maintenance</b> </h2><p>New tires, oil changes and unexpected repairs are included in the total tally for car ownership. </p><p><b><i>How to lower it</i></b><i>:</i> Longer, more comprehensive warranties and maintenance plans can help defray some costs—though these might add to the initial purchase price of the car. Reliability reviews and ratings, like those available at <a href="https://www.consumerreports.org/cars/">Consumer Reports</a>, can help you estimate expected costs and decide if a deluxe warranty is a good choice, or if a different car would be a better option. </p><h2><b>5. Insurance</b> </h2><p>Coverage is required by law in most states, and rates can vary widely. </p><p><b><i>How to lower it</i></b><i>:</i> The <a href="https://www.iii.org/article/nine-ways-to-lower-your-auto-insurance-costs">Insurance Information Institute</a> recommends shopping around for at least three price quotes and requesting a higher deductible. Bundling auto and home insurance with one company can also help save money. Rates can also be impacted by your driving record, how you use your car (daily commute versus weekends-only) and where it’s parked (in a garage versus on the street). </p><h2><b>6. Fuel</b> </h2><p>On average, fuel is the second-largest cost of car ownership—and the price goes up if you choose a gas-guzzling SUV. According to <a href="https://www.consumerreports.org/car-maintenance/the-cost-of-car-ownership-a1854979198/">Consumer Reports</a>, “You could pay more than $15,000 to fill up a Jeep Liberty over five years, while a similar-sized but more-efficient RAV4 V6 could save you $4,000 during that time.” </p><p><b><i>How to lower it</i></b><i>:</i> Pick your new car with an eye for efficiency, and consider whether an electric or hybrid vehicle could be right for you. Once you’ve made your purchase, get the most out of your MPG by avoiding aggressive driving, using cruise control and lightening your load. </p><h2><b>Calculating the cost of car ownership</b> </h2><p>Budgeting for the true cost of car ownership can get complicated, but an online cost estimator, like the <a href="https://www.edmunds.com/tco.html">Edmunds True Cost to Own® calculator</a>, can help. </p>

The ideal number of credit card accounts depends on your financial goals, but 2-3 is a good balance. It helps build credit without overcomplicating management or hurting your credit utilization.

<p>According to Experian&#39;s State of Credit survey, the average American carries 6 credit cards in their wallet. You might wonder, is this too many, and how many credit cards should I have?  </p><p>It all depends on your credit history and your personal financial needs. So, instead of focusing on how many open card accounts you should have (or may think you need), consider what impact your current cards have on your overall credit score, and whether or not those cards are helping you reach your financial goals.  </p><h2><b>How do I know if I have too many credit cards?</b> </h2><p>Certain situations may indicate you’re juggling more than you can manage:  </p><h3><b>You spend over your monthly budget.</b> </h3><p>If you have a hard time sticking to a budget and have several credit cards with high limits, you could wind up overspending your way into debt. </p><h3><b>You struggle to make payments on time.</b> </h3><p>If you’re habitually late paying your bills—or worse, if you miss payments altogether—you may be managing too many cards. Missing payments doesn’t only trigger late fees; your credit score can take a nosedive, too.  </p><h3><b>You are declined for new card offers.</b> </h3><p>If you’re having trouble paying what you currently owe and you have too many inquiries on your credit report, this signals to lenders that you might be seeking more credit than you can handle. Before you apply for a new card, ask yourself if you truly need it. If you’re seeking out more credit because you’ve reached your credit limit on other cards, maybe it&#39;s time to consider a debt consolidation loan instead. </p><h2><b>Your financial goals can help determine what&#39;s right for you</b> </h2><p>Below are some examples of financial goals, and whether or not a credit card can help you meet them: </p><h3><b>You’re building your credit history and score.</b> </h3><p>If you&#39;re just starting out and your credit history is still new, or if you’re trying to repair your credit, you may want to consider a secured card. With secured cards, you pay a cash deposit upfront that serves as collateral for the card issuer in the event you are unable to make your payment. Your cash deposit is typically equal to your credit limit. Your payment history will be reported to all three credit bureaus, so keeping up with your payments can help improve your credit score. </p><h3><b>You&#39;re maximizing rewards earnings.</b> </h3><p>Rewards programs can vary greatly between credit card providers. While one card may offer great cash back, another may help you quickly rack up travel points. That’s why some people choose to have multiple cards they use in tandem to maximize reward benefits. However, earning rewards isn’t as important as having a healthy credit score. It&#39;s always a better idea to apply for credit only when you need it and are able to manage it. </p><h3><b>You&#39;re buying a new house or car.</b> </h3><p>If you’re planning on making a big financial move such as buying a home, recent credit card applications (and the ensuing credit inquiries from card issuers) can backfire. Each new credit application triggers a hard inquiry, temporarily lowering your credit score. The Consumer Financial Protection Bureau recommends avoiding any new credit applications in the months leading up to securing a new mortgage, refinancing, or taking out a substantial loan of any size. </p><p>If you want the most favorable interest rates and terms on a new mortgage or auto loan, your best bet is to use your existing credit cards to improve your overall credit score. This means paying your bills on time and keeping your balances and credit utilization as low as possible. </p><h3><b>You&#39;re managing a large amount of debt.</b> </h3><p>While it might seem easy to apply for another new credit card to expand your available credit if you already have a large amount of debt that you don&#39;t foresee paying off within a couple of months, there are better, smarter options. Before filling out another credit card application online, consider instead setting yourself up on a budget and taking back control by consolidating your debt with a balance transfer personal loan. </p><h2><b>What should I do if I think I have too many cards?</b> </h2><p>Having multiple open credit card accounts won&#39;t impact your credit score. In fact, keeping older cards you&#39;re not using open can increase your average credit history length and <a href="https://www.lendingclub.com/resource-center/personal-finance/what-is-credit-utilization-and-how-to-improve-it">credit utilization ratio</a>. As long as the card doesn’t carry an annual fee or other charges, think twice before closing the account.  </p><p>Of course, if keeping a card open that you&#39;re no longer using creates too much temptation to overspend, you can try cutting it up, or putting it under lock and key. While closing your account with the credit card issuer is always an option, it will most likely impact your credit score temporarily.  </p><p>If you’re struggling to manage your credit card debt and need help getting back on track, consider a debt consolidation loan. A <a href="https://www.lendingclub.com/glossary/c/credit-history">debt consolidation loan</a> is a form of debt refinancing that combines multiple balances from credit cards and other high-interest loans into a single loan with a fixed rate and term. Debt consolidation can help you pay down debt faster, save you money by reducing your interest rate, and even improve your credit score by diversifying your credit mix and reducing your total debt (as long as you’re not adding any new debt). </p><h2><b>3 Ways credit cards affect your credit score</b> </h2><p>How you use the credit cards in your possession matters, especially when it comes to building and maintaining a good credit history and credit score. Here are important ways credit card use (or misuse) can affect your score: </p><h3><b>1. Payment history</b> </h3><p>Payment history has the most significant impact on your credit—making up 35% of your FICO score. Your payment history—the official record of how you’ve historically repaid money owed—shows potential lenders how reliable you might be as a potential borrower.  </p><p>The best way to maintain a positive payment history is by paying your bills on time, all the time. Missing a due date can deliver a big blow to your credit score. If you&#39;re already struggling to keep up with multiple credit card payments, setting up automatic payments and bill reminders can help you keep track of what&#39;s due and when. Before you apply for a new card, be sure you can make the payment on time so you don&#39;t become overextended or overwhelmed beyond your capacity to repay. In fact, first consider whether you should be consolidating some or all of that credit card debt instead.  </p><h3><b>2. Credit utilization</b> </h3><p>Credit utilization is the amount of credit you’ve used compared with the total amount that has been extended to you by all your lenders combined. To maintain a healthy credit score, experts recommend keeping your total <a href="https://www.lendingclub.com/resource-center/personal-finance/what-is-credit-utilization-and-how-to-improve-it">credit utilization ratio</a> at or below 30% across all of your accounts. While some people spread monthly purchases across multiple cards to keep their utilization low, that same strategy may also tempt you to overspend and max out all of your cards. </p><p>When you max out (i.e., reach your credit limit and have no more credit to use) even just one of your cards, it can hurt. If you don&#39;t act quickly to lower your credit balance, keeping a high balance may cause your scores to plummet, your minimum payment to increase, and any potential new transactions to be declined. </p><h3><b>3. Credit history</b> </h3><p>The average age of your open credit accounts is important because it shows lenders how long you’ve been managing credit. The longer your <a href="https://www.lendingclub.com/glossary/c/credit-history">credit history</a>, the better for your credit score. That’s why it’s a good idea to keep old accounts open and in good standing in order to maintain excellent credit, even if you’re no longer using those cards. </p><p>If you have an unused credit card that you want to keep open, consider making a small purchase at least once a year and paying it off immediately. Doing this can help prevent your credit card issuer from closing your account due to inactivity. </p><h2><b>The bottom line</b> </h2><p>When it comes to applying for credit cards, consider your financial goals, not a specific number (or perks offered by credit card companies). If a new credit card won’t help you reach those goals—or worse, sets you back—be careful. If you’re carrying credit card debt, consider all of your options to help you manage.  </p><h2><b>Credit card FAQs</b> </h2><h3><b>How many credit cards should I have to improve my credit score?</b> </h3><p>There is no magic number of credit cards to hold in your wallet that will boost your credit score. Instead, focus on applying only for what you need, making payments on time, and keeping your card balances low. If it&#39;s possible, get to the point of paying your balances down in full every month if you can.  </p><h3><b>Does having multiple credit cards hurt my credit score?</b> </h3><p>If you stay on top of your monthly payments and keep your total credit utilization under 30%, you may be able to manage multiple credit cards without harming your credit. However, as a general rule, most experts recommend only applying for the credit you need.  </p><h3><b>Should I open another card to increase my score?</b> </h3><p>Your credit score is determined by several factors such as your credit utilization, credit mix, and payment history. By opening another card you may lower your credit utilization and improve your credit mix, but it depends on your personal financial situation. Keep in mind that opening a new card may lower your score temporarily. If you’re struggling with your credit or trying to improve a low credit score, it’s better to focus on properly managing the cards you already have.  </p><h3><b>Should I get another credit card or personal loan?</b> </h3><p>Whether to apply for a new credit card or a personal loan depends on how you plan on using the line of credit or money borrowed, and how long it will take you to repay. If you want to use credit to make everyday purchases and earn rewards, having access to a revolving line of credit (i.e., a credit card) can be a good option. On the other hand, a personal loan is often a better choice if you want to finance a large, major purchase or need a longer period of time to pay down accumulated debt. Either way, shop around to find the credit option that best matches your financial goals.  </p><h3><b>Will closing a credit card hurt my credit score?</b> </h3><p>Sometimes closing a credit card can raise your credit utilization rate and reduce your average credit age and number of accounts, all of which can negatively affect your score. After taking in to consideration any annual fees you may be paying, in some cases it may be better to keep older, unused credit card accounts open. </p>

