The Lending Club is an online peer-to-peer lending (P2P) platform that takes the banker out of the banking business. Investors lend money to borrowers directly through the website so that both can benefit from the interest rate set on each loan.
Equally important is that the entire transaction is done online so that the sometimes embarrassing face-to-face meetings that are common with bank loans are no longer required. This is a win-win situation as both the investor and the borrower benefit from the Lending Club process. Read more information about a loan here!
The Lending Club is legitimate for both investors and borrowers. This Lending Club Review, unlike some others, will review the service from both sides of the business. Before investing or borrowing from Lending Club, read my experience below. You can find more great ways to invest in our M1 Finance Investing Review.
Loan club at a glance
- Peer-to-peer lending, where borrowers are matched with investors
- Minimum investment of $ 1,000
- Average return between 5.06% and 8.74%
- Personal loans up to $ 40,000; Business loans up to $ 300,000; Medical loans up to $ 50,000
- Best suited for borrowers with good credit and higher income investors
Is the Lending Club Right for You?
Are you an investor who wants to earn more than the usual interest rate?
As a borrower, do you want to pay less than the banks charge?
The Lending Club changed the banking system because of its peer-to-peer lending model that makes these very promises. And after getting my first taste of P2P investing, I realized I needed to do a lending club review. It is a service suitable for those who only want to invest $ 1,000 or $ 20,000. And they offer a variety of credit products, from personal to medical to business – many of them unsecured.
That said, there are some downsides, or at least things to be aware of.
I’m going to cover the pros and cons of peer-to-peer lending through the Lending Club from three different perspectives:
- The investor
- The borrower
- My personal experience
Lending Club Review for Investors
With safe fixed income rates generally below 1%, the Lending Club offers a real chance for dramatically higher returns. In fact, you can get average returns between 5.06% and 8.74% (do I have your attention now?).
Those are attractive rates, but just so we can be clear about it, there are more risks with lending club investments than with certificates of deposit. In addition, as an investor, you must meet certain requirements. Remember, the higher the potential reward, the higher the risk.
Notes are not available in all states. To invest in Notes through the LendingClub platform, you must reside in one of the following states or the District of Columbia: Alabama, Arkansas, California, Colorado, Connecticut, Delaware, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas , Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Missouri, Mississippi, Montana, Nebraska, Nevada, New Hampshire, New Jersey, Oklahoma, Oregon, Rhode Island, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington , West Virginia, Wisconsin, and Wyoming.
If your state is not listed above, you may be able to trade debt securities through the secondary market. Currently, Ohio residents cannot invest in debt securities.
Depending on which state you live in, you may need to invest in the lending club. It is at least $ 70,000 a year in most states, but it may be more in some states. Generally, the income requirement does not apply if you have a minimum net worth of $ 250,000. The platform also requires you to invest no more than 10% of your net assets in Lending Club banknotes.
The minimum opening account at Lending Club is $ 1,000 and $ 25 is the minimum requirement to invest in a single note. For retirement accounts, the minimum opening amount is $ 5,500.
IRA lending club
You can also hold lending club investments as part of an individual retirement account (IRA). You can do this through a self-directed IRA from the Lending Club. The Lending Club IRA requires an initial deposit of $ 5,500. This amount enables you to invest at a higher level and eliminates the need for monthly management fees.
Lending Club IRAs come in two flavors: Traditional IRA or Roth IRA. As you know, I’m a huge Roth IRA fan. This is just another way to invest in your future. But I wouldn’t keep all of your retirement money there. Roth IRAs are not for everyone. So be sure to speak to a financial advisor before signing up for this particular type of investment. Find out more about the contribution limits of the Roth IRA here.
Selection of the bonds to invest
There are two ways to invest with Lending Club. Manual investing Here you browse the available loans and choose which one you want to invest in. But you can also use automated investing In this case, you set investment criteria and notes are automatically selected based on those criteria.
While you can invest in individual loans, it is generally best to buy them in fractions (which are referred to as Remarks). You can purchase banknotes in increments of $ 25. At the very least, you can get a fraction of the interest on 200 loans with a total investment of $ 5,000. This way you can minimize the risk of investing in a single loan.
