Post: #1

Thanks to Entropy for the tip on lendingclub (http://lendingclub.com). I've started investing with them this week. Here's a brief outline of my experience:

Custom service is top notch. Within 24 hours of opening an account, I got a call from one of their service representatives to go over the ins and outs of the site. They're fairly candid about what types of loans tend to do well, what has underperformed in the past (Student loan repayments), expected default rates, etc.

The website is great - you can auto assemble portfolios based on the size of the initial investment and a customized risk profile, then add and subtract loans you do/don't want.

Instead of funding by linking with your bank account, you can fund via paypal and invest with a credit card. There are no fees associated with this. You can leverage this for additional returns by using a cashback card, for example the Fidelity 2% American Express cashback cards:

http://personal.fidelity.com/products/ch...card.shtml


Is anyone else using this site? I've never seen anything like it, considering the fact that you can fund your account with a cashback card. I've been using Kiva for 3-4 years now so I'm familiar with the layout, but the rates they're giving borrowers are actually significantly better than Kiva, and the loans aren't that much bigger.

Post: #2

FYI if anyone wants a referral let me know, you'll get $100 for free in your account (WTF???). I don't get anything out of it.

(03-10-2012 03:28 PM)portofmanteau Wrote:  Thanks to Entropy for the tip on lendingclub (http://lendingclub.com). I've started investing with them this week. Here's a brief outline of my experience:

Custom service is top notch. Within 24 hours of opening an account, I got a call from one of their service representatives to go over the ins and outs of the site. They're fairly candid about what types of loans tend to do well, what has underperformed in the past (Student loan repayments), expected default rates, etc.

The website is great - you can auto assemble portfolios based on the size of the initial investment and a customized risk profile, then add and subtract loans you do/don't want.

Instead of funding by linking with your bank account, you can fund via paypal and invest with a credit card. There are no fees associated with this. You can leverage this for additional returns by using a cashback card, for example the Fidelity 2% American Express cashback cards:

http://personal.fidelity.com/products/ch...card.shtml


Is anyone else using this site? I've never seen anything like it, considering the fact that you can fund your account with a cashback card. I've been using Kiva for 3-4 years now so I'm familiar with the layout, but the rates they're giving borrowers are actually significantly better than Kiva, and the loans aren't that much bigger.

Post: #3

Yea these websites allow you to "be the bank" if my credit was higher I would use these Peer to Peer lending instead of banks for all loans. Maybe in 6 months to a year....

The risk I see is minimal as you HAVE to have good credit to get a loan and most people wouldnt want the hit to their credit after spending so much time building it. The return beats a conservative stock market portfolio as well as keeping your money in the bank.

Post: #4

Yeah there was a thread with some advise that brought me to the lendingclub. I just started an account. Looking forward to the return on my investment. I tried the peer to peer a few years back but didn't have the credit for it.

Post: #5

This is the single best investment vehicle currently available. It is not the first of its kind, but it improves on the previous 'wild west' models by implementing a meaningful up front screening mechanism, complete with income verification, credit checks, etc.

I am putting a pretty substantial amount of money into this program. The returns, even adjusted for default, are far, far in excess of anything else you can get your hands on right now. This just kills money market and CD accounts (where you're lucky to get over 1.5%) and I have no faith in market-based investments at the moment.