Comments on: How is your Lending Club Account Doing?

By: Willy05

Willy05 — Sun, 15 Jan 2012 20:12:07 +0000

I have used Prosper and Lending Club for a few years and several thousand loans. In both cases I set up a profile for loan selection. I have nearly finished liquidating my Prosper account and the nominal 12% return became a 3% loss. Lending Club does a better job of screening the loans but defaults are still excessive IMO. They need to do a better job of due diligence before listing. Income still does not pay an adequate role in the screening process. At this point I still invest a few hundred dollars each week. My nominal 12% yield becomes 7.95% at this point after defaults. The program would work better if loans with an expected default rate of 3% or higher were declined. They also should not accept loans with income of less that $3,000 per month. If income is that low then a second income or guarantor should be required.

By: Money Hacks Carnival #66 – The Family Summer Vacation Edition

Money Hacks Carnival #66 – The Family Summer Vacation Edition — Thu, 02 Dec 2010 01:49:32 +0000

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By: M.

M. — Tue, 17 Aug 2010 23:58:07 +0000

I decided to invest some money “risky” to see what the worst case scenario would do.

For this risky portfolio, I am getting a return of 16.05% on mostly C & D loans, a few E loans & 1 F. I chose debt consolidation, no or VERY well explained delinquencies, Lending club approved and income verified, credit score 679 or higher.

For my “regular” portfolio, I am getting 13%. It’s mostly C and B, all debt consolidation, no delinquencies, <$20,000, good income, Lending club approved and income verified, and (usually) credit score 719 or higher.

For both, I read the statements & Q & A VERY carefully to see if the borrower gets the fact that people are lending their own money, and also to see how well they understand their own situation (that they still have work ahead of them).

No delinquencies in my lower risk portfolio. For my risky one, 1 was 2 weeks late once, but has been since since. Another is pretty new, and has only made 2/5 payments — i expect it will default.

Interestingly, both late loans were to people who worked in the financial market and seem to be relatively young (perhaps 30s).

By: -> Introduction To Peer-To-Peer Lending: Review And Signing Up To Use Lending Club | Bible Money Matters

Thu, 06 Aug 2009 12:02:10 +0000

[...] How Is Your Lending Club Account Doing? [...]

By: Kids and Money — June 15, 2009 - by Money Hacks

Kids and Money — June 15, 2009 - by Money Hacks — Mon, 15 Jun 2009 23:20:53 +0000

[...] presents How is your Lending Club Account Doing? posted at My Dollar [...]

By: Barrett

Barrett — Wed, 03 Jun 2009 14:34:35 +0000

I’m currently at 12.58% – no defaults yet (knock on wood), and one borrower paid off their entire loan after two months (he had said in the description that he hoped to pay it off much sooner than three years, so that was vaguely expected, just not quite so soon).

My spread is:
1. A (25%)
2. B (5%)
3. C (20%)
4. D (35%)
1. E (10%)
2. F (5%)
3. G (0%)

I value A’s as “low risk” and try to keep them at 1/4 of my loans. The rest I try to bell curve (totally ignoring G’s).

When looking to invest, I sort loans by amount left to fund. This lets me minimize the amount of time I’m in the “funding” stage (thus getting me into the interest garnering phase sooner) and also tends to show me loans other people think will pay off. I still read the reasons for the loans and if something sounds fishy or I just plain don’t like the loan for whatever reason, I don’t go for it.

By: Frugal Dad

Frugal Dad — Tue, 02 Jun 2009 17:03:49 +0000

I’ve only dabbled in social lending. To spread my risk out a bit, I balanced investments in Lending Club borrowers between a medium-risk borrower with a low-risk borrower. Both loans are being paid and are in good standing, yielding an approximate net annualized return on investment of roughly 11%. Not bad for a rookie.

By: Patrick

Patrick — Tue, 02 Jun 2009 13:29:05 +0000

My loans at Lending Club are currently earning a Net Annualized Return on Investment of 8.75%. I haven’t had any late or missed payments since I made the loans about a year ago. This is a small sample size though, as I only have a few loans (residents of my state are not currently able to fund new loans via LC).

By: Money Hacks Carnival #66 at Passive Family Income | Money Hackers Network

Money Hacks Carnival #66 at Passive Family Income | Money Hackers Network — Thu, 28 May 2009 03:15:04 +0000

[...] How is your Lending Club Account Doing? posted at My Dollar Plan. [...]

By: Rich

Rich — Wed, 27 May 2009 18:12:33 +0000

Brian, They have a collection agency try and collect once the delinquency goes to long. Also, once someone files bankruptcy the debt is discharged. Your out of luck.

By: Money Hacks Carnival #66 - The Family Summer Vacation Edition

Money Hacks Carnival #66 - The Family Summer Vacation Edition — Wed, 27 May 2009 08:46:15 +0000

[...] presents How is your Lending Club Account Doing? posted at My Dollar [...]

By: Brian

Brian — Sun, 24 May 2009 03:10:24 +0000

I just started my account at Lending Club and saw the $25 credit to my account. I’m sort of on the sidelines right now but will invest conservatively.

Can anyone tell me what exactly happens when a borrower defaults at Lending Club? What if they file Bankruptcy?

Thanks!

By: Jenny

Jenny — Fri, 22 May 2009 12:36:39 +0000

I’ve only been doing Lending Club for 3 months but so far I’m at 11.47%. I have about 20 loans or so. I’m hoping none of my higher rate loans default, but some probably will. Generally, if I invest in a D, E, or F I read the reason they need the money, and usually only go in on small sums less than $5k. I keep a pretty balance portfolio across all the percentages with enough A’s to balance out my higher risk investments.

I’m trying to get my portfolio to a point where I’m getting paid atleast $25/month so I can reinvest in other loans.

By: LooneyMooney

LooneyMooney — Thu, 21 May 2009 13:04:52 +0000

After 1.5 years and over 200 loans, I’m at 7.34%. This is because I had a few defaults (about 10 of my loans). But gosh! what a great return after defaults and fees. I’ am now investing again after they reopened and I’m never coming back to Prosper. Quality of borrowers is better, and there is no drama with Lending Club (no quiet periods, no out-of-control defaults, and only good credit borrowers, etc).

By: Debt Kid

Debt Kid — Thu, 21 May 2009 04:29:55 +0000

I’m at 9.4%!

No lates so far, and my notes are pretty old (nearly halfway through the 3 year repayment process).