“A 30-day, $250 loan from LendUp carries a fee of $44, about half the rate offered by competitor payday lenders in California, says Orloff. Over time, LendUp aims to transition responsible borrowers into a 2 percent monthly interest rate loan that can be reported to a credit union or bank. The information helps borrowers establish a credit history, which will help allow them to qualify for bank loans in the future.”

Read this piece here: National Journal and more at American Banker (Subscription required)