Collect investment returns
It is important to understand that the debt securities you are investing in are not certificates of deposit. Each note represents a loan that will be repaid to you over the life of the loan. These payments include both interest and principal.
That is, at the end of the loan term, the loan will expire completely (including 100% of your original capital invested). Because of this, you need to continuously reinvest incoming payments as soon as you receive payments.
Club credit type borrowing and credit rating
The loan terms are either 36 months or 60 months and have fixed interest rates. More than 80% of the Lending Club’s loans are used to refinance existing loans and credit card balances. Similar to other peer-to-peer lending, borrowers are rated based on credit and credit scores, debt-to-income ratio (DTI), length of your credit history, and your recent credit activity – and credit rates are assessed.
Each loan is assigned a loan class ranging from “A” (highest) to “G” (lowest). The higher the grade, the lower the rate.
Within each letter class, the Lending Club also assigns a numerical rank between 1 and 5 (A1, A2, A3, A4, A5). These numerical sub-qualities take into account other factors such as loan size and duration. For example, a $ 5,000 loan amount would be considered low risk and would actually result in an improvement in the subclass. In contrast, the $ 35,000 maximum loan is a higher risk and could turn a B1 grade into a B4 or B5 grade, resulting in a slightly higher interest rate.
Buying and selling notes before they mature
The Lending Club offers its Note Trading Platform through Folio Investing, on which you can sell the remaining part of a Note under certain circumstances. This is a marketplace where investors can buy and sell Lending Club Notes to one another.
In order to participate in this marketplace, you must also open a Folio Investing trading account through the Lending Club. There are no fees for buying bonds on the trading platform. However, there is a 1% fee when selling a bond.
Risks in lending and how to minimize them
It is important to understand that investments held through the Lending Club are not bank assets and are therefore not insured by the FDIC. Individual loans can default and if they do, you lose that part of your investment.
In addition, a missed payment by a borrower means that you will not receive payment for that loan in that particular month. The Lending Club uses “best practices” to collect payments from criminal borrowers, but some will still default.
If a payment is overdue, you as the investor pay an 18% collection fee if the loan is at least 16 days overdue but there is no legal dispute. If a litigation is required, you must pay 30% of a lawyer’s hourly fee plus legal fees.
If the collection efforts fail and the borrower is obviously unable to repay the loan, the loan will be settled once it is 150 days past due. In this case, the remaining principal amount of the bond will be deducted from the investor’s account balance. All funds later withdrawn from the defaulted loan are proportionally returned to the investors. This is a known risk with investing in the lending club and you rarely see it in complaints people have about the site.
Just like investing in a portfolio of stocks and bonds, there are several ways you can invest in the Lending Club to reduce your overall risk. The most obvious strategy, of course, is to spread your investment across many different loans – hundreds, if you can.
You can minimize your risk by setting certain credit requirements. For example, you can choose to set a credit score that is a certain number higher than required by the Lending Club (currently 660). You can also highlight loans where borrowers refinance existing debt rather than taking on new debt. Employment stability is also a factor. A person who has been in their field for several years is likely to be more employable than a person who is just starting out.
A low DTI is also a positive factor. For example, you can ensure that the borrowers whose loans you invest in have a DTI of less than, say, 30%. This means that their monthly fixed costs, including their housing costs, new loan payment, and other fixed payments, do not exceed 30% of their total gross monthly income.
Lending Club investors are charged fees. However, the fees are only collected when you receive a payment from a borrower. For example, there is a 1% service charge for every payment received.
Investing through the Lending Club gives you great high income diversification in a fixed income portfolio. By investing only a portion of your fixed income allocation in Lending Club Notes, you can increase the overall return on your fixed income investments.
Lending Club Review: For Borrowers
In addition to investing at Lending Club, you can also borrow at Lending Club! Whatever your needs, you can get a fantastic deal through the Lending Club.
As a rule, you can get lower interest rates on loans through the Lending Club than through a bank. You can also apply for a loan without ever leaving your home. Everything is done online through the website, so there is practically no need for an awkward face-to-face meeting in the bank offices. And if your loan is approved, your money will arrive within a few days.
