Lending Club Blog

New FICO Rules May Benefit Peer-to-Peer Loan Borrowers

We all know how consolidating debt with a person-to-person loan can help to save you money and get you out of debt more quickly. New FICO scoring rules may provide an added benefit to peer-to-peer loan borrowers: a boost in their credit score.

In their March 2008 issue, Money magazine reported that Fair Isaac, the company whose formula determines your credit score, is updating that formula. There were a few areas where this update could affect your credit score. One area in particular, having a few kinds of credit, could favorably impact everyone with a peer-to-peer loan.

As a result of this update, having an installment loan, like a P2P loan from Lending Club, in addition to other forms of credit, like credit cards, could give your score a boost. Having these multiple types of credit, along with making regular payments and maintaining low balances was reported to raise credit scores by as much as 25 points.

By consolidating debt with a peer-to-peer loan, you are not only taking on a different kind of debt, but you will also be able to maintain a low balance on your credit cards. You’ll be making monthly payments to your loan, so that criterion will be met as well. As you pay off your loan, you will be lowering your credit utilization, which could help your score even more.

It is expected that these changes may take some time to be adapted by the three major credit bureaus. In the meantime, you can rest assured that your peer-to-peer loan may be helping you in more ways than you expected.

Monday, April 28th, 2008 at 6:30 am

Comments (0)


Welcome Home

Lending Club named #5 on Forbes’ Most Promising Companies List

Get ready for tax season with Lending Club’s Tax Form Guide

New Adjusted Return Metric

See more
Lending Club Awards
  • Archives z

Recent Posts

Welcome Arkansas, Iowa, and Oklahoma Investors!

We recently welcomed residents of Arkansas, Iowa, and Oklahoma… Read More »
July 14, 2015

Renaud Talks Marketplace Lending on Jo Ann Barefoot’s Podcast

This week, CEO Renaud Laplanche… Read More »
June 24, 2015

Lending Club Teams Up with Sam’s Club to Deliver Small Business Financing

Read More »
June 8, 2015

New Lending Club TV Commercial Makes its Debut!

Last week we began testing a new TV commercial showcasing… Read More »
May 26, 2015

Lending Club Honored with Entrepreneurial Company of the Year Award from Harvard Business School Association of Northern California

Read More »
May 15, 2015

Renaud Talks to Jim Cramer

A few months ago, Jim Cramer remarked that he… Read More »
April 15, 2015

Lending Club 2 – Back in the Race

We’re excited to see Renaud back at the helm!… Read More »
March 26, 2015

Lending Club Store’s Grand Opening

We were thrilled at the support we received from… Read More »
March 20, 2015

LendIt is just one month away!

Congratulations to the LendIt team, who rang the opening… Read More »
March 13, 2015

Nearing Retirement – How an IRA Can Help

An Individual Retirement Account (IRA) can help you prep… Read More »
February 25, 2015


We went public today!

Ringing the bell this morning at the New York… Read More »
December 11, 2014

New and Improved Statistics Page

We recently redesigned our Loan Statistics page to make… Read More »
November 13, 2014

Lending Club Honored with Economist Innovation Award

This month I was honored… Read More »
October 15, 2014

Welcome Vermont Investors!

Today, we’re thrilled to welcome residents of the state… Read More »
September 4, 2014

We filed to go public today

We filed a registration statement with the SEC today… Read More »
August 27, 2014

Our Billion Dollar Quarter

We’re excited to announce  that we’ve facilitated over $5… Read More »
July 8, 2014

Is Lending Club Available in My State?

Is Lending Club available in my state? That is… Read More »
July 7, 2014

Lending Club Joins Senator Cory Booker to Discuss Improving Access to Capital for Small Businesses

Read More »
June 20, 2014

Lending Club Named a CNBC Top 50 Disruptor for a Second Year

For the second year in… Read More »
June 17, 2014

PRIME is now Automated Investing

Lending Club is excited to announce that PRIME has… Read More »
May 14, 2014
View All w