You have the right to request a free yearly copy of your credit report from each of the three major credit bureaus, but you may be able to check your reports more frequently online at no cost. 

<p>You are entitled to one free copy of your credit reports every year from each of the three consumer credit reporting agencies (Equifax, Experian, and TransUnion). You can choose to request all of your reports at once, or order them separately throughout the year.<sup>[1]</sup>  </p><ul><li><p><b>Online: </b>Visit <a href="http://annualcreditreport.com/"><b>AnnualCreditReport.com</b></a> and follow the step-by-step instructions. </p></li><li><p><b>Phone: </b>Call (877) 322-8228 to request your report(s). </p></li><li><p><b>Mail:</b> Send a completed<b> </b><a href="https://www.annualcreditreport.com/manualRequestForm.action"><b>Annual Credit Report Request form</b></a> to: </p></li></ul><p>Annual Credit Report Request Service </br>P.O. Box 105281 </br>Atlanta, GA 30348-5281 </p><h2>How to get additional free credit reports </h2><p>You may also be eligible to request additional free credit reports throughout the year if any of the following situations apply.<sup>[1]</sup>  </p><ul><li><p><b>Online request:</b> Free weekly credit reports are available online at <a href="https://www.annualcreditreport.com/gettingReports.action">AnnualCreditReport.com</a> from Equifax, Experian, and TransUnion.  </p></li><li><p><b>Adverse action:</b> If you were denied credit, insurance, or employment based on the information in your credit report, you’re entitled to request a free copy of the report from the credit reporting agency. Typically, you’ll need to make the request within 60 days after receiving notice. Follow the instructions you receive with your denial.  </p></li><li><p><b>Fraud:</b> If you believe your credit file has inaccuracies because of fraudulent activity, you can get a free copy of your credit report from a nationwide credit reporting company. You’re also eligible for two additional free copies for an extended fraud alert. </p></li><li><p><b>Unemployment:</b> You can get a free credit report if you’re currently unemployed and plan to apply for jobs within 60 days of your request. </p></li><li><p><b>Public assistance:</b> If you receive government-funded assistance, you may be eligible to get a free copy of your credit report.  </p></li><li><p><b>State law:</b> For example, California Credit Reporting Agencies Act (CCRRA). Check your state’s laws for availability.  </p></li></ul><p>You can also pay for additional reports—but by law, the credit reporting agency can’t charge more than $15.50 per report.<sup>[2]</sup>  </p><h2>Start monitoring your credit regularly </h2><p>When you apply for credit, like a <a href="https://www.lendingclub.com/personal-loan"><b>personal loan</b></a>, lenders typically consider the information on your credit reports as well as your credit score. Credit reports show a list of your accounts and your activity on the accounts, like payment history and balances. It also includes details about your applications for new credit, like loans, credit cards, and mortgages. Scoring systems like FICO<sup>®</sup> score and VantageScore use the information in your reports when calculating your credit scores.<sup>[3]</sup>   </p><p>Checking your credit reports and credit scores regularly can help you quickly <a href="https://www.lendingclub.com/resource-center/personal-finance/how-to-read-your-credit-report-identify-red-flags"><b>spot errors</b></a> and potential fraudulent activity. For instance, you may see an account you don’t recognize or a new application for a credit card that you never applied for. Report anything that doesn’t look right to the credit bureau immediately. If you suspect fraud, you can place a fraud alert on your credit report or set up a security freeze in more serious situations.<sup>[4]</sup>  </p><h2>The bottom line </h2><p>Keeping tabs on your credit reports can help you spot errors and potential fraud attempts. If you’re working on improving your credit, staying on top of your credit reports is also a good way to see what may be affecting your scores, like payment history and age of accounts. Remember, checking your own credit doesn’t affect your credit scores, and it’s free to check your report annually.   </p><hr/><ol><li><p><a href="https://www.consumerfinance.gov/ask-cfpb/how-do-i-get-a-free-copy-of-my-credit-reports-en-5/">Consumer Financial Protection Bureau</a>. “How do I get a free copy of my credit reports?” </p></li><li><p><a href="https://www.consumerfinance.gov/rules-policy/final-rules/fair-credit-reporting-act-disclosures/">Consumer Financial Protection Bureau.</a> &quot;Fair Credit Reporting Act Disclosures&quot;</p></li><li><p><a href="https://www.consumerfinance.gov/ask-cfpb/what-is-the-difference-between-a-credit-report-and-a-credit-score-en-2069/">Consumer Financial Protection Bureau</a>. “What is the difference between a credit report and a credit score?” </p></li><li><p><a href="https://consumer.ftc.gov/articles/free-credit-reports">Federal Trade Commission Consumer Advice</a>. “Free credit reports.” </p></li></ol><p></p>

The time value of money means money today is worth more than the same amount in the future due to its earning potential. It reflects the benefit of receiving money now versus later.

