This is just a quick note to say that Lending Club appears to have reduced interest rates for borrowers by around half a percentage point. I first noticed this when I logged in to select notes for investment last week, and have seen mention of it elsewhere on the web. Rates now range from a low of 6.39% for those with the best credit to high of 21.64% for the most risky borrowers.
As an investor, I’m not crazy about this change, as I’ll earn a bit less while shouldering the same risk that I’ve always faced. Prospective Lending Club borrowers, on the other hand, should be thrilled with this move. If you’re looking to refinance your high interest debt, now appears to be a good time to do so.
I’m still looking for an announcement to provide some context for this change, but haven’t found anything yet. I’ll update if/when I know more.