With an easy sign-up process and competitive return rates, investing with Lending Club is worth checking out. Not only are you helping others in need of a loan, you are also making an informed investment that is fun and easy to track.
Signing up was easy. After filling out the basics, I entered my direct deposit and withdraw bank account information. For security, LendingClub deposited test funds into my account to verify its authenticity. The funds showed up the very next day, which I found impressive. I then deposited funds into my LendingClub.com account, and I was ready to start investing in less than five business days.
I enjoy browsing potential borrowers as I choose with whom to place my investments. I can see each borrower’s credit worthiness, debt-to-income ratio, total open accounts, and the amount of debt owed. Many borrowers even post how they intend to use the funds and why I should invest with them. I find this incredibly helpful as well as interesting.
The first two borrowers with whom I chose to invest did present a problem that is worth noting. Although the process only took a day or two for the borrowers to receive funds and for the loan to begin, both listings were canceled and removed. This was most likely due to false or unconfirmed borrower account information or the borrowers backed out. Either way, I was frustrated to lose four more days before I could invest.
I am now invested with two new borrowers: one with a low-risk loan at 6.03%, and the other with a higher-risk loan at 14.33%. I have been invested for two weeks now, and I like how Lending Club updates my daily-earned interest and shows me how well the account will do if my two borrowers pay their loan payments on time.
It is important to keep in mind that a borrower will pay off a loan over the course of three to five years. This does not mean that your investment is stuck until the loan is paid in full. You can trade, sell, or by existing notes on a secondary trading platform called FolioFN.
There is a fee for using LendingClub.com. Opening an account is free; however, there is a 1% service charge per payment from each borrower, which reduces an investor’s net annualized return (NAR) by approximately 0.7%. This charge is automatically deducted from the proceeds that are deposited into an investor’s account.
I am pleased with LendingClub, and I intend to continue investing with them. I will keep readers up-to-date on my investments by posting regular borrower information and returns.
Disclosure: I do receive a commission if you are approved for a loan using one of my affiliate links. I do not get a commission if you apply directly to the sites. Either way, congrats on getting a great loan, and thanks for your support.
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