Some of you may have already heard about or seen a change to your Lending Club account. Last week they added an on/off switch for adjusted net annualized return. Often times, I am met with skepticism when I tell people about my investment in Lending Club and it is soon followed by a question of my return on investment. I feel that I can now give them a fairly accurate number without having to do any math. [Read more...]
Positive Returns with LendingClub
Awhile back, LendingClub had a part of their site that stated something to the effect that no investor with 800+ notes had negative returns. They have since removed this and I had not seen any statistics that stated something similar until yesterday when I was browsing the site.
1 As of May 24, 2013, over 99% of investors with 100 of more Notes and with no single Note accounting for more than 2.5% of their total investment, have positive returns. To meet this criteria you would need to invest a minimum of $2,500 and none of the Notes could be greater than 2.5% of your total investment. The foregoing is not directed to the specific investment objectives, financial situation or investment needs of any particular person and should not be considered investment advice. You should consider reviewing the prospectus with a financial advisor prior to investing. Past performance is no guarantee of future results.
This is a far stretch from the diversification they use to advertise and is certainly comforting for people with smaller accounts (like us). So the message today? Stick with investing $25 per note for smaller accounts and you *should* see a positive return. Invest in higher grade notes that are recently listed and you should see higher positive returns.
Welcome to LendingClub Statistics!
As the name implies, we are here to provide insight and statistics into the peer-to-peer lending industry. In short, companies like LendingClub and Prosper aim to cut out the middle man (banks) so average people like yourself can lend/borrow to other individuals around the U.S. For peer lenders, it is a great opportunity to earn fantastic yields. For borrowers, it gives them the opportunity to borrow money at an affordable rate while not being at the mercy of interest rates of credit cards, business loans etc.
Brian and I have both have accounts through LendingClub and will provide updates periodically of our experiences.
We hope you find the information here of value.
-Brian and Ryan