How the lending club’s credit process works
This is a simple multi-step process that looks something like this:
- Fill out an application on LendingClub.com.
- Your application will be evaluated and your credit rating checked (this is a “soft query” and will not negatively affect your credit rating).
- As described in the previous section, you will be assigned a risk class between A1 (highest grade, lowest rate) and G5 (lowest grade, highest rate). This grade, in turn, is based on a combination of your creditworthiness and creditworthiness, employment, income, and debt-to-income ratio (DTI).
- Your loan will be given an interest rate based on your risk level.
- You can get a variety of loan offers.
- Investors review your criteria and creditworthiness and decide whether to invest in them.
- Once all parties have agreed to the transaction, the loan will expire and your funds will be available within a few days.
If you have privacy concerns during the application process, you do not have to. Lending club investors will never know who you are, so you can borrow completely anonymously. The website also promises that it will never sell, rent, or distribute your information to third party websites for marketing purposes.
Profile of the borrowers of the credit club
The Lending Club reviews borrowers and companies in their credit review process.
You must have at least 600 credit points to even be considered. You won’t find this information anywhere on LendingClub.com as they don’t openly share their credit criteria. You can be assured that if you have reasonable credit, multi-year credit, and debt to income ratio, you will be approved for a loan.
According to the latest data available, the average borrower at Lending Club had:
- Credit Sore – 699
- Income – $ 74,414
- Credit rating – 16.2 years
- Non-mortgage debt to income ratio – 17.9%
Remember that many small business owners take out loans through the Lending Club. If you don’t meet these averages, you shouldn’t be deterred from applying.
What types of loans are there?
Most P2P lending sites offer either personal or business loans, but very few offer both. The Lending Club offers both business and personal loans and also issues specially designed medical loans.
Here is an overview of the types of loans offered through the Lending Club.
Lending Club personal loans can be used for almost any purpose. This includes credit card refinancing, debt consolidation, home improvement, bulk purchases, home purchases, car financing, eco-friendly loans, business loans, vacation, and moving house. You can even get a personal loan to have a swimming pool installed in your yard.
Credit card refinancing is perhaps the most interesting personal loan offer. When you combine multiple credit card balances into a single personal loan, This usually leads to an increase in your credit score. This is because paying off the credit card balances results in both lower credit utilization and a lower number of debts with open balances. Both results have a positive effect on the calculation of your credit scores by the credit reporting agencies.
Most other P2P lending venues limit their personal loan amounts to $ 35,000. The Lending Club recently increased its limit to $ 40,000. In addition, all personal loans are made through the Lending Club do not require collateral. This also includes personal loans that are used to buy cars.
All loans granted via the platform are installment loans that have a fixed interest rate and are paid out in full by the end of the term. These terms can be two years, three years or five years.
Many P2P lenders offer business loans, but what they really are are personal loans that can be used for business purposes. Lending Club has a current one Business loan program. In fact, these are not just business loans, but also business lines of credit.
Business loans are fixed-rate, fixed monthly payment loans with a term between one year and five years. The business line of credit works much like a credit card or home equity line of credit, and it gives you a line of credit that you can access when you need it. Interest is only charged on the amount of the outstanding balance. And when you pay off the remaining balance, you release the line for future loan purposes.
These credits and lines are available in amounts up to $ 300,000. The Lending Club does not require any business plans or projections or appraisals and property insurance. If you’ve ever taken out a business loan from a bank, you know that these requirements are practically industry standards.
In addition, no collateral is required for loans and lines raised for less than $ 100,000. For larger loan amounts, collateral is usually provided by a general lien on the company as well as personal guarantees from the owners of the company.
The purpose of loans and lines is almost unlimited. You can use them for debt consolidation, refinancing existing debt, buying inventory, purchasing equipment, setting up a new business location, remodeling your business, or paying for marketing expenses.
This is a type of loan whose time has really come!
Given the increasing deductibles for health insurances and provisions for co-insurance, Lending Club Personal Solutions gives you the opportunity to finance uncovered medical expenses. And here’s something more interesting: The loan can even be used for procedures such as hair restoration, weight loss surgery, fertility, and dental work – Procedures that are normally excluded from most health insurances.