<p>In short, the time value of money (TVM) is the idea that money is worth more today than the same amount of money in the future, and it’s a core concept in finance.  </p><h2><b>What is the time value of money?</b> </h2><p>The time value of money (TVM) is fairly easy to understand. For example, most people would rather receive $1,000 today than $1,000 three years from now. There are different reasons for the changing value, but three of the main ones are:  </p><ul><li><p>You could use the money now to earn money. If you receive money today, you may be able to make money by saving or investing it. There’s an opportunity cost—the lost potential earnings—if you don’t receive the money until later.  </p></li><li><p>The cost of goods and services increases over time. Inflation can lead to the same amount of money having less purchasing power in the future. It isn’t part of TVM calculations but can still impact the real-world value of your money over time. </p></li><li><p>You might not get the money in the future. Getting the money today removes this uncertainty that you might not be given the $1,000 in the future. </p></li></ul><p>The time value of money can get tricky when the amount offered now versus in the future is different. For example, what if someone offered you $1,000 today or $1,150 three years from now? The TVM formulas can help you determine which might be the better option.  </p><h2><b>How to calculate the time value of money</b> </h2><p>There are a few formulas you can use to determine either the present value of money or the future value of money:  <i>PV = FV / (1+r)n</i> <i>or</i> <i>FV = PV x (1+r)n</i> </p><ul><li><p>PV = Present value of money </p></li><li><p>FV = Future value of money </p></li><li><p>r = interest rate </p></li><li><p>n = number of periods per year  </p></li></ul><p>The FV formula assumes that interest compounds annually. If the interest compounds more frequently, such as monthly or continuous compounding, you can use the following formula to find the future value.  <i>FV = PV x [ 1 + r / n) ] (n x t)</i> </p><ul><li><p>r = annual interest rate </p></li><li><p>n = number of compounding periods each year </p></li><li><p>t = number of years </p></li></ul><p>Don’t worry—there are plenty of <a href="https://www.calculator.net/present-value-calculator.html">present value</a> and <a href="https://www.calculator.net/future-value-calculator.html">future value</a> financial calculators online that you can use.  </p><h3><b>Time value of money formula examples:</b> </h3><p>With the formulas in mind, let’s go back to the question from before—would you rather have $1,000 today or $1,150 three years from now? The answer to this simple example may depend on the interest you can expect to earn if you get the money today. For example, assume that you could earn 4% interest annually—a low but reasonable interest rate—and the interest compounds at the end of each year.  </p><p>We can use the present value formula to find the value of the $1,150 today: </p><ul><li><p>PV = 1,150 / (1+.04)3 = $1,022 </p></li></ul><p>Or, the future value formula to find the value of $1,000 three years in the future:  </p><ul><li><p>FV = 1,000 * (1+.04)3 = $1,125 </p></li></ul><p>It’s close, but receiving the $1,150 lump sum three years from now may be the better choice. Of course, a different rate of return or time period could impact the outcomes. Keep in mind, the result doesn’t account for inflation and the risk that you won’t receive the money at all. We’re also putting aside the risk that you might not be able to earn the full 4% each year.  </p><h2><b>Examples of the time value of money and loans</b> </h2><p>TVM calculations can be an important part of making investment decisions. Professional investors and advisors may use the concepts and formulas to compare deals, annuities, and other investment opportunities. Although more complex calculations also come into play, such as finding the net present value (NPV) of future cash flows.  Individuals might want to use financial calculators or the TVM formulas to compare investments or choose between paying down debt and investing. The concept could also be helpful if you’re borrowing money or considering how to pay off debt.  For example, you might have $15,000 in credit card debt with an average 20% APR. You know you may be able to use a <a href="https://www.lendingclub.com/personal-loan/debt-consolidation">debt consolidation loan</a> to save money by lowering your interest rate, but you’re not sure which loan offer to choose: </p><ul><li><p>Loan A is for $15,000, and it has a 14% APR and a three-year term. It has a $513 monthly payment and you’ll repay $18,456 overall.  </p></li><li><p>Loan B is for $15,000, but it has a 16% interest rate and a five-year term. It has a $365 monthly payment, and you’ll repay $21,886 overall. </p></li></ul><p>Loan A costs $148 more each month for three years. Once the loan is paid off, you’ll pay $365 less each month during years four and five, since you’re no longer making payments. Additionally, while Loan B has a lower monthly payment, it costs $3,432 more overall. Keep in mind that these examples do not take into account origination fees or prepayment penalties.  </p><h2><b>Why is it important to understand the time value of money?</b> </h2><p>When you’re faced with a specific financial decision, such as which loan offer to accept, the TVM calculation on its own might not give you the answer.  </p><p>For example, regardless of how much the TVM calculations say a sum is worth today versus after a period of time, you might want a loan with a low monthly payment because you know your rent is about to increase. Or, you might be okay with a high monthly payment because you know it will lead to paying off the loan sooner and paying less interest overall.  </p><p>However, it can still be helpful to think about how access to cash is valuable, and how the money you have today could be worth more than the money you might have in the future.  </p><h2><b>The bottom line</b> </h2><p>The time value of money is the idea that money is worth more today than it will be worth in the future. You can use several TVM formulas to determine the current value of money from the future, or the future value of money today.  TVM equations and outputs can be an important piece of comparing investment opportunities. Additionally, it can be helpful to consider the concept when you’re making other financial decisions, such as whether to consolidate debt.  </p><h2><b>Time value of money FAQs</b> </h2><h3><b>How does time value of money affect personal loans?</b> </h3><p>The TVM doesn’t directly affect your <a href="https://www.lendingclub.com/personal-loan">personal loan</a>, but it can be a factor in deciding between different loan options. Consider whether you’d like to have more money today or pay off the loan sooner and save on interest.   </p><h3><b>How can lenders help you benefit from the time value of money?</b> </h3><p>Money that you have access to today may be worth more than the money you have in the future, and lenders can give you access to more money. However, you’ll need to compare how much you pay for financing to how much you can earn from saving or investing your cash.  </p><h3><b>How does the time value of money apply to car loans?</b> </h3><p>When taking out a car loan, consider the TVM and whether it makes sense to finance none, part, or all of the purchase. For instance, even if you have the money available, it might make sense to finance the purchase with a 0% APR offer and save or invest the money you have on hand.  </p>

From groceries and diapers to Halloween costumes for pets, nearly 60% of American consumers prefer to shop online for everyday items that make life more convenient, comfortable, and enjoyable. And with rising prices showing no signs of stopping anytime soon, we’re pleased to introduce StackitTM from LendingClub Bank—a new browser extension that automatically finds and rewards eligible members with coupons and cash back for extra savings at more than 15,000 favorite online retailers.

<p>From groceries and diapers to Halloween costumes for pets, nearly 60% of American consumers prefer to shop online for everyday items that make life more convenient, comfortable, and enjoyable. And with rising prices showing no signs of stopping anytime soon, we’re pleased to introduce Stackit<sup>TM</sup> from LendingClub Bank—a <a href="/member-benefits/stackit/install?utm_source=Internal&utm_medium=Blog&utm_campaignid=stackit_launch">new browser extension</a> that automatically finds and rewards eligible members with coupons and cash back for extra savings at more than 15,000 favorite online retailers.</p><h2>Limited Time Offer to Double Your Cash Back Through 12/31/22</h2><p>Stackit is a free, new cash back and rewards program available to personal loan members that’s easy to download and install. Eligible members can activate their favorite offers with one click to start saving while stacking cash back offers with existing loyalty program rewards at eligible stores.</p><p>“We’re relentless when it comes to giving customers more, and Stackit is a perfect example of this,” said Amber Carroll, SVP of Membership and Lifecycle Marketing. “Stackit appears as you shop so it’s easier to activate. You can redeem your cash back for gift cards from hundreds of online stores. And you can continue accumulating loyalty points from merchants and rewards from credit cards while we stack coupon savings and cash back earnings on top of all of it,” she said. “Stackit demonstrates our promise to help members make smart money moves that are both easy and rewarding.”</p><p>To celebrate the new Stackit rewards program, LendingClub is offering its personal loan members double the cash back on eligible purchases made now through the end of the year. To start earning and stacking rewards, eligible members can simply <a href="/member-benefits/stackit/install?utm_source=Internal&utm_medium=Blog&utm_campaignid=stackit_launch">add the new Stackit Extension</a> to their browsers—<b>doubling their earnings for a limited time through 12/31/22.</b>* Cash back can be redeemed for e-gift cards through the Earnings Dashboard.</p><h2>New Name, Better Rewards</h2><p>Earlier this year, LendingClub soft-launched its exclusive member rewards program as a separate Chrome browser extension test that was made available to a small subset of customers. Drawing from these learnings,Stackit is LendingClub Bank’s new and improved rewards program featuring a new extension, expanded browser availability, and enhanced account integration that is rolling out to a wider member audience beginning in November.</p><p>Currently, any LendingClub personal loan member can download and start using the new Stackit browser extension. (Users of the old LendingClub Chrome Extension can continue earning cash back through 11/30/22; any amount remaining in users’ accounts after 11/30 will automatically be paid out via PayPal. Members are advised to add the new Stackit Extension to continue earning cash back and rewards, including double cash back, on future purchases.) In addition to Chrome,Stackit expands browser availability to Safari and Edge, and enables members to view recent transactions and cash back earnings inside their LendingClub account instead of a third-party site. Planned rollouts to LendingClub members with Auto, Deposit, and other accounts beyond personal loans are expected, however, timing is still under consideration.</p><p><i>*Double Cash Back Offer on eligible transactions expires 12/31/22. See </i><a href="/legal/terms-of-use"><i>Terms of Use</i></a><i> for full details. Offer is subject to change without notice.</i></p><p>Stackit is a non-deposit product offered by LendingClub Bank.</p>

Even in today’s low-yield, high-inflation environment, it’s essential to keep a certain amount of money in an easy-to-access checking or savings account for things like daily household and emergency expenses, or to meet short-term financial goals. 

