Upgrade, Inc. has announced a new consumer product entitled “Personal Credit Line.” The new product was revealed during the annual LendIt Fintech conference in San Francisco. The line of credit is designed to combine the low cost, fixed rate and monthly amortization of personal loans with the flexibility and utility of lines of credit typically obtained through credit cards.
According to the company, consumers may get approved for up to $50,000 and have the control to draw on the line when they need it. Similar to an installment loan, each transaction has a fixed rate and term. Customers are only charged interest on the amount they use, and the funds are deposited directly into their bank account. Payment terms will vary from 12 to 60 months.
“At Upgrade, we’re focused on building the next generation of credit products that will help our customers maintain or improve their good credit standing and give them affordable credit so they can build a bright future,” said Renaud Laplanche, co-founder and CEO of Upgrade. “We designed the Personal Credit Line to give consumers the two things they want most: the flexibility to access funds when they need them, and the predictability of a fixed rate and equal monthly payments.”
The personal credit line is designed to help consumers planning for expenses over a period of time, such as a home improvement project or moving expenses or furnishing a new apartment. Unlike a home equity loan or home equity line of credit (HELOC), consumers can obtain approval for a Personal Credit Line in a matter of minutes and there is no need for collateral and an appraisal process.
“Today consumers expect transparency and flexibility in their financial life and Upgrade is leading the charge with the Personal Credit Line,” explained Micky Malka, Managing Partner at Ribbit Capital and Upgrade Board member.
Upgrade has created a waiting list for individuals interested in applying.