I logged into my Lending Club  account this week to see how my loans are doing. So far my net annualized return on investment is 8.44%!
My Lending Club Account
My loans are all current, which is much better than the loan I had at Prosper , which was charged-off last week because the person filed bankruptcy.
Although, in all fairness, that loan was at 15.5% because the it was a credit grade D. I was pretty greedy when I first started out in peer to peer lending.
I learned my lesson, and at Lending Club  I’ve carefully selected loans with a grade A. The interest rate is lower (7.68% – 9.63%) but there’s a much greater probability that they will pay! And so far they all have!
Open a Lending Club Account
If you’re interested in opening a Lending Club account, here is a Lending Club Step-By-Step Guide  to get you started. Minimum investments, interest rates, and requirements are detailed in my Lending Club Review .
Net Annualized Return on Investment
Lending Club uses the net annualized return method to show the performance only on the money you have received payments on to date, accounting for the service charge and defaulted loans. It doesn’t compare neatly to stock market returns, but it does give you a good indicator of the return you are getting on your money.
Here’s the formula for the math junkies out there:
Your Lending Club Account
How is your Lending Club  account doing? Log in and check your net annualized return on investment (which should show on the first page when you log in). I’d love to hear how readers are doing!
- What is your net annualized return on investment?
- Are all your loans current?
- What investment grade loans did you select?
- Did you select the loans yourself or use the portfolio builder?