<p>Even in today’s low-yield, high-inflation environment, it’s essential to keep a certain amount of money in an easy-to-access checking or savings account for things like daily household and emergency expenses, or to meet short-term financial goals. However, recent <a href="https://www.fdic.gov/analysis/household-survey/">FDIC research</a> shows approximately 7.1 million Americans are “unbanked,” meaning they do not have a basic checking or <a href="/personal-savings">savings account</a>.</p><h2>Being Unbanked Increases Costs for Families</h2><p>Reasons for being unbanked (and underbanked) vary from not having enough money to meet a minimum balance and high or unpredictable fees, to having a history of credit, ID, or banking problems, and/or a general distrust of financial institutions.As a result, this drives unbanked individuals to expensive, alternative financial outlets—such as check cashers, payday lenders, and pawn shops that charge high fees for financial products and services—to manage their money. </p><p>Such fringe financial “solutions” hold people back from making meaningful financial progress, many of whom are living on low incomes and, likely, already struggling to make ends meet. Without a <a href="/personal-checking/rewards-checking">checking account</a>, these families wind up overpaying for basic financial transactions, making it difficult for them to build savings and assets over time.</p><h2>More Rewarding Banking for More People</h2><p>In light of this, we’re proud to share that recent improvements to LendingClub Bank’s <a href="/personal-checking/rewards-checking">award-winning Rewards Checking</a> has earned us official certification by the national Cities for Financial Empowerment Fund as meeting the BankOn National Standards for trust and affordability for consumer transactional accounts.Key features of our award-winning Rewards Checking account include:</p><h3>Low Minimum Opening Balance</h3><ul><li><p>Access Rewards Checking with an opening deposit of only $25</p></li><li><p>Freedom from Fees Save more of your hard-earned money with no overdraft, monthly maintenance, and incoming wire transfer fees<sup>1</sup></p></li></ul><h3>Unlimited Cash Back</h3><ul><li><p>Earn <a href="/personal-checking/rewards-checking">unlimited 1% cash back</a> on Qualified (signature-based) Purchases when using your Rewards Checking debit card<sup>2</sup></p></li></ul><h3>Free ATM Access</h3><ul><li><p>Enjoy <a href="/help/checking-accounts-faq/how-do-i-earn-atm-rebates-on-my-checking">ATM access with no LendingClub ATM fees</a>, plus get unlimited ATM fee rebates on fees charged by other banks<sup>3</sup></p></li></ul><h3>Get Your Paycheck Early</h3><ul><li><p>Set up direct deposit into your account and you could be eligible to receive your money up to 2 days earlier<sup>4</sup></p></li></ul><h3>Earn Interest</h3><ul><li><p>Earn an APY that’s more than the national average with account balances of at least $2,500<sup>5</sup></p></li></ul><h3>FDIC Insurance</h3><ul><li><p>Rest easy knowing your deposits are FDIC-insured up to the maximum amount allowed—$250,000 per depositor for each ownership category</p></li></ul><h3>Best Online Experience</h3><ul><li><p>Based on our easy-to-use mobile app and award-winning <a href="/personal-checking/rewards-checking">online checking account</a>, NerdWallet named us <i>Best Bank or Credit Union for Online Experience</i></p></li></ul><h2>What Our Members Say</h2><p>It’s important knowing we’re offering products and services that are helping to improve the financial lives and stability of all Americans, including unbanked and underbanked individuals and families, in every community across the United States.Here’s what some of our members have to say about their Rewards Checking experience with LendingCLub Bank:<i>“I never knew how much money I was losing with my old bank whenever I used an ATM. [LendingClub Bank] reimburses fees from ATM’s and now I look forward to getting the cash back every month.”</i></p><p><b>Robin</b>, a LendingClub Bank Member<i>“The rewards checking account with cash back every month has helped me ditch my credit card and debt.”</i></p><p><b>Lauren</b>, a LendingClub Bank Member</p><p>Read more member reviews.</p><h2>Your Financial Well-Being Matters to Us</h2><p>At LendingClub Bank, making <a href="/personal-checking/rewards-checking">checking accounts</a> more rewarding for more people is an example of our belief that financial well-being should be attainable for everyone—not just for those who can afford it. Everything we do is centered around empowering our members to meet their personal financial goals by enabling access to a broad range of financial  products, services, and educational resources, all designed to help them pay less when borrowing and earn more when saving. </p><p><i>Testimonials reflect the real-life experiences of individuals who used our products; however, individual results may vary.</i></p><p><i></i></p><hr/><h4><i>Terms and Conditions</i></h4><p><i>Accounts subject to approval. $25 minimum opening deposit required. See Product Terms &amp; Conditions for additional details.</i></p><p><i>1. Miscellaneous fees may apply. View Product Terms &amp; Conditions for complete details.</i></p><p><i>2. The Debit Card Rewards Program (“Cash Back Rewards”) provides 1.00% </br>cash-back on all Qualified Purchases using a debit card tied to an Eligible Account.</i></p><p><i>Eligible Accounts are: Rewards Checking accounts that meet the following requirements for the calendar month in review:</i></p><p><i>1). Maintain an average monthly balance of at least $2,500.00; or 2). Receives at least $2,500.00 in Qualifying Direct Deposits.</i></p><p><i>Qualifying Direct Deposits are defined as: Recurring Automated Clearing House (ACH) credits, including payroll, pension or government payments (such as Social Security) made by your employer, or an outside agency. We may require documentation to verify that credits are Qualifying Direct Deposits. Qualifying Direct Deposits do not include peer to peer payments or ACH transfers (funds transfers) from your external accounts.</i></p><p><i>Qualified Purchases are defined as: Signature-based purchases made using the debit card </br>tied to an Eligible Account. These are “credit” purchases that can be made in stores and online. To make a signature-based purchase, select “credit” rather than debit at point-of-sale kiosks. The “credit” option is most often pre-selected when making purchases online using a debit card. Online subscription payments may not be considered signature-based purchases. The payment transaction type (signature-based or other) is ultimately decided by the merchant and is based on how the transaction is transmitted at the time of processing. Qualified Purchases do not include: (1) any goods or services purchased that are returned or otherwise credited to your Eligible Account; (2) unlawful purchases; or (3) purchases of currency, cash or cash equivalents (including, without limitation, currency from the U.S. Mint, Travelers Checks, gift cards, cryptocurrency, casino chips, peer to peer payments, prepaid debit cards, account openings, loan payments, or other cash equivalents).</br> </br>We may report the value of Cash Back Rewards to the IRS as required by law. Any client whose tax status would require us to impose tax withholding of any sort will not be eligible for Cash Back Rewards.</br> </br>Accounts are reviewed after the end of each month. Any earned Cash Back Rewards will be credited to your account on or before the 10th calendar day of the next calendar month. The Eligible Account must be open and active at the time the Cash Back Reward is credited.</i></p><p><i>3. LendingClub does not charge a fee for using another bank’s ATM. Plus, get unlimited automatic ATM surcharge rebates for ATM fees other banks charge you. ATM surcharge rebates apply to cash withdrawals from a Rewards Checking account. ATM fees will be rebated at the end of each statement cycle. Excludes international exchange fees. LendingClub makes its best effort to identify those ATM fees eligible for rebate. In the event that you have not received a rebate for a fee you believe is eligible, please contact Customer Service at 800.242.0272. LendingClub reserves the right to modify or discontinue the ATM surcharge rebate program at any time. Out-of-network ATM fees cost $2.50 on average — source: CNBC as of 01/26/2022. If someone were to use an out-of-network ATM 6 times per month at an average fee of $2.50 per withdrawal, they would spend $180 in ATM fees in 12 months.</i></p><p><i>4. Any account features that enable you to receive direct deposits, or that enable direct deposit funds to be made available to you early, are contingent upon and subject to the payor’s support of such features. </i></p><p><i>5. Annual Percentage Yield (APY) accurate as of 8/1/2022. Rate tiers are as follows: 0.00% APY applies to balances of $0.00–$2,499.99, 0.10% APY applies to the entire balance on balances of $2,500.00–$99,999.99, and 0.15% APY applies to the entire balance of $100,000.00 or more. Rates are variable and are subject to change, at the discretion of the bank and without notice, at any time after an account is opened. Fees may reduce earnings.</i></p>

Since 2007, LendingClub has been on a mission to deliver a world-class experience to all our members. This month we took a moment to reflect on the more than four million members who have chosen LendingClub as their partner to help them reach their financial goals.