The Lending Club offers three types of loans for this purpose:
- Fixed price plan
- Advertising plan without interest
- Promotion price plan
The Lending Club works with thousands of healthcare providers who accept funding agreements through the platform. It is always important to ensure that a provider is one of these participants before proceeding with procedures.
According to the Lending Club, “automatic refinancing means paying back your existing car loan and replacing it with a new one, usually from a different lender. Refinancing your car loan can help you save money by getting you a lower interest rate. Or, you can reduce your monthly payments by adjusting the term of your loan and freeing up cash for other financial tasks. “
On average, customers who choose to refinance their auto loans with Lending Club save $ 80 per month.
To qualify for auto refinance, your car must:
- 10 years old or newer
- Under 120,000 miles
- A car that is used for personal use.
In addition, your current car loan must include:
- An outstanding balance of $ 5,000 to $ 55,000
- Was initiated at least 1 month ago
- Payments remaining at least 24 months
Loan Terms and Prices
You can borrow any amount up to $ 40,000. While the loans are typically used to refinance debt or debt consolidation, they can also be used to borrow for other purposes, such as: Fixed-rate loans with a term of 36 months or 60 months are currently in effect.
How much you pay in interest rates and fees depends on the type of loan you are looking for as well as your credit quality.
As mentioned above, your interest rate is based on your credit rating, which can range from a high of A1 to a low of G5. A1 has a minimum APR of 10.86% APR. The currently highest possible interest rate is 35.89%.
The Lending Club has no application fee, but an origination fee that is typical of P2P lenders. The origination fee of the lending club is. So check the current conditions to see if they are right for you. The fee is deducted from the loan proceeds and therefore only charged when you actually take out the loan.
The Lending Club does not impose an prepayment penalty on any of its loans.
These loans have a completely different pricing structure. Depending on your credit rating and the financial strength of your company, the interest rates for business loans range from 9.77% APR to 35.89% APR.
Business loans and lines of credit also require an origination fee. This is between 3.49% and 7.99% of the loan amount. Again, there are no prepayment penalties for business loans and lines of credit.
Loans for patient solutions
Since there are three types of loans available at Patient Solutions, there are also three types of rates.
- Fixed price plans – This plan offers an annual interest rate of 4.99% to 24.99% based on the amount funded and the applicant’s creditworthiness for terms of 24, 36, 48, 60, 72 or 84 months. Pricing starts at just $ 105 per month for a case of $ 5,000 at 8.99% APR over 60 months.
- Interest-free advertising plans – This loan program offers 0% APR for terms of 6, 12, 18 or 24 months and loan amounts as low as $ 499 to $ 32,000. After the interest-free term has expired, a variable interest rate of 26.99% pa applies to the remaining amount (this agreement is similar to the one offered by CareCredit, but at a lower interest rate after the initial interest period of 0%). And if you can repay the loan within the 0% interest term, you can get funding for medical procedures without paying interest on the cost of an already expensive surgery.
- Promotional pricing plans– This plan offers 17.90% annual interest for 24, 36, 48, or 60 months on loan amounts between $ 1,000 and $ 32,000. After that you buy an annual interest rate of 26.99%. The minimum purchase price of $ 1,000 for 24, 36, and 48 months and $ 2,500 for 60 months. Payments start at $ 127 per month for treatment of $ 5,000 in 60 months. The total cost is $ 7,620.
Best of all, there are no prepayment penalties if you choose to repay your loan early.
The loan application process for loan clubs
You start the loan application process by checking your interest rate. This only requires general information and should not take more than a few minutes. This step does not affect your creditworthiness.
If you meet the loan criteria, you will be presented with several loan offers. You can then choose the offer that best suits your needs.
You then submit your application and your loan will then be listed for investor review. The investors are the ones who booked the capital that you are using as a loan. Your personal identity will be protected. Your name and other personal information will not appear in your entry.
Once set up, it goes through the verification process (see below), the loan goes through a final verification, and then the loan records are prepared.
The loan application process can take as little as three days according to the latest data, based on approximately 60% of borrowers who received offers through LendingClub. The time it takes to fund your loan can vary.
