Comments on: Lending Club $100 Sign Up Bonus http://www.mydollarplan.com/lending-club-100-sign-up-bonus/ because money doesn't grow on trees Thu, 09 Feb 2012 14:28:55 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Madison http://www.mydollarplan.com/lending-club-100-sign-up-bonus/#comment-10377 Madison Fri, 12 Feb 2010 19:14:29 +0000 http://www.mydollarplan.com/?p=1112#comment-10377 You're right Derek. When they sent out the email with "no hidden fees" listed, my mind completely skipped over the service fee. The service fee not only kills the deal, they upped the fee to a minimum of 2.25%. It's too bad. When they offered the $150 deal on a $1000 loan at Christmas time, it really was a great one! I'll update the post. Thanks for the catch. However, I do want to hear more about your social lending arbitrage! I'm already thinking we can have some fun with that one. You’re right Derek. When they sent out the email with “no hidden fees” listed, my mind completely skipped over the service fee.

The service fee not only kills the deal, they upped the fee to a minimum of 2.25%.

It’s too bad. When they offered the $150 deal on a $1000 loan at Christmas time, it really was a great one!

I’ll update the post. Thanks for the catch.

However, I do want to hear more about your social lending arbitrage! I’m already thinking we can have some fun with that one.

]]> By: Derek http://www.mydollarplan.com/lending-club-100-sign-up-bonus/#comment-10374 Derek Fri, 12 Feb 2010 15:58:19 +0000 http://www.mydollarplan.com/?p=1112#comment-10374 I think your math is a little screwy on the "free" $20. If you take out a loan of 12,000 and have absolutely stellar credit, LendingClub.com will only charge you a 1.25% service fee -- aka $150, which will be deducted from the cash you are borrowing. That, in addition to the interest payment of $80 (assuming your number is calc'd correctly) will mean that you pay $230 for $100 back. In other words, you wouldn't gain $20, you'd lose $130. That being said, if the borrower has little to no cash flow problems, stellar credit and doesn't mind taking on the risk, lending club is a great arbitrage site where you take borrowed money and earn interest off more risky borrowers. I've done that with prosper and with lending club, with great success so far (11 months in). I think your math is a little screwy on the “free” $20. If you take out a loan of 12,000 and have absolutely stellar credit, LendingClub.com will only charge you a 1.25% service fee — aka $150, which will be deducted from the cash you are borrowing. That, in addition to the interest payment of $80 (assuming your number is calc’d correctly) will mean that you pay $230 for $100 back. In other words, you wouldn’t gain $20, you’d lose $130.

That being said, if the borrower has little to no cash flow problems, stellar credit and doesn’t mind taking on the risk, lending club is a great arbitrage site where you take borrowed money and earn interest off more risky borrowers. I’ve done that with prosper and with lending club, with great success so far (11 months in).

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