Comments on: Lending Club Review – Peer to Peer Lending Site

By: Simon

Simon — Mon, 15 Feb 2010 13:59:15 +0000

Lending Club lenders ask specific information of the borrowers. This may be useful for the lenders, but poses significant risks for the borrowers. If you are a borrower, DO NOT supply detailed employment or financialinformation which lending club then posts publicly for all to see. Your employer or relatives or friends, or people out to defraud you, can get hold of this information.
I am currently forwarding these security concerns to my Attorney General and the local consumer advocate.
Prosper.com is a much safer, cleaner, and more reliable peer to peer lending site.

By: Bruce V

Bruce V — Mon, 15 Feb 2010 06:05:57 +0000

Once you invest, how do you get your money out after the loans are paid? Or is the money continually reinvested?

By: Jack

Jack — Sun, 14 Feb 2010 23:16:23 +0000

@Mercy – it’s interesting to hear your story, especially given that the average return for investors according to a Javelin research report is 9.05%. It would be interesting to know the variability of returns, and what the worst and best returns have been for investors. I’ve been investing with Lending Club for about 4 months now, and haven’t had any defaults. My return so far is averaging nearly 14%.

By: Mercy

Mercy — Thu, 28 Jan 2010 19:38:36 +0000

I started using Lending club in 2006. At first it was nice… but after 3 years I’ve lost quite a bit of money due to defaulted or charged off loans. I know it’s probably closely related to the busted economy… but it still sucks that after 3 years My net profit is negative 2 dollars. =)

By: MoneyNing

MoneyNing — Sun, 10 Jan 2010 16:08:30 +0000

Their difference is in only accepting high credit quality. All the borrowers have an average FICO score of 700+ currently, but this little tweak works extremely well.

The loans I’m doing are doing well, but note that you will have defaults. Though if you spread your loans into as many as possible, default rates will diverge into historical norms.

By: Clint

Clint — Sat, 09 Jan 2010 20:37:47 +0000

How is this website any different than other peer to peer sites that have failed? I do not see anything that makes the concept and take on the idea any different than say Proper.com, which has had a huge default rate on most loans given?

By: Shane

Shane — Mon, 21 Dec 2009 22:31:34 +0000

Lending Club out performs most investments and at a risk less than traditional investments (not including CDs, Savings Accounts and Money Market). Diversification, however, is the key to maintaining low risk. Never invest large amounts in one loan, split it in $25 increments and you should be fine.

Yes lending is risky, but banks have been lending forever. If you qualify your risk properly you won’t have any problems

By: MoneyNing

MoneyNing — Wed, 04 Nov 2009 00:50:37 +0000

Once you invest in a note through Lending Club, you will get payments as the borrower sends them on a predefined schedule. You can also sell your note through folion, which is a open market place for these types of notes. In there, you can buy and sell your notes at any price you wish (face value, above, or below what the outstanding balance of the note is).

As linking, it’s like any online bank account. You set it up and transfer is done through ACH. You can wire money into the lending club account, and I do not believe you can wire money out but ACH works fine for me so far.

By: Jeff Curious

Jeff Curious — Wed, 04 Nov 2009 00:38:39 +0000

I am researching whether or not to become a Lender investor in the club. At this point, I am unclear on how can sell the note or route borrower payments to an external account. (e.g. my personal checking account).

… any insight would be helpful …

Regards cosmo …

By: P-Walk

P-Walk — Tue, 13 Oct 2009 00:05:50 +0000

I am fairly new to P2P lending and the Lending Club, but I see it as a very interesting concept and a new investment opportunity to those investors with less capital to invest who typically only have the stock market to “gamble” in. The quote, “the rich get richer” is so true of our investment opportunities, very little opportunities exist to somebody with only $15,000 to invest. With the Lending Club, somebody can almost become their own bank, pooling equity and investing it through available loans. I am highly involved in the institutional real estate investment world, and rarely would somebody with >$15,000 have the opportunity to invest in a commercial or residential development or opportunistic fund that is our raising capital to take advantage of the next real estate cycle. My question to you investors, would this opportunity interest you??