Lending Club Review 1st payment

Well I have not updated this blog in a long time. But, I wanted to wait until I got my first payment. I did today. So far so good. I'm earning an average of 18.63%. That is way better then the bank would ever do.

Lending Club Review

I now have three official Lending Club loans out. The total amount that I have invested is: $600.00. It is very exciting. The money is earning interest on a daily basis. I have three loans out at: 15%, 19% interest, and 21% interest. That is at least 10x more then the bank would ever give on a CD, and about the same versus a US bond investment.

As always, i'll post the links for bonus opportunities for potential investors:


I have another great offer for potential investors. If you sign up and invest $500, you will receive a $50 bonus (10% bonus if you do the math). If you sign up and invest $2500, you will receive a $100 bonus.

Lending Club $100 bonus
Lending Club $50 bonus

Lending Club bonus

My second Lending Club loan is now offical.

I have another great offer for potential investors. If you sign up and invest $500, you will receive a $50 bonus. If you sign up and invest $2500, you will receive a $100 bonus.

Lending Club $100 bonus
Lending Club $50 bonus

“By the time a man realizes that maybe his father was right, he usually has a son who thinks he's wrong.” - Mark Twain

Lending Club default rate

Loan #1 has now earned: $1.11 in interest since 09/11/2010. Pretty nice.

Loan #2 is now 100% funded and awaiting to become the second fraction of a loan that I own. (say that 5 times fast). Very exciting. I assume it will become official this Monday.

By the way, follow me on twitter, and digg me on digg.com.

I am going to re post this fact:



Another question I know people are asking is: "What is the default rate on Lending Club Loans?"


Answer:

The overall annualized default rate since our inception in 2007 has been below 3%. Our stated returns to investors is measured after taking into account that default rate. Our default rate remains low because we are very diligent in both our selection criteria and our collection activities. Since inception, we have been approving less than 1 in 10 loan requests submitted to Lending Club. You can monitor the defaults and delinquencies of loans funded through Lending Club by reading our SEC filings at www.sec.gov and on our Statistics page.

Lending Club default rate statement

If you sign up under my referral link and have an initial investment of $500 or more, you and I will each earn $50. If you invest exactly $500, the $50 you receive is a 10% bonus if you do the math. Not bad. Do your own due diligence when investing, I am not responsible for your investments, nor am I employed or paid for advertisement in any manner by Lending Club.

Learn more here.

So far no real updates. Loan #1 has earned $1.09 interest since 9/11.

Loan # 2 is 90% funded at $18,000. This loan is very exciting. By next week I will own a fraction of two loans. That is a pretty cool feeling at 20 years old. But now comes the waiting game. But investments take time.

It's very interesting to see how you can make your money work if you just learn about the options available to you. So far P2P lending has been great. It would have taken me nearly 6 months to earn $1.09 in interest in my "interest work perks checking account."


Another question I know people are asking is: "What is the default rate on Lending Club Loans?"


Answer:

The overall annualized default rate since our inception in 2007 has been below 3%. Our stated returns to investors is measured after taking into account that default rate. Our default rate remains low because we are very diligent in both our selection criteria and our collection activities. Since inception, we have been approving less than 1 in 10 loan requests submitted to Lending Club. You can monitor the defaults and delinquencies of loans funded through Lending Club by reading our SEC filings at www.sec.gov and on our Statistics page.

Lending Club default rate statement

If you sign up under my referral link and have an initial investment of $500 or more, you and I will each earn $50. If you invest exactly $500, the $50 you receive is a 10% bonus if you do the math. Not bad. Do your own due diligence when investing, I am not responsible for your investments, nor am I employed or paid for advertisement in any manner by Lending Club.

Learn more here.

Loan #1 has so far earned $1.09 in interest since 09/11/2010. I receive my first payment on October 11th.

Loan #2 is now 80.00% funded at $16,000. I predict that by Sunday night it will be completed in funding and be the second, of hopefully many loans that I own a percentage of in the near to distant future.


