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:

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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:

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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.

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