Lenny is on a great path to make it easier for college students to start building their credit history in a responsible way.
“I applaud what the CFPB is doing,“ says Joe Bayen, cofounder and CEO of a fintech startup called Lenny, which offers young borrowers credit lines up to $1,000 and a chance to improve their credit scores through a partnership with FICO. “We offer increasing balances based on how a user behaves. Everything is aimed at upward mobility and helping people.“
Since students were no longer exposed to credit cards, a large swath of them could no longer start building their credit history at an early age, which is an important component of the FICO score,“ said Joe Bayen, chief executive and founder of Lenny, a startup that is looking to extend credit to young people. “Though banks used to offer excessive interest rates, it still gave an opportunity for students to build a credit history.
A sort of microlender that reports your payments to two of the three major credit bureaus, Lenny can help you build your credit score and can be a cheaper way to get emergency funds than going to a payday lender or getting hit with multiple overdraft fees.
Lenny focuses on providing microloans (up to $500 initially) to college-age students, using their educational background in general and their GPAs in specific, to help establish creditworthiness.
As young people move through life, access to financial services becomes increasingly important. It’s crucial that they receive the kind of education and service that Lenny provides in order to understand their creditworthiness in the eyes of lenders.
Lenny drills deep to gain a complete picture of a Millennial applicant. After they determine a young person’s credit risk, Lenny shares solid personal finance advice a Millennial can take to the bank.
Lenny is a new app that plans to target the millennial generation’s borrowing needs. To make it even easier to disburse loans to its tech savvy customers, Lenny has partnered with Dwolla.