I have noticed through my blog statistics that more and more people are reading my blog either through in person referrals or my twitter account.

"Instead of your children or friends having to teach you about P2P lending in 5 years when this industry explodes, be the one who teaches them."

As always i'll post my referral link:

If you sign up under my referral link and have an initial investment of $500 or more, you and I will each earn $50. If you invest exactly $500, the $50 you receive is a 10% bonus if you do the math. Not bad. Do your own due diligence when investing, I am not responsible for your investments, nor am I employed or paid for advertisement in any manner by Lending Club.

Learn more here.

Loan # 1 has so far earned $0.79. It would have taken nearly 1 year to earn that in a interest checking account.

Loan # 2 is now 68.62% funded at $13,725. If it keeps up with this funding, it should be completed by the end of this week and become legal hopefully by next week. That's great, as both loans would end around the same time in 36 months.



So far I have zero complaints, and am excited for the future. I will reinvest all payments each month into separate loans.

I thought this is such an interesting statistic that I would repost it.

Cliff notes:

• "Over the past three years, Lending Club’s average annual return has outperformed the S&P 500 and the Nasdaq as well as other benchmarks such as Morningstar’s Corporate Bond Fund, Schwab’s 2040 Retirement Fund and Fidelity’s Magellan Fund.** (see their web page for the ** details)

• "91.69% of Lending Club investors with 800+ Notes earn returns between 6% and 18%. 800 Notes can be purchased with a minimum investment of $20,000."
  

• "62.14% of Lending Club borrowers report using their loans to consolidate debt or pay off their credit cards*."

• "Lending Club has issued $155,477,825 in loans to date (09/11/2010).
  
• According to Lending Club, not I,: "their average Net Annualized Return is 9.66%."

"Learn about Lending Club, and furthermore, P2P trading, before your children are telling you in 20 years how much they are making."

If you sign up under my referral link and have an initial investment of $500 or more, you and I will each earn $50. If you invest exactly $500, the $50 you receive is a 10% bonus if you do the math. Not bad. Do your own due diligence when investing, I am not responsible for your investments, nor am I employed or paid for advertisement in any manner by Lending Club.

Learn more here.

Again there is no update for Loan #1, it is officially a legal binding note, and has already begun earning interest. In fact, it has already earned: $0.48 in interest, since the 13th of September when it became an official loan. It would have taken one entire quarter (4 months) to earn that in my checking account. The $0.48 equates to: $13.05 in payments each month, and an official earnings due to interest of: $94.85. Not bad.

Loan # 2 that I have invested in, is now 52.25% funded at $10,000. I invested $175.00 in this loan at 19.21% interest. I do not know if it is because I have highlighted Lending Club in this blog and on my twitter, but this loan is increasing in funding by nearly $1,000 everyday. People have done their due diligence and seem to agree with what I have stated. This couple is NOT going to default.


So far I have zero complaints.



If you sign up under my referral link and have an initial investment of $500 or more, you and I will each earn $50. If you invest exactly $500, the $50 you receive is a 10% bonus if you do the math. Not bad. Do your own due diligence when investing, I am not responsible for your investments, nor am I employed or paid for advertisement in any manner by Lending Club.

Learn more here.

Today there is no update for "Loan #1", which by the way, is now a legal binding note. I shall receive my first payment on 10/11/2010 as I stated in the previous post. I am very excited.

BUT, "Loan #2", has again increased by another 10% in funding, which equates to an additional $1,000 in funding. At this rate it will need another 6 days to become fully funded. This is great. More and more people are definitely agreeing with me. My blog is also getting a lot of unique traffic hits. I think in this recession more and more people are needing loans, or wanting to make money off the money they have saved. It's very interesting. There doesn't seem to be an in between with the two. Very unique times in America. So I say if you have money to spare, give your fellow citizen's a helping hand, while still earning a very handsome return rate due to the interest. Right now I am earning: 15.21%, and 19.21%. That is much better then the bank offers on a basic CD savings account. If you need money, Lending Club will most likely give you a better loan based on your credit, then the bank would. Either way it works out to your advantage.