The Lending Club needs records to verify your income and employment. Income documentation may require pay slips, bank statements, W-2, retirement benefits, 1099 for investment income, or income tax returns. The Lending Club can contact your employer to verify employment.
As is the case with most lenders, P2P, or traditional lenders, they usually require copies of documents for identification purposes to comply with federal law.
All documentation can be made available by uploading to the Lending Club platform.
Loans for multiple lending clubs
The Lending Club allows you to take out two active personal loans at the same time. You must have made on-time payments for your existing Lending Club loan for 12 months and meet the current credit criteria for the second loan.
Loan repayment methods
The Lending Club sets up your payments so that they are automatically debited from your bank account. You will receive a reminder by email a few days in advance. You can make your payments by check, but there is a $ 7 processing fee for each such payment.
How I invest with Lending Club
What I really want to do today is show you how I invest in Lending Club. While we’ve already covered details about investing and borrowing at Lending Club, I thought I’d show you a little bit of my personal experience investing with the peer-to-peer lender.
I have been investing in Lending Club for a number of years. I haven’t invested a lot, and you’ll see this here in a minute because I really didn’t get it and wanted to test it out first. I wanted to test it out before 1) putting more money into it and 2) before recommending people to check it out.
Below is a screenshot of the website. I’ve signed in so you can see where I am. Right now I’ve invested a total of $ 2,200, so it’s not a huge investment by any means.
My annualized net return is 10.83%. So you can see right away that I’m already making more than the average investor in the Lending Club – almost a full percentage point more. It’s not because I’m a singularly good investor. I’m actually very passive in choosing my notes, which I’ll show you right here.
I currently have $ 525 in cash in my Lending Club account that I need to invest and that is exactly what I am going to use today to show you how to invest.
I love the Lending Club because they keep things simple. For the people who don’t want to spend a lot of time researching, they make it very, very easy by choosing option one, option two, or option three. Let’s just say you have a high tolerance for risk and look at the 17% figure. You look at this number. They drool over it. You want it. That’s how much you want to earn.
A quick click on this option will show you where to put your banknotes (the agreements you have made with people to whom you lend your money). They are classified similarly to a certificate or a bond.
First of all, you’ll find that you don’t have any of the Type A or Type B investors going in the more aggressive direction. These are your higher credit people. They are less likely to default on their credit, so this is definitely more of a high-yield approach when it comes to peer-to-peer lending.
Of this $ 525 that I have to invest, $ 100 goes into C notes, $ 200 into D notes, $ 150 into E, and $ 75 into F. Immediately, the Lending Club breaks this automatically for you. And I can’t tell you how much I love that! That’s actually my strategy. I am not choosing the third option. I usually choose option one, but immediately the notes are broken down for you.
They also show you that your average interest rate for it is 17.9% (in this example). However, since some of these people default on their loans, they estimate that you will lose 4.42% due to the default.
Then there is a 0.52% lending club fee so your projected return on investment after all that has been said and done will be approximately 12.25%. And this is approximately. You may be paying back all of these people where you are all good and you actually make more money, but that should just give you an idea.
Borrowing club notes
Gehen wir einfach ganz schnell zum nächsten Schritt. Hier ist ein weiterer Bereich, in dem Sie sehen können, wofür einige dieser Kredite verwendet werden. Beispielsweise wird möglicherweise Folgendes aufgelistet: Kreditkarten, Darlehen zur Schuldenkonsolidierung, Darlehen für kleine Unternehmen und mehr. Sie können tatsächlich sehen, was diese Notizen sind.
Hinweis: Sie sollten wissen, dass ich diesen Prozess in Echtzeit durchlaufe, damit ich Ihnen meinen Denkprozess auf dem Weg zeigen kann und Sie eine echte Lending Club-Bewertung erhalten, wenn ich von Bildschirm zu Bildschirm gehe.
Der verbleibende Betrag gibt an, wie viel mehr diese Person ausleihen muss, um die Schulden zu begleichen. Wenn Sie noch einen Schritt weiter gehen möchten, können Sie jetzt mehr über die Person, ihr Bruttoeinkommen pro Monat, ob sie ein Hausbesitzer ist oder nicht, ihre Beschäftigungsdauer, ihren aktuellen Arbeitgeber, wo sie sich befindet, ihre Schulden sehen. zu Einkommen und ihre Kredit-Score-Bereich. Es gibt Ihnen nur viel mehr Details über den Kreditnehmer.