<p>Since 2007, LendingClub has been on a mission to deliver a world-class experience to all our members. This month we took a moment to reflect on the more than four million members who have chosen LendingClub as their partner to help them reach their financial goals.</p><p>As the leading digital marketplace bank in the U.S. built on the belief that innovative, creative solutions deliver more value and a better experience, we’re always looking for new ways to provide more. In early 2021, LendingClub became a bank holding company operating a national bank, allowing us to expand our products and level the playing field for everyone.  </p><p>“Every day we help members leverage their money so they can earn more when saving and pay less when borrowing,” said Amber Carroll, Senior Vice President of Membership &amp; Lifecycle Marketing at LendingClub. “We&#39;re working to redefine banking, which means ensuring our interests are well aligned with those of our members and introducing new ways to better serve their needs.” </p><p>Since the beginning of the pandemic, how we work, live, and manage our finances has evolved in ways most of us would never have imagined. Increasingly, more Americans across varying credit profiles are struggling to stretch their dollars between paychecks. According to a recent survey from LendingClub and PYMNTS, even among workers earning more than $100,000 per year nearly half are living paycheck to paycheck.  </p><p>At LendingClub, we’re inspired every day by our members who continue to strive for financial well-being during these unprecedented times—such as by consolidating their credit card debt into a single, more manageable payment, refinancing their auto loan to free up room in their budget, or taking advantage of a CD or high-yield savings account to invest in their future. The Club is working hard to help members reach their goals and we’re incredibly proud to help simplify their path. As one of member recently shared: </p><p>“This is the third time I have utilized LendingClub&#39;s great rates and lending plans to assist with home repairs and debt consolidation. Their application and payment processes are quick and simple to use. I have saved so much time and money using this funding!” — Christine, a member from Texas </p><p>We believe everyone deserves a better financial future. If you’re ready to improve your financial well-being and are not already a member of the Club, we can help. From banking smarter with your <a href="/personal-deposits/online-banking">personal checking and savings</a>, to working toward larger financial goals—like <a href="/personal-loan">consolidating debt</a>, <a href="/auto-refinancing">refinancing an auto loan</a>, or making home improvements—you can easily check your rate for a personal loan in minutes, with no impact to your credit score. </p><p>Thanks again to all of our members for helping us achieve this incredible milestone.  </p>

In March 2022, we hosted our first quarterly webinar where we celebrated our one-year anniversary as a digital marketplace bank. 

<p>In March 2022, we hosted our first quarterly webinar where we celebrated our one-year anniversary as a digital marketplace bank. </p><p>During the webinar, Anuj Nayar, our Financial Health Officer, discussed:</p><ul><li><p>Our journey to get to where we are today </p></li><li><p>Lessons learned from our 15-year history as a fintech pioneer</p></li><li><p>How we’re leveraging our digital marketplace bank to further our mission to help Americans on their path towards financial health</p></li><li><p>We recently reported Q4 2021 and year-end earnings</p></li><li><p>New data on the financial health of U.S. consumers from our latest Paycheck-to-Paycheck report</p></li></ul><p>A historic milestone, as one of the first fintech company to acquire a national bank we’ve paved the way for other fintechs to follow suit. With 15 years under our belt, more than 3.9 million members, and over $70 billion in loan originations, the marriage of LendingClub’s marketplace fintech business with all the benefits of being a bank is fundamentally changing the nature of our business and influencing change across the banking industry as a whole. We’re also creating something new for our members -- a bank that puts the customer at the center of what we do. </p><p><a href="https://vimeo.com/686043451">Check out the video below to learn more.</a></p>

LendingClub completed the acquisition of Radius Bank in February 2021. At that time, in addition to the direct-to-consumer deposit business, we inherited a fintech partner program, and several lending businesses. As we reach the one-year anniversary of the acquisition, and in conjunction with the conclusion of a strategic review of our business operations, we have made the decision to discontinue certain businesses that don’t fit our mission.  

<p>LendingClub completed the acquisition of Radius Bank in February 2021. At that time, in addition to the direct-to-consumer deposit business, we inherited a fintech partner program, and several lending businesses. As we reach the one-year anniversary of the acquisition, and in conjunction with the conclusion of a strategic review of our business operations, we have made the decision to discontinue certain businesses that don’t fit our mission.  </p><p>This includes our yacht loan business. Yacht loans are simply not in line with our mission to help <i>everyday </i>Americans on their path to financial health and we plan to grow our auto refinance business to take its place.  </p><p>During the review, we also thoroughly examined relationships and operating activities for the fintech partners. As a result of our review, we are asking certain partners to modify their activities and/or operations to match expectations and contractual commitments, and we have begun exiting certain partners. As part of the ongoing dialogue with these partners, we have discussed transition plans or operational changes that could impact the services available to these partners and their customers.   </p><p>As a pioneer in this space, we have a unique perspective. We operated for 15 years as a fintech with a partner bank model and now we operate as a fintech, a bank, and a partner bank. We work hard at LendingClub to maintain and build a robust, secure, compliant and scalable enterprise. We are guided by our core values, our extensive experience, our deep data set and technology investments, and governed by strong controls, to deliver on behalf of our members, communities, shareholders, partners, and team members.  </p><p><b>These business model changes will have no material effects on our business operations </b>and we plan to report more details when we issue our Full Year 2021 and Q4 earnings in a few weeks. </p><p><i>Scott Sanborn CEO </i> </p><p>LendingClub</p><hr/><p><i><b>Safe Harbor Statement</b></i></p><p><i>Some of the statements above, including statements regarding  the effect on our business operations as a result of the business model changes, are &quot;forward-looking statements.&quot; The words &quot;anticipate,&quot; &quot;believe,&quot; &quot;estimate,&quot; &quot;expect,&quot; &quot;intend,&quot; &quot;may,&quot; &quot;outlook,&quot; &quot;plan,&quot; &quot;predict,&quot; &quot;project,&quot; &quot;will,&quot; &quot;would&quot; and similar expressions may identify forward-looking statements, although not all forward-looking statements contain these identifying words. Factors that could cause actual results to differ materially from those contemplated by these forward-looking statements include those factors set forth in the section titled &quot;Risk Factors&quot; in LendingClub&#39;s most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, each as filed with the Securities and Exchange Commission, as well as in LendingClub&#39;s future filings made with the Securities and Exchange Commission. LendingClub may not actually achieve the plans, intentions or expectations disclosed in forward-looking statements, and you should not place undue reliance on forward-looking statements. Actual results or events could differ materially from the plans, intentions and expectations disclosed in forward-looking statements. LendingClub does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. </i></p>

Related Impact

{noun} A type of credit that allows the borrower to make charges and payments against a set borrowing limit, paying interest only on outstanding balances.