I also added my twitter account to the side profile. Follow me!!



If you sign up under my referral link and have an initial investment of $500 or more, you and I will each earn $50. If you invest exactly $500, the $50 you receive is a 10% bonus if you do the math. Not bad. Do your own due diligence when investing, I am not responsible for your investments, nor am I employed or paid for advertisement in any manner by Lending Club.

Learn more here.

Today I bring some good news. One of the notes I have purchased, is now a legal binding loan. I am very excited. It has officially completed the necessary steps to become a legal loan. My first payment will be received on 10/11/2010, for a total of: $13.03. That means I will earn $13.03 for the next 36 months and earn a profit of: $104.37 after 3 years. That interest/return is much higher then had I invested $375.00 in a regular CD. On the plus side, I am also helping a fellow American consolidate their debt at a much better interest rate then a bank would have offered. I feel very good actually, and am excited for my first payment on 10/11.

(Click to enlarge)

The second note I have purchased, which is still in funding, is now 34.38% funded. The other day it was just over 20% funded, so it has increased in just two days by 14%. People must be realizing this is a great loan to partake in. The borrower is an honest couple. One is a former US Marine. I invested/purchased $175.00 worth of their loan at a rate of 19.21%. So I should be earning a handsome return on that particular investment. Go to my previous post if you want to see "Loan #2" in a more detailed manner.

As always, i'll leave a shameless plug with my referral link:
(say what you want, but we will both benefit with cash if someone signs up under the URL I list)

If you sign up under my referral link and have an initial investment of $500 or more, you and I will each earn $50. If you invest exactly $500, the $50 you receive is a 10% bonus if you do the math. Not bad. Do your own due diligence when investing, I am not responsible for your investments, nor am I employed or paid for advertisement in any manner by Lending Club.

Learn more here.

In case anyone is interested in seeing a more detailed description of why I purchased these two particular notes, I will now list the details that made me choose them out of several other ones.



Loan #1:

(Click to enlarge)

As you can see, 366 people purchased portions of this loan. This is how Lending Club works. Multiple "lenders" contribute their money to the "borrowers" loan if they feel it is worthy. The money is then compiled into a lump sum and given to the borrower, who then is obligated to repay the loan at a set monthly rate for 36 or 60 months. In this case, it was 36 months. I contributed $375.00 to their $25,000 loan, and in return, I will receive 15.21% interest for my contribution. It works just as a bank's loan would/does work. Each month the borrower has to repay their loan, just as they would any other bill. Except we have taken the bankers out of the picture, and replaced them with P2P lenders. This particular borrower completed all the necessary tasks in my opinion to be worthy of a loan and/or my money. The borrower: verified their income, verified their credit by allowing a credit check to be run with their valid SSN #, and has answered multiple questions from potential lenders. I have no doubt in my mind they will be repaying their loan on time each month.

As of today (09/11/2010): $1,510,389,567 in loans have been rejected. Which means that Lending Club lenders are refusing to give money to be people who they believe will default. That is a lot of money.


Loan #2:

(Click to enlarge)

As you can see this loan is still being funded. As of right now it is 29.62% funded. I purchased $175.00 worth of the borrowers 36 month, $20,000 loan, at an interest rate of 19.04%. The same reason I bought a portion of this loan, is the same reason why I bought a portion of the other. As you can see, both loans that I have purchased a portion of, are for "debt consolidation." Which means the borrower will take the money they gain from lenders such as myself, and pay the remainder of their debt off. Why would they take out another loan? Because this loan will have a smaller interest rate then their others. P2P lending is known for giving smaller interest rates then banks and/or corporations. This is another reason I could see this industry exploding within the next few years. If you could potentially make money as a lender, or save money as a borrower, why wouldn't you? Contributing to this loan is just like contributing to a "CD", except you get a much higher rate of return then you would with a CD.




