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Simple investing with Lending Club

499 words Read time 02:32

Lending Club is a great investment for anyone looking to store two thousand dollars for 24 months

There's a variety of reasons why I have a dear appreciation for Lending Club. Most significantly, I hold high regard for its aristocratic approach in taking a system of which banks held majority return and empowering consumers with it. The company has made a quiet stomp on banking & investing. All the while not needing to engage news organizations for primary growth and still issuing more than $4 billion of loans — $800 million last quarter alone.

If you're a consumer, here's what you can expect with Lending Club. Any funds you invest will be tied up for 36 months minimum. Although, they recently launched a "trading platform" allowing you to sell your issued Notes (Lending Club investments) if you'd like to break the contract.

The skinny

36 months of lockup minimum, 12.73% average interest achieved last quarter, Auto Investing only with a $2,500 minimum balance.

I placed $50 into Lending Club 7 months ago, I've gained over $7.38 worth of interest. That's essentially unheard of for little to no risk. Lending Club mitigates its risk by diversifying your portfolio. Simply, it means you aren't investing in one single individual and/or loan, you're investing in potentially hundreds. So even if one individual makes the mistake of not paying back their obligation, the others may make up for that lost gain. The default rate is what should be expected, which can be 12.73% this year. Though, my rates have been well into 25% in annual return.

Is it still a good investment

Yes. The Company has bigger overhead and substantial deal flow with additional rumors stirring of an IPO, making it not a completely secretive opportunity. Though, this is still as good of a time as any to get involved. Mostly because of poor marketing efforts. So unless you've been told by a friend, you've likely not heard of Lending Club even with its astonishing numbers.

Why I love the Company

You don't need to pursue the pulse of the media or obtain cliche technology startup qualifications to truly disrupt old system architecture. Value in this circumstance is created by enabling the network of which institutions traditionally owned the outcome and placing it into the hands of the consumers. That power alone substantially grew its customer base. This is truly taking a peer-to-peer approach to mostly debt consolidation loans and replacing the CD for smaller investors. The only gripe I have with the platform is how frequently you'll login to place orders on Notes that don't get fulfilled. Visit lendingclub.com

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