<p>A type of credit that allows the borrower to make charges and payments against a set borrowing limit, paying interest only on outstanding balances.</p><h2>What is Revolving Credit?</h2><p>Revolving credit is a type of credit that lets you borrow money as needed up to an amount called your credit limit. Borrowing reduces your available credit, and repayment replenishes your credit limit (minus the interest and fees charged). Revolving credit does not have a fixed number of payments. This differs from installment credit which lets you borrow a lump sum and pay it back over a set number of fixed monthly payments.</p><h2>How Does a Revolving Line of Credit Work?</h2><p>It helps to think of a revolving line of credit as a renewable source of funds within a set credit limit. The lender sets the credit limit upon application approval. You can use as much of your credit limit as you need, paying interest only on the money you borrow. As you repay what you’ve borrowed (plus interest and fees), your available credit replenishes, and you can continue borrowing against your revolving line up to the credit limit.</p><h3>Types of Revolving Credit</h3><p>The most common revolving credit products are lines of credit and credit cards.</p><p><b>Lines of credit </b>come in different forms, including home equity lines of credit (HELOCs), personal lines of credit, and business lines of credit. Credit lines are typically issued by banks and credit unions, and generally you can draw on your line using special checks, ATM, telephone, and online banking. You’ll only pay interest on the money borrowed from your line of credit. </p><p>Some lines of credit may be limited in how the funds can be used, such as only for balance transfers from credit cards.</p><p><b>Credit cards</b> are revolving credit accounts that, unlike lines of credit, require you make a purchase or cash advance to access your credit line. While card issuers reserve the right to change your credit limit, you can access your available credit as long as your account is in good standing. When you make purchases on a credit card, you can repay the balance in full by the end of your billing cycle to avoid interest charges and fees. If you don’t pay your outstanding balance in full,the balance “revolves,” or rolls over, to the next month and will accrue interest until paid in full. </p><p>Note: Both lines of credit and credit cards can be secured or unsecured. Secured accounts require collateral; unsecured accounts do not. For example, a HELOC uses your home as collateral. Credit cards are typically unsecured, but some secured cards require cash deposits as collateral.</p><h3>Why is Revolving Credit Important?</h3><p>Revolving credit offers greater borrowing flexibility than installment credit. For instance, if you get a $10,000 installment loan for a home remodeling project, you typically receive all the money at once and must start repaying on the entire loan balance immediately plus interest on that amount—even if you don’t use the funds right away. If you need more money, you’ll have to apply for a new loan.</p><p>On the other hand, if you get a line of credit or credit card with a $10,000 limit, you can draw on it as needed—say, $1,000 in January, $2,000 in April and $1,500 in June­—and interest will accrue only on the amounts you borrow. As you pay back what you’ve borrowed, your available credit is restored up to your credit limit, so you can make future purchases without needing to apply for additional credit.</p><p>Since it doesn’t require fixed monthly payments, revolving credit can also offer greater payment flexibility than installment loans. If money is tight in a particular month, you have the option of only making the minimum payment on a revolving account, potentially making it easier to meet other financial obligations.</p><p>Revolving credit can also serve as a financial cushion. Even if you never use it, it’s there in case you need quick access to small amounts of cash in an emergency.</p><h3>What Are the Risks of Revolving Credit?</h3><p>Revolving credit has some drawbacks you should be aware of.</p><p><b>Collateral risk:</b> If you fail to make payments on a secured revolving credit account, you could lose your collateral. With a secured credit card, that loss could be a few hundred dollars. With a HELOC, you stand to lose your home.</p><p><b>High interest rates:</b> Revolving credit typically has higher interest rates than installment credit. Interest rates for most credit cards and many lines of credit are also <i>variable</i>, meaning they can change over time based on economic conditions.</p><p><b>Excessive debt: </b>If you only make the minimum payment on a credit card, you could accumulate a large balance. Credit card interest is typically <i>compounded</i>, meaning interest accrues on both the balance of your purchases and on previously applied interest. Compound interest can cause your balance to snowball until it’s difficult to pay down.</p><h3>How Does Revolving Credit Affect Your Credit Score?</h3><p>Revolving credit could help your credit score in several ways.</p><ul><li><p><b>On-time payments:</b> Making revolving credit payments on time could boost your credit, since timely payments are a major factor in your FICO®  Score.</p></li><li><p><b>Responsible credit utilization:</b> Keeping your revolving credit balance below 30% of your credit limit could increase your credit score.  Ideally, you would pay your credit card balances in full each month.</p></li><li><p><b>Diverse credit mix:</b> A variety of accounts, including installment credit and revolving credit, could show lenders you can successfully manage different types of debt.</p></li></ul><p>Revolving credit could also have negative impacts on your credit score when not managed responsibly. </p><p><b>Late payments: </b>Missing payments could have a significant negative impact on your credit score. Setting up auto-payments on your revolving credit accounts can help ensure you never miss a due date.</p><p><b>Excessive credit utilization:</b> Consistently carrying balances that exceed 30% of your available credit limit can reduce your credit score. </p><p><b>Hard inquiry:</b> When you apply for revolving credit, creditors perform a credit check called a <i>hard inquiry</i>, which could cause a small, temporary dip in your credit score.</p>

{noun} The total annual cost to borrow money, including fees, expressed as a percentage.

<h2>What is Annual Percentage Rate (APR)?</h2><p>Annual percentage rate (APR) is the cost of borrowing money on an annual basis. APR is expressed as a percentage, to make it easier to compare the cost of credit. </p><p>APR and interest rate are sometimes used interchangeably, however, APR and interest rate are different. APR includes both interest plus fees applied over the course of a loan. Because APR is a more complete measure of the cost of credit, it is usually higher than the interest rate.</p><h2>How is Annual Percentage Rate Calculated?</h2><p>To calculate APR on a loan, you’ll need to know a few other numbers first:</p><p><b>Interest:</b> The total interest charges paid over the life of the loan, also known as the cost of borrowing money.</br><b>Fees:</b> Review the terms and conditions of the loan to find the fees that apply to your loan. Fees vary by loan type and lender. </br><b>Principal:</b> The original loan amount.</p><p><b>Days in the Loan Term (n):</b> Since APR measures the annual cost of borrowing money, multiply 365 (days) by the number of years in the loan term. For loan terms under one year, use the number of days.</br></br>The formula to calculate APR is: </p><img src="//images.ctfassets.net/orqped9h4wgz/6cJEgR4ftSGoIaSuKLlek6/a3ce252e07839182be4e7550cd09e08a/Formula-Calculate-APR.png" alt=""/><p>The steps to calculate APR are:</p><ol><li><p>Find the interest charges</p></li><li><p>Add the fees</p></li><li><p>Divide the sum by the principal balance</p></li><li><p>Divide by the number of days in the loan’s term</p></li><li><p>Multiply by 365</p></li><li><p>Multiply by 100</p></li></ol><h3>Credit Card APRs</h3><p>Credit card APRs do not reflect fees and since a credit card has no set loan amount or fixed repayment term, its APR is simply its interest rate.</p><p>Under the Truth in Lending Act, passed in 1968, lenders and other financial institutions must disclose APR when offering credit. </p><h2>Why is Annual Percentage Rate Important?</h2><p>Knowing the annual percentage rate helps you understand the true cost of borrowing. </p><p>For example, all lenders are required to disclose APR, which makes it easier to compare loans from different banks and make a more informed borrowing decision.</p><h2>Are There Different Types of APRs?</h2><p>There are different categories of APRs depending on the type of financial product.</p><h3>Credit Card APRs</h3><p>Credit cards have several APRs that may apply to different transactions or account activities.</p><ul><li><p><b>Purchase APR: </b>The rate you pay for purchases. </p></li><li><p><b>Balance transfer APR: </b>The rate applied if you use a card to pay down balances on other credit cards or loans. </p></li><li><p><b>Cash advance APR:</b> The rate charged on ATM withdrawals or cash-equivalent transactions, like money-order purchases. </p></li><li><p><b>Introductory APR: </b> A promotional interest rate for a limited period of time that is lower than the card&#39;s regular APR, sometimes as low as 0 percent APR.</p></li><li><p><b>Penalty APR</b>:  A higher-than-normal rate that results from violating a card’s terms of service. </p></li></ul><h2>What’s the Difference Between Fixed and Variable APRs?</h2><p>APRs can be fixed or variable. A fixed APR remains unchanged for the life of your loan. A variable APR fluctuates in sync with a published market index, like the U.S. Prime Rate.<b>   </b></p><h3>Adjustable-Rate Mortgages</h3><p>Home loans with variable interest rates are called adjustable-rate mortgages (ARMs). With an ARM, your APR is fixed for an initial term (typically one, three, or five years, but sometimes as long as 10 years), then resets every six or 12 months, based on market rates. </p><h2>What Affects APR?</h2><p>The APR you&#39;re offered depends on a few factors: </p><ul><li><p>Whether a loan or line of credit is secured or unsecured</p></li><li><p>Current economic conditions</p></li><li><p>Your credit history</p></li></ul><p>Lenders may also consider your income and assets, down payment, and where you live when determining your APR.</p><h2>How Do You Get a Good APR?</h2><p>Getting the best APR on a loan or credit card typically requires shopping around. </br></br>Start by prequalifying with multiple lenders. Prequalifying is a quick process where you provide some basic information about your income and borrowing goal. Then, lenders respond with a preliminary, non-binding estimate of the loan amount and APR. This is typically done through a soft credit check, which doesn’t impact your credit.</p><p>Then, compare the preliminary offers and submit a full application to your lender of choice. With your detailed financial information and a hard credit inquiry, which will impact your credit, lenders can make a formal loan offer that includes your APR, fees, and repayment terms. </br></br>If you’re unhappy with the terms you’re offered (or if lenders decline your applications), your credit history might be the culprit. If this is the case, you can work to pay down your existing debts and bring late payments current, which can improve your credit score and chances for approval over time.</p>

{noun} The amount of unpaid interest that has accumulated as of a specific date, either on a loan or an interest-bearing account or investment. 

