Lending Club $100 Sign Up Bonus
Lending Club has a new bonus offer. They sent an email a couple weeks ago highlighting the new Lending Club bonus offer. The $100 is this week’s Free Money Friday offer!
How to Get Your $100 Sign Up Bonus
- Open a new Lending Club borrower account (separate from your investor account).
- Apply for a loan of at least $12,000.
- Bonus will be deposited into your account within 30 days after loan is fully funded and issued.
Lending Club Terms and Conditions
- Loans start at 7.89%.
- No pre payment penalty. You can pay off the loan at anytime without penalty.
- As a Lending Club investor you will need to create a new account, using an alternative email address, to apply for a low, fixed rate loan.
- Offer available only to borrower members who apply for a loan after Monday January 11,2010.
- Offer may not be combined with any other offer.
But don’t let the loan part scare you! With a creative twist, I think even those of us who don’t know what we would do with a loan can participate in the fun. Keep reading…
Update: A reader, Derek, caught this one for me. When they sent out the email with “no hidden fees†listed, my mind completely skipped over the service fee. Lending Club has upped the service fee to a minimum of 2.25%. Thanks Derek!
What it means: If you are in the market for a loan, the $100 is still there for the taking. For the rest of us, it’s not such a great deal. I’m going to remove the rest of the article, so that people won’t be confused.
It’s too bad. When they offered the $150 deal on a $1000 loan at Christmas time, it really was a great one!
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).
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.