I’ve written in the past about LendingClub.com. They are a peer-to-peer lending network where people just like you and me lend money to others and cut the banks out all together.
I had $375 that was available in my account to invest so I just logged in and reinvested it. Since I was last on the LendingClub.com site they’ve made some improvements which make it easier to fund notes as an investor.
And as an investor myself. I’m pretty happy with the returns so far. As of today my investments have returned 11.38%. Try getting that kind of money back with extra money in a savings account.
Now, I never invest money I am not prepared to lose nor money I need to get to right away. So be careful about investing cash you need to get your hands on in an emergency. While there is a process to cash out, it’s not instantaneous.
Now when you want to invest you can easily select the approach you want. This is an example of the loan mix for the ‘more aggressive’ investor.
The next screen shows you more information about the loans suggested when you click the ‘more aggressive’ button. As you can see, some are a higher risk than others. The LendingClub site tries to balance out the suggestions to manage risk for you.
Also notice the average interest rate is 16.65% but on these higher risk loans the default rate is higher also, 4.85%. That’s why your overall return is projected to be 11.08%.
For me, I actually put half my investment in the ‘more aggressive’ category and half in the ‘more conservative’ category to balance out the reinvestment.
While the interest rates are higher on the higher risk loans these are typically debt consolidation loans that people with some credit blemishes could not get elsewhere. I’m willing to give them a chance.
So if you are interested in becoming an investor like me, or want to borrow money, check out LendingClub for yourself. Let me know what you think about it in the comments below.
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Denied yet again. I know poor credit is risky, I understand this and this is why the incredibly high interest exists. If my credit score was >660 I wouldn’t be needing these types of loans. I have had an incredibly horrible divorce with an ex who continues to destroy my credit and has left me in a financial nightmare. I have a home I cant refinance as he continues to refuse to sign the quit claim deed for four years now! He uses my info to apply for hard pull inquiries and he then filed for bankruptcy leaving even more destruction to my credit report. Don’t certain situations have any impact on obtaining funds?? I sincerely need a loan to pay off all outstanding debt and obtain an attorney to deal with all of the above. There is the fact he continuously takes me to court over frivolous things to further deplete my finances as it is at least 3000$ retainer every time. He has served me again and I have zero recourse as I can no longer afford an attorney. I have no clue where else I can turn for some kind of miracle. I have a good job, make decent money and so frustrated I spent 10 years in college to be more in debt than ever. Living paycheck to paycheck with three kids is completely overwhelming and the stress is insurmountable.
need help but no help I cannot fill out foreign loan lender please of usa I could fill out the form the many forms and up front money Nigeria loan lender was a problem tIhe format I couldnot sign the forms I need some break missing trip to grocery store
Last night I set up a loan request with Lending club. I am really impressed. Already I have 10% funded after 12 hours. It is a true thrill seeing people invest in you. I love the fact that people from around the world get my interest money instead of Mr bank around the corner. Plus, the 10.99% rate I received is better than anywhere else I could get right now. Thanks for the post!
.-= Ted´s last blog ..Insurance fun! =-.
Ted
What’s the URL of your loan request and I’ll help fund it.
Steve
This is absolutely amazing and mind-bending! If only this had existed 6-7 yrs ago, we may have avoided or solved the credit crunch!!! The fact that people can lend to each other without a Bank or Credit Union is such an innovative and needed concept, and I applaud you for putting your money where your mouth is! Go Steve!
Hey Steve, nice write up. I have been checking out Lending Club since you mentioned it to me a few weeks ago. In fact I am in the middle of writing an article about how impressed I was with them after I checked it out. Of course this hacker thing taking out my site put everything on the back burner this week.
I think lending club is an excellent place for people with better than a 660 credit score to apply for sub 25K loan and it is also an awesome place for investors to get a great rate of return and help out fellow consumers at the same time.
.-= Damon Day´s last blog ..Debt Relief USA files Bankruptcy – Clients get Burned =-.