Wenn Sie möchten, können Sie ihnen auch Fragen stellen, wenn Sie nicht sicher sind oder nur eine Bestätigung benötigen.
Der Lending Club gibt Ihnen einige direkte Fragen. Sie haben das in den letzten Jahren ein wenig geändert (ich denke wegen eines Datenschutzgesetzes), aber sie geben Ihnen viele der guten grundlegenden Fragen, die Sie stellen müssen.
Eine Sache, die ich nicht erwähnt habe, ist, dass von den 525 US-Dollar, die ich investieren muss, normalerweise nur 25 US-Dollar für jede einzelne Note verwendet werden. Hier kommt also die Diversifikation ins Spiel, bei der Sie nicht alle Eier in einen Korb legen.
Ich werde Option eins ausprobieren. Ich bin mit dieser Option viel zufriedener. Meine prognostizierte Rendite wird niedriger sein, aber wie Sie sehen, geht es mir tatsächlich besser als vorhergesagt. Ich glaube, ich habe am Anfang vielleicht mit hohem Risiko investiert, aber normalerweise habe ich mich an Option 1 gehalten. Sie sehen, ich habe viel mehr B-Kreditnehmer und keine auf der F- und G-Seite. Ich bin nicht sehr auf die hohe Ausbeute. Ich bin mit diesem Aspekt gerne etwas konservativer. Sofort brechen sie es auf und es sieht so aus, als würde ich meinen letzten Eintrag überlappen. Mal sehen, ob wir das klären können.
Die andere Sache ist auch, dass Sie tatsächlich den Begriff der Notiz wählen könnten. Der Lending Club begann zunächst mit einer dreijährigen Laufzeit von 36 Monaten. Sie bieten jetzt eine 60-Monats-Note an, sodass dies tatsächlich eine etwas höhere Rendite darstellt, aber Sie sind an Ihr eigenes Geld gebunden. Sie können diese Schuldverschreibungen auch verkaufen. Wenn Sie sie also nicht für die Laufzeit halten möchten, können Sie einen Käufer finden – genau wie beim Verkauf von Aktien auf dem freien Markt.
Also gut, mal sehen, ob ich das endlich herausfinden kann. Ich möchte nur investieren. Ich hätte mit der ersten Option beginnen sollen. Lasst uns noch einmal von vorne anfangen. Das tut mir leid.
Fahren wir mit Option 1 fort. Ich kann dort tatsächlich hineingehen und Notizen selbst auswählen. Ich kann einer Note mehr Geld hinzufügen, einer anderen Note etwas Geld wegnehmen usw. Sie haben diese Fähigkeit! Sie haben auch die Möglichkeit, Ihre eigenen Portfolios von Grund auf neu zu erstellen. Wenn Sie also alle verfügbaren Notizen durchgehen möchten, können Sie dies auch tun. Ich persönlich habe kein Interesse daran, also tue ich es nicht. Mit 525 USD werde ich in 21 verschiedene Schuldverschreibungen investieren und meine durchschnittliche Rendite beträgt ungefähr 9,58%. Ein kurzer Blick auf die Notizen und wir werden die Bestellung aufgeben.
Sie können Ihrem Portfolio dann einen Namen geben. Ich habe das nicht sehr gut gemanagt, also werde ich es einfach “Portfolio 10” zuweisen und wir können von dort aus fortfahren. Ich werde bald eine Bestätigung erhalten.
Bemerkenswert ist, dass ich gerade 525 US-Dollar in 21 Einzelnoten investiert habe. Höchstwahrscheinlich erhalten nicht alle dieser Banknoten die gesamte Finanzierung. In einigen Fällen erhalten Sie nicht die Investition, nach der Sie ursprünglich gesucht haben. In diesem Fall erhalten Sie eine Rückerstattung. Von dort aus können Sie einige neue Notizen finden. Es wird höchstwahrscheinlich passieren, nur damit Sie es wissen.
