LendUp is a payday loan company that has raised a $50 million credit debt facility from Victory Park Capital. This is in addition to the $18 million in equity funding that LendUp raised from Google Ventures, Data Collective, QED and several others.
LendUp wants to make the loan experience for millions of unbanked Americans fair and transparent, according to TechCrunch. Instead of forcing Americans to turn to predatory lenders and banks, LendUp wants to help people that are looking for ideal short-term financial options.
Consumers that have poor or no credit can apply for small-dollar short-term loans (up to $250 for up to 30 days). Customers will build credit and move up with these loans.
LendUp uses Big Data to do instant risk analysis and evaluate creditworthiness. The data weeds out people that have bad credit for a reason from people that have become victims of the system. LendUp has silver, gold, and higher statuses to score users.