I cannot stop talking about how much I am loving Lending Club. I initially fell in love because it was the site that gave me the best loan when I needed to consolidate my credit cards so that I could get out of debt.
After paying off my debt I decided to invest in Lending Club and even though I have had a few poorly performing loans I do not regret anything about my decision.
I am currently receiving a return of 5.14% on my investment which is more than what is available on savings accounts. I know I can get a higher rate of return by investing in the more risky loans but I have decided to stick to the low risk loans in order to preserve my investment.
Here is the breakdown of my loans at present:
-51 current and active
-20 fully paid
-0 late 16 to 30 days
-2 late 31 to 120 days
-4 charged off
I feel really blessed that out of all my loans I have only had 4 total that were charged off and those were all the minimum investment of $25 each.
I only invest $25 per loan to spread out my risk when possible, although I did invest more than that in TWO loans because they were people that I personally knew. One of those loans has been fully paid off and the other one is only four months old but I have confidence in it being repaid.
I am receiving slightly over $25 in repayments on average every month, so I will continue to fund a new loan for $25 every month. I withdraw the money from Lending Club on a weekly basis because the money does not earn interest while it is sitting in the account. I track my receipts on a spreadsheet and every month that I collect at least $25 I create a new loan the following month.
How is YOUR investment doing right now?
If you have not already invested in or borrowed from Lending Club you can use one of my referral links to sign up. You will get a bonus for signing up and I will earn a referral bonus so we BOTH win!!!
I have not invested with Lending Club but will be considering a loan in 2012. I am actually trying to pay off some debt on my own but will probably be looking for better interest rates.
I do really well over at Prosper, and currently get between 10 and 12% interest on the loans that I have with them. It’s absolutely incredible, and something that I’m going to be pursuing more of during the coming year. I love the fact that you can take the payments that you get from the loans and reinvest them so that you only have to put money in once to get repeated interest.
Congratulations on your success with Prosper.
I didn’t know about Lending Club, but it sounds quite interesting – I will definitely check it out.
A lot of people love companies like Lending Club for borrowers. It’s a great business idea. And if i needed money and I needed to find an alternative to credit card usury, I’d be the first in line to apply for a loan. If you owe money, you could potentially save a huge amount by refinancing your debt through Lending Club.