So weit kann man bei Lending Club investieren. Es ist so einfach! Soweit ich dies empfehlen würde – dies ist kein Ersatz für ein Sparkonto. Dies ist keine Bescheinigung über den Ersatz der Einzahlung. Obwohl Sie eine Drei- oder Fünfjahresnotiz erhalten können, können Sie sich das als Drei- oder Fünfjahres-CD vorstellen.
Wie der Lending Club in mein Gesamtportfolio passt
Wie sehe ich den Lending Club in meinem gesamten Anlageportfolio? Nun, wir haben bereits unseren Notfallfonds und unser Sparkonto – dies ist nur eine Ergänzung zu dem, was ich in meinen Aktien mache. Like I said, I only have a small investment now, but after doing my initial Lending Club review we are planning on shifting some more money there.
We were building a house, had some other improvements we were doing, and having a third child, so we wanted to have more in cash then we probably should, but we just felt more comfortable doing that. Now that we have some of those things out of the way I am definitely a lot more comfortable moving some more cash into Lending Club and start making some more interest.
I should also say I have never had any notes default on Lending Club up to this point. I’ve been doing it for just over two years, and I believe and have not had a default yet. I’m not saying I won’t, but I haven’t had one yet. If I do I will definitely report it.
If you have any more questions let me know. You’ll find an affiliate link, so if you do click and open an account I do earn a bit of money for you doing that. You can also go to LendingClub.com directly. I won’t get the commission and that’s fine by me as well.
If you have more questions on my Lending Club review or if you have any experiences, please share. I’d love to hear more about it as this becomes more of a mainstream investing approach for a lot of people.
How Does Lending Club Compare?
Whether you are an investor looking for an above-average rate of return, or a borrower looking for more affordable loan programs, you’ll find what you’re looking for at Lending Club. Here’s how Lending Club compares to a few competitors.
- Est APR: 10.68-35.89%
- Loan Term: 36-month or 60-month
- Loan Amount: $1,000-$40,000
- Min Credit Score: 600
- Est APR: 7.95 – 35.99%
- Loan Term: 3 to 5 years
- Loan Amount: $2,000 – $40,000
- Min Credit Score: 640
- Est APR: 5.99 – 21.20%
- Loan Term: 2 to 7 years
- Loan Amount: $5,000 – $100,000
- Min Credit Score: 648
Remember, only you can make the determination of what’s right for you when it comes to peer-to-peer lending. I wouldn’t recommend putting all your eggs in the Lending Club basket, but it’s certainly an appropriate choice for well-established investors or borrowers needing some money.
For more information, you can read a full review of Prosper and Sofi.
The bottom line
Lending Club is really geared for borrowers with good to great credit scores. Their loans are a real boon to small business owners and others who have been affected by the banks tightening all their lending criteria.
The size of the company and the now several years of experience as a lending marketplace allow both borrowers and investors to know they are working with a solid entity. While the approval process takes a little longer than with some of the other P2P lenders, this is because they are dedicated to allowing individuals pick the loans they want to invest in rather than keeping a large pool of money from investors.
Take a look at Lending Club today and see if it’s right for you!
Please note: This article contains affiliate links that may result in providing me with a commission for you signing up for the services listed. Still, my opinions are my own and I wouldn’t steer you wrong.
Disclaimer: All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.95% to 35.89%*. The origination fee ranges from 1% to 6% of the original principal balance and is deducted from your loan proceeds. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at the time of application. The average origination fee is 5.49% as of Q1 2017. In Georgia, the minimum loan amount is $3,025. In Massachusetts, the minimum loan amount is $6,025 if your APR is greater than 12%. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months. Borrower must be a U.S. citizen, permanent resident or be in the United States on a valid long term visa and at least 18 years old. Valid bank account and Social Security number are required. Equal Housing Lender. All loans are subject to credit approval. LendingClub’s physical address is: LendingClub, 71 Stevenson Street, Suite 1000, San Francisco, CA 94105.
†Per reviews collected and authenticated by Bazaarvoice in compliance with the Bazaarvoice Authentication Requirements, supported by anti-fraud technology and human analysis. All reviews can be reviewed at lendingclub.com