Lenny App Aims to Help Millennials Build Credit

Millennials have a new resource to help them establish credit scores, learn about budgeting, and get a line of credit if they need it.

A new app called Lenny launched at Texas tech festival SXSW in March, aimed at people ages 18-34 who may not have a well-established credit history yet, and who may not have received a great financial education.

Lenny will provide users with the ability to apply for a credit line, from as little as $100 to as much as $10,000. If users pay their balance in full by the due date each month, there will be a 0% APR. If folks carry balances over from month to month, interest rates will range from 4% to an average of 9.8%.

Credit limits will be raised each quarter if users make all payments on time; Lenny will raise limits by up to $1,000 every three months. This helps young people build healthy credit, as well as pay their bills and even their friends. With a built-in peer-to-peer payment platform, it’s simple for folks to make payments to friends who also have the app.

The first mobile-first lender

Lenny is an exclusively mobile-first lender, approving or denying accounts right from people’s smartphones. After downloading the app, folks apply for a line of credit. When it’s approved, users can deposit the cash into their bank account or send it to a friend.

CEO and co-founder Joe Bayen said, “Lenny is building a one-stop shop organization that serves the financial needs of a generation. We help individuals improve their credit scores by informing major credit bureaus when payments are made on time.” Bayen points out that good credit scores are needed to rent a home without a cosigner, get approved for a credit card and more.

Millennials in student debt need help

The average college graduate leaves school with $35,000 worth of debt, making Millennials a demographic in need of good financial advice and great credit options. The Lenny app will provide advice and guidance, with a “unique set of financial tools” and a blog offering financial education.

Lenny will also supply users with free credit scores, letting young people building credit keep tabs on how they’re doing. Transparency about credit reports and scores is a great help for folks getting their financial footing, and it used to be that people had to pay to see their credit score. “Young Millennials, piled high with student debt and college fees, already have enough of a handicap when they enter the labor market,” said Bayen. “Our whole team is ready and waiting to make sure they don’t face similar problems with their credit scores, either.”