LendingClub Introduces LevelUp Checking Account with 2% Cash Back on On-Time Payments

LendingClub has introduced a new LevelUp Checking account that rewards personal loan borrowers with 2% cash back for on-time monthly payments, with no reward limits. This feature is five times more valuable than similar perks offered by competing lenders. Borrowing from the same financial institution can be convenient, but it's still important to pursue the best loan possible.

LendingClub has introduced a novel feature designed to enhance the personal loan experience for its customers: the LevelUp Checking account. This new account offers 2% cash back for every on-time monthly personal loan payment, with no reward limits. This innovative feature is particularly valuable, as it is five times more beneficial than similar perks typically offered by competing lenders [1].

The LevelUp Checking account is part of LendingClub's broader strategy to incentivize good financial behaviors and reward customers for their on-time payments. According to Mark Elliot, LendingClub's chief customer officer, "We want to [incentivize] those really good financial behaviors and not just have our customers feel like, ‘OK, I’m paying this loan on time,’ but ‘I’m getting rewarded for doing the right thing’" [1].

The cash-back reward can be significant, especially for borrowers with multiple loans or large balances. For example, an average personal loan of $6,200 with a 21.8 annual percentage rate (APR) on a three-year repayment term would net the borrower nearly $5 each month in cash back [1]. This reward can be used to pay off the loan faster, build an emergency fund, or achieve other savings goals.

LendingClub's innovation sets it apart from other lenders, which typically offer interest-rate reductions or other perks for automatic payments or having a bank account with the lender. While these benefits are valuable, they are often limited and do not offer the same flexibility as cash back [1].

The LevelUp Checking account also includes 1% cash back on gas, grocery, and pharmacy purchases made using the debit card, further incentivizing responsible spending and reducing reliance on credit cards [1]. This feature is particularly relevant given the record-high credit card debt among Americans, with high-income individuals often carrying substantial debt despite their earnings [2].

While borrowing from the same financial institution can be convenient, it is essential to pursue the best loan possible, considering factors such as interest rates, repayment terms, and fees. LendingClub's new feature could be a tie-breaker when comparing loan offers from different lenders [1].

In conclusion, LendingClub's LevelUp Checking account offers a unique and valuable reward for personal loan borrowers, setting it apart from competing lenders. This innovation not only incentivizes good financial behaviors but also provides significant benefits to borrowers.

References:
[1] https://www.bankrate.com/loans/personal-loans/lendingclub-introduces-cash-back-for-personal-loan-borrowers/
[2] https://www.pymnts.com/news/digital-banking/2025/lendingclub-ceo-says-responsible-spending-deserves-rewards-as-credit-dependency-soars/