I have excellent credit. I am an investor and a borrower on Lending Club recently deciding to refinance my Citibank Dividends credit card which had jumped up to 19.99% from 12.99%. This jump happened pretty soon after the US credit crisis hit. Last week I got my Lending Club loan to pay off that very credit card. However, yesterday I received a letter from Citibank stating that there were some changes that had to be made to my account in order for them to be able to extend credit to me due to the current financial climate in our country. Here are the changes listed below.
The old terms:
- Received up to 3% cashback on all purchases and did not have to carry a balance.
- Interest rate was 12.99%
The new terms:
- Receive up to 10% cashback on any interest paid on the balance of the account if payment is paid on time.
- Interest rate now 29.99%
Another reason why the Peer to Peer Lending model has such oppurtunity to grow in this consumer credit environment. With the loan I got from Lending Club. I got $4.900 for 8.92% (simple interest not a revolving interest). Thank you Lending Club. Feel free to subscribe to this blog if you want to get notified when I update this blog.
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