Trying out Lending Club
A few weeks ago I signed up for a Lending Club account. Before joining Lending Club, I researched the company and found they have been around for a few years. The company is well funded by Norwest Venture Partners and Canaan Partners.
Lending Club allows individual investors and qualified borrowers to get better rates than with conventional banks. Lending Club investors have earned an average of 9.05% in the last 20 months. The company is relatively new, so you shouldn’t invest your life savings. I opened my account with $300. A small investment, but I have help to fund nine different loans. The minimum investment in a loan is $25. The low minimum investment allows investors to diversify risk across several different loans.
I was surprised less than three percent of the loans Lending Club has created have defaulted. The investment analysis done by Javelin Strategy & Research shows the vast majority of loans are current and are paid on time. To-date Lending Club has issued 3,942 loans for a total of $33,396,200.
If you sign up HERE Lending Club will give you a $50 bonus when you sign up as an investor. If you check it out, can you let me know what you think?
I began programming in C++ when I was in college. Odd for a business major, but hey I am a Dork. After college I got a job as System Administrator. As a System Administrator I was in charge of web administration. My journey as a PHP web developer had begun. Since that time I have gained an in depth knowledge of CSS, Javascript, XML and MySQL. With changes and advances to technology I have also began learning AJAX. I started Blue Fire Development to do freelance work in my spare time.
Its pretty cool to see so many people discussing and showing their progress with Lending Club. I don’t have a ton of cash invested yet but my returns have been great. I’m still looking around the web, looking for posts showing people’s longterm returns.