If you sign up under my referral link and have an initial investment of $500 or more, you and I will each earn $50. If you invest exactly $500, the $50 you receive is a 10% bonus if you do the math. Not bad. Do your own due diligence when investing, I am not responsible for your investments, nor am I employed or paid for advertisement in any manner by Lending Club.

Learn more here.

Okay, as stated below, I said I was going to invest $550, well, I just did. Let's see how this goes for me. I am pretty excited, because if this goes well, the future is golden.

In case anyone doubts me, this is proof of my first loan on Lending Club:

(Click to enlarge)

I invested in two separate loans, or one can define it as two separate people. Each person had their monthly incomes verified. Each loan is for a duration of 36 months. The first loan is at an interest rate of: 15.21%. The second loan is at an interest rate of: 19.04%. I invested $375.00 in the 15.21% loan, and $175.00 in the 19.04% loan. I should make a total profit of $90.36 due to the interest. My goal is to give out $200-500 each month in loans until September 2011.

I have read that a lot of people build a large portfolio of $25 loans, and end up giving out nearly 100 loans. I would prefer to give out a few loans, but at larger dollar amounts. To me it just makes more sense to do that. After looking at each person's loan, and doing the math, I determined that neither person will default in payment. In fact each person is looking to consolidate their debt. That means they decided to take out a Lending Club P2P loan to pay off their current debt. Why would they take out an additional loan? To pay off their current loans that have higher interest rates. I can see this industry exploding in the next few years.

I also plan on taking all of my monthly payments, and reinvesting them into new separate loans. Every dollar I invest in P2P lending I am going to pretend never existed. The minimum I am going to invest in future loans will be: $200. I just do not think investing the minimum of $25 is worth it. I am going to do my own due diligence and pick the best candidates who will not default. I am also not investing in any loans below 12% interest. 12% or > is all I am interested in. So basically to sum it up: I will reinvest every single dollar I earn each month, I will only invest in loans of 12% or >, and I will also try to fund an additional $200-500 a month. Stay tuned.

If you sign up under my referral link and have an initial investment of $500 or more, you and I will each earn $50. If you invest exactly $500, the $50 you receive is a 10% bonus if you do the math. Not bad. Do your own due diligence when investing, I am not responsible for your investments, nor am I employed or paid for advertisement in any manner by Lending Club.

Learn more here.

As stated in the "about me" section, I am a 20 year old student looking to earn some type of return on my part time pay checks (the 1% interest I earn from the bank is not doing it for me).I am not rich; in fact, I am just trying to make my way into the world. I am creating this blog to high light my journey into the p2p lending world.

I was first told about p2p lending from my Economics teacher on Thursday. It struck a nerve, as I am getting sick of seeing my money earning completely nothing in the bank. I also would like to help people get out of debt. If you have bad credit, you could potentially save yourself a few % points by using p2p lending versus the bank.

Here is a detailed explanation of Lending Club's statistics: Lending Club statistics

Cliff notes:

• "Over the past three years, Lending Club’s average annual return has outperformed the S&P 500 and the Nasdaq as well as other benchmarks such as Morningstar’s Corporate Bond Fund, Schwab’s 2040 Retirement Fund and Fidelity’s Magellan Fund.** (see their web page for the ** details)

• "91.69% of Lending Club investors with 800+ Notes earn returns between 6% and 18%. 800 Notes can be purchased with a minimum investment of $20,000."
  

• "62.14% of Lending Club borrowers report using their loans to consolidate debt or pay off their credit cards*."

• "Lending Club has issued $155,477,825 in loans to date (09/11/2010).
  
• According to Lending Club, not I,: "their average Net Annualized Return is 9.66%."

How can one pass that up? I know I can't. My initial investment will be: $550.

If you sign up under my referral link and have an initial investment of $500 or more, you and I will each earn $50. If you invest exactly $500, the $50 you receive is a 10% bonus if you do the math. Not bad. Do your own due diligence when investing, I am not responsible for your investments, nor am I employed or paid for advertisement in any manner by Lending Club.

Learn more here.