<h2>What Is Accrued Interest? </h2><p>Accrued interest is the amount of unpaid interest that has accumulated as of a specific date, either on a loan or credit card you’re repaying or on an interest-bearing account or investment.  </br> </br>Accrued interest can be owed or earned. For example, with a loan or credit card, it’s the amount of interest (payment you owe) that has been incurred since you made your last payment. With an interest-bearing account or an investment, such as a bond, it&#39;s the interest (income you earned) that has accumulated since the last time you received a payment from the financial institution or bond issuer. </p><h2>How Does Accrued Interest Work? </h2><p>The way accrued interest works depends on several factors, including the type of account, the balance or principal, the interest rate, timing, and whether you are borrowing money (such as with credit cards, auto loans, and personal loans), or earning money (such as with interest-bearing checking or savings accounts).  </p><h2>Accrued Interest on Loans </h2><p>Personal loans, auto loans, and other types of debt charge interest to their borrowers. Most lenders use the simple interest method of accounting, which means that interest that accrues each day is based only on the principal balance of the loan and doesn&#39;t compound on previously accrued interest. </p><p>For example, on a personal loan, the interest on your debt accumulates daily based on your current loan balance and interest rate.  When you make a loan payment, a portion of your total payment amount goes toward the interest that has accrued since your last payment and the remainder goes toward paying down the principal balance of your loan. </p><p>If you have a fixed interest rate, the daily interest amount will go down over time as your principal amount owed decreases with on time payments. With variable rate loans, the amount of interest that accumulates can fluctuate along with the loan&#39;s interest rate, however there&#39;s generally a downward trend with timely payments.  </p><p> </p><h2>Accrued Interest on Bank Accounts </h2><p>Generally, with interest-bearing deposit accounts, such as a high-yield checking or savings account, interest typically accumulates daily and is paid out monthly. The amount of interest that accrues is based on your balance and the account&#39;s annual percentage yield or APY (which may adjust higher or lower as rates rise or fall) and compounding interest. The higher the APY and your balance, the more you&#39;ll earn. </p><p>Also, most banks and savings institutions will compound the interest you earn, usually daily. This means that the interest that accrues each day is based not only on your principal account balance but also on the interest that has accumulated since the last payment.  </p><p>For example, let&#39;s say you have a $10,000 balance in a savings account with an interest rate of 5%. On the first day, your balance earns $1.37 in interest, and that gets added to your interest-earning principal—compounded—at the end of the day. That happens every day. </p><p>By the end of the year, your principal will have grown to $10,512.67—$500 in interest on your principal balance, and $12.67 from the interest earned on your interest.  </p><p> Calculation for daily interest rate: </p><p>0.05 / 365 = 0.000136986 </p><p> Calculation for first day’s interest: </p><p>0.000136986 x 10000 = 1.36986 </p><p> While your interest rate is 5% compounded daily; your total return including compounding, or <a href="https://blog.lendingclub.com/apr-vs-apy-whats-the-difference"><u>annual percentage yield</u></a>,  is 5.1267%. </p><p>Compounding interest increases your savings over time, especially in a rising interest rate environment. </p><h2>Accrued Interest on Bonds </h2><p>If you&#39;re investing in bonds, interest is typically paid out every six months, and the amount that accrues between payments depends on the face value of the bond and its interest rate. This calculation is known as yield to maturity. </p><p>Interest on bonds does not compound; that is, you don’t earn interest on your interest. </p><h2>How Accrued Interest Affects Borrowers </h2><p>If you borrow money, understanding accrued interest gives you an idea of how your loan&#39;s costs are incurred. As you make your regular monthly payments, for instance, the amount of interest that accumulates over time decreases. And if you make additional principal payments on top of your regular payments, you can reduce how much interest accrues even more.   </p><p>Keep in mind that, if you make an extra payment on a loan the lender may use some of that money to pay off the interest that has accrued since your last regular payment unless you specify otherwise. You can request that the lender put the full amount of your additional payment toward the principal balance, saving you more money on interest in the long run. </p><p>Understanding how accrued interest works is particularly important if you have student loans. While college students aren&#39;t typically required to make monthly payments while they&#39;re still in school, interest accrues from the moment the loans are disbursed.  </p><p>For borrowers with federal subsidized loans, the federal government will typically pay interest that accrues while they&#39;re in school and during future deferment periods. If you have unsubsidized loans or private student loans, all the interest that accumulates while you&#39;re in school (and during periods of deferment or forbearance) is added to your balance once repayment begins.  </p><p>If you want to avoid a growing balance, consider making interest-only payments while you&#39;re still in school. </p><h2>How Accrued Interest Benefits Savers </h2><p>If you have an interest-bearing deposit account, look into how often (daily, weekly, monthly, quarterly, semi-annually, annually) your financial institution compounds the interest that accrues in your account. The more frequently interest is compounded (e.g., daily vs. quarterly) makes it possible for you to earn more interest more quickly. </p><p>And if you&#39;ve invested in bonds, understanding how accrued interest works can help ensure that you get the money you&#39;ve earned, especially if you sell the bond between scheduled interest payments. For example, if you sell a bond three months after your last payment, you won&#39;t receive the amount of interest that accrued during that time. Because the buyer will receive the full semi-annual (every six months) interest payment despite only owning the bond for three months, they should pay you the amount that has accrued since your last payment on top of the price of the bond. </p><h2>How Is Accrued Interest Calculated? </h2><p>On loans, lenders generally calculate interest on a daily basis using either a 360-day or 365-day year. The lender will divide the loan&#39;s interest rate by one of those numbers to determine your daily interest rate, which it then applies to your balance. </p><p>On interest-bearing deposit accounts, interest generally accrues daily. Depending on how often your financial institution compounds interest, the amount that accrues each day may be calculated based on the principal balance plus previously accrued interest. </p><h2>What Is an Example of Accrued Interest?  </h2><p>Let&#39;s say you have a personal loan with a $20,000 principal balance and a 12% interest rate. To calculate the amount of interest that accrues every day, you&#39;ll do the following equation: </p><p>Calculation for daily interest rate: </p><p>0.12 / 365 = 0.000328767123288 </p><p>Calculation for daily accrued interest: </p><p>0.000328767123288 x $20,000 = $6.58  </p><p> In other words, you&#39;ll have $6.58 in daily accrued interest. Over 30 days, that amounts to $197.40.</p>

A debt that is written off as a loss because the financial institution or creditor believes it is no longer collectible due to a substantial period of nonpayment.

