Lending Club Update #2

Back on April 14th 2009, I posted an update on my P2P Lending with Lending Club. So far I have funded 116 loans of which 107 are issued and current, 2 are Late 31-120 days, 4 have been fully paid, and 3 have defaulted. Overall, very good performance compared to my previous Prosper account. My monthly income is now approaching ~$85 a month. My return on my portfolio is currently 12.52%. I recommend anyone looking to generate an alternative income stream to take a look at P2P Lending and Lending Club.

Friends of Lending Club Receive $64.62 to invest this Holiday Season

Anyone want $64.62 for FREE?! For the remainder of 2009, Lending Club will give each investor I refer $64.62 to start peer investing. All you have to do is open an account to receive the money. Why $64.62? Banks made $6.462 BILLION in profits last quarter and Lending Club doubts you, your friends, your family or colleagues got a piece of that action. Check it out.

Free $25 for joining Lending Club!

Get a free 25$ for starting a Lending Club account as a lender. New Investors Get $25 to Invest in Lending Club notes. With average net annualized returns of 9.66% it's a great time to join Lending Club! I am currently earning net annualized return of 12.31% on my loans! Check it out here: https://www.lendingclub.com/invite/invite.action Type in this referral code when registering: Prezman615

Lending Club Update #1

I continue to be a fan of Lending Club and plan on increasing my investing with the site. Too date, none of my 11 loans have EVER been late (much different from Prosper where almost 40% of my loans have DEFAULTED). Here are my lending parameters for Lending Club:

Rates: A - D
Credit Score: 660+
DTI Ratio: <10%
Delinquencies: 0
Funding status: 75% and higher
Loan Amount: $10,000 or less

These parameters have provided me with 0 defaults and a 12% return so far. I will update this blog over the course of 2009 with my lending progress.

Lending Club

My Lending Club loans continue to all be on time. This is encouraging for the idea of P2P Lending and bodes well for its future of the industry. Given the current credit crunch, it is something to consider as an alternative way to get a loan if you need one. I will continue with Lending Club and start putting more money back into it this year.

Done With Prosper.com

Well, my stock picks are not looking too good at the moment. Who would of thought the market would collapse like that. But, check back in a year or so and they may not look so bad...

In previous posts I have discussed prosper.com (Peer-to-Peer Lender) as a nice alternative to invest your money. Well, due to a number of my loans on Prosper defaulting over the last couple of months, I have decided I will no longer be investing in any loans on the site going forward. Their credit requirements are too lax and their are too many defaults among their borrowers.

If I do invest in Peer-to-Peer Lending in the future, I will be using lendingclub.com where the credit requirements are more strict. I have nine loans with lending club, and so far, for all of them, the borrowers have paid on time.

Lending Club

There is new Peer-to-Peer lending site up and running now called Lending Club. It works similar to Prosper. According to their site, on average, you can earn 12.3% returns as a lender, and borrow money for as low 7.62% if you have a stellar credit. You can bid on loans in increments as little as 25$, or use 500$ and have them create a portfolio for you based on your risk aversion. I have been using Prosper for almost a year now so I'm going to try this site and see how it is.