<p>A debt that is written off as a loss because the financial institution or creditor believes it is no longer collectible due to a substantial period of nonpayment.</p><h2>What Is a Charge-Off?  </h2><p>A charge-off on your credit report indicates the financial institution or creditor has written the account off as a loss and has stopped attempting to collect on a debt that you owe. However, a charge-off does not mean your debt is forgiven—it may be transferred to a collection agency or sold to a debt buyer. As long as the debt remains outstanding, you&#39;re still responsible to pay it. </p><h2>How Does a Charge-Off Work? </h2><p>When you miss a payment on a loan or credit card or have a bank account with a negative balance, the creditor or financial institution will attempt to collect the amount you owe. At some point, the creditor may determine the debt is uncollectible and decide to charge it off. This means the creditor has written off the remaining balance as a loss.  </p><p>At this point, the creditor will report the account as “Charged Off” to the credit reporting agencies which will appear on your credit reports along with the account balance. If the charge-off is legitimate and you can&#39;t convince the creditor to remove it, a charge-off can remain on your credit reports for up to seven years after your first missed payment. </p><p>Once a creditor has charged off a debt, they may decide to sell it to a debt buyer or transfer it to a debt collection agency for pennies on the dollar. If this happens, your account will be closed, interest will stop accruing on your balance, and your credit report will reflect that the account was &quot;Charged Off.&quot; However, you will still be liable for paying off the debt to the debt collection agency. Additionally, the collection agency may report a collection account for the same debt, further impacting your credit score. </p><h2>Will a Charge-Off Impact Your Credit Score? </h2><p>Your payment history is the most influential factor in your FICO credit score. Missing just one payment could have a significant negative impact on your credit score. </p><p>If a debt balance remains unpaid long enough for the creditor to stop attempting to collect payment, the worsening delinquency and subsequent charge-off could have a long-term  and far reaching impact to your credit score.  </p><p>For example, a low credit score and history of nonpayment may make it more difficult to get approved for credit in the future. It may also impact your ability to get approved for a residential lease or to qualify for lower interest rates on auto or homeowners insurance.  </p><h3>How Can You Repair a Charge-Off? </h3><p>The best way to repair a charge-off is to prevent it from happening. If you start missing payments, don&#39;t ignore the situation. Contact your lender and ask if there’s anything that can be done to help you avoid a charge-off situation. </p><p>In the event your debt is charged off, as long as there is a balance, you’re still responsible for repayment which is why you should consider ways to pay off the debt as soon as possible to avoid having it go to collections. Even if you cannot pay off the debt in full, you may want to consider negotiating a payment settlement with the creditor for less than what you owe or, if necessary, having the debt discharged in bankruptcy.  </p><p>In some cases, you may be able to negotiate with the lender to remove the charge-off from your credit report in exchange for full payment—a process known as “pay for delete.” Even if you can&#39;t get it removed, paying off the balance could potentially reduce the impact to your credit score.  </p><p>If the creditor does sell the debt to a collection agency, you&#39;ll face more attempts to collect the amount you owe. Some debt collectors may even resort to lawsuits to force collection through a court order. </p><h3>How Can You Limit Charge-Off Damage? </h3><p>The timeframe for when a creditor decides to charge-off an account ranges from 120 to 180 days from your initial delinquency date. You&#39;ll typically receive letters and phone calls reminding you of the past-due payment, urging you to get caught up. Don&#39;t ignore the creditor—this is the best time to talk to the lender to see if you can avoid a charge-off. </p><p>If you&#39;ve had an account charged off recently, contact the creditor as quickly as possible to verify the accuracy of the account details and look for opportunities to pay off some or all of the debt to avoid transfer to a collection account and further damage to your credit score. </p><p>In some cases, a charge-off could be reported in error. If this happens, it could damage your credit score, so you should act quickly to dispute the negative item with the credit reporting agencies. As long as the dispute isn&#39;t frivolous, the credit bureaus are required to investigate it and remove or update the information if it&#39;s found to be innacurate.  </br> </br>To contact the credit bureaus:  </p><ul><li><p><a href="https://www.equifax.com/personal/credit-report-services/credit-dispute/"><u>Equifax</u></a> </p></li><li><p><a href="https://www.experian.com/contact/personal-services-contacts.html"><u>Experian</u></a> </p></li><li><p><a href="https://www.transunion.com/credit-disputes/dispute-your-credit"><u>TransUnion</u></a> </p></li></ul><p>If the creditor decides to charge-off your account, it&#39;ll only report only to the credit reporting agencies that it normally reports to. For many lenders, it&#39;s all three, but some lenders may only report to one or two of the major credit bureaus. </p>

{noun} An interest rate that remains the same for a set time, usually for the life of the loan.

<p> An interest rate that remains the same for a set time, usually for the life of the loan.</p><h2>What Is a Fixed Interest Rate?</h2><p>A fixed interest rate is an interest rate that remains the same for a set time, usually for the life of the loan. With fixed-rate financing, borrowers can enjoy payment stability and avoid the risk of a variable interest rate—which may increase substantially over time, especially in rising interest rate environments.</p><h2>How Do Fixed Interest Rates Work?</h2><p>When you take out a loan with a fixed interest rate, your loan terms will define the fixed rate period.</p><p>Generally, for financial products like fixed rate mortgages and personal loans, your interest rate will remain the same throughout your loan term, as will your monthly payment amounts.</p><p>For financial products such as adjustable rate mortgages, the interest is variable, which means it can change periodically. Often, an adjustable rate mortgage (ARM) will have an initial period where the rate is fixed. After the fixed period, your interest rate may stay the same or it may adjust based on prevailing interest rates at the time.</p><h2>What Is the Difference Between Fixed and Variable Interest Rates?</h2><p>Fixed interest rates generally won’t change—either for the life of your loan or during a predetermined fixed period. In contrast, variable interest rates fluctuate based on market conditions and may change at any time.</p><h3>What Benefits Do Fixed Interest Rates Offer?</h3><p> Having a fixed rate loan offers several benefits for your finances.</p><ul><li><p><b>Financial Predictability. </b>A fixed interest rate makes it easier to plan your finances since your monthly payments don’t fluctuate over the fixed period, usually the life of the loan. Such predictable payments can  help you more easily manage your budget and alleviate stress.</p></li><li><p><b>Eliminate Interest Rate Risk. </b>With a fixed interest rate, you don&#39;t have to worry if interest rates start to increase in a volatile economy. Compared to loans with variable rates, a fixed-rate loan with a lower interest rate could save you money in a rising interest rate environment.</p></li><li><p><b>Potentially Lower Borrowing Costs. </b>With fixed-rate loans, you’ll know your total borrowing costs—including interest and fees—before you sign your loan documents. With variable-rate loans, it’s difficult to calculate your total borrowing costs since your interest rate may change substantially over time.</p></li></ul><h3>What Are the Drawbacks to Fixed Interest Rates?</h3><p>While a fixed interest rate can help you plan your finances for the long term, there are a few drawbacks to consider.</p><ul><li><p><b>Potentially Higher Rates. </b>Adjustable-rate financial products often have lower interest rates for an initial, introductory fixed period which may temporarily lower your cost to borrow. Fixed-rate products don’t offer such “teaser” rates.</p></li><li><p><b>Risk in Decreasing Interest Rate Environments. </b>If interest rates start going down, you may end up paying more to borrow on a higher interest rate than if you took out a new loan.</p></li><li><p><b>Refinancing Costs. </b>Even if you decide to refinance to get a lower rate, refinancing costs may outweigh the savings you may realize, and the process can be time-consuming. It’s  important to compare the total cost of borrowing of your existing versus a potentially new loan before making a decision.</p></li></ul><h2>What Can You Do to Get a Good Fixed Interest Rate?</h2><p>Generally, having a high credit score and a demonstrated track record of responsible debt management can help you land a lower fixed interest rate. In contrast, if you have a low credit score and a spotty history of on-time payments, the lender may view you as a higher-risk borrower and may not offer you the best fixed interest rate they have available.</p><h2>Can You Switch from a Variable Interest Rate to a Fixed Interest Rate?</h2><p>In most cases, you can&#39;t switch from a variable to a fixed interest rate on an existing loan. While you may be able to refinance your loan—either with your current lender or a new one—and move to a fixed-rate loan that way, it’s important to consider how well you would be able to cope with economic uncertainty. A low variable rates may be tempting initially, but should economic conditions sour and rates begin to rise rapidly, it may be difficult to find a good fixed rate when you want one. Or you may experience an unexpected obstacle, like job loss, that could make refinancing into a fixed interest rate loan difficult.</p><h3>Are Credit Card Interest Rates Fixed?</h3><p>Generally, credit card interest rates are variable, not fixed.</p><h3>Are Student Loan Interest Rates Fixed?</h3><p>It depends on the type of student loan. Student loans like Perkins Loans and PLUS Loans have fixed interest rates. Many other direct federal student loans—both subsidized and unsubsidized—have fixed rates as well.</p>

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