Lending Club Peer to Peer Lending Review

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Lending Club Peer to Peer Lending Review

Posted by MoneyNing 1051 days ago, popular 1050 days ago (http://moneyning.com)
Category: Funds and ETFs | Tags: borrowing investing lending

Lending Club appears to be a great way to invest. Does anyone have any experience with it?

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sunnyspeaks 1050 days ago

I think the same way. I'd like to know if someone has good experience with this or is it complex like any other system.

RavenLebeau 1050 days ago

I'd be far too afraid of defaults... the only reason that bank lending supposedly "works" is that banks can afford teams of lawyers and plenty of staff to go after defaulters. I also have to wonder about anyone seeking a peer loan... why can't they just get a credit card or home equity loan like everyone else? Probably because they have terrible credit. All investments have risks, but peer to peer lending gives me the heebie jeebies. It's interesting to read about, but I'm not ready to try it.

racer007 959 days ago

Lendingclub is another way diversifying your money in my opinion. I invest money in lending club, a Roth IRA and I have a savings account. Some people will say it is good and some say it is bad. In my opinion you have a idea of who you are lending your money to. If you keep your money in a bank account the bank will lend your money to complete strangers anyway. They have standerds for borrowers so they will not allow just anybody to get loans there. I believe 1 out of 9 borrowers are rejected in lending club. You can get a good rate of return but remember it is also about risk tolerance. If you cant afford to lose the money then don't do it. Default rates are rising in Peer to Peer lending but remember the economy is going south. Not all borrowers are evil with money problems. Many people I see just want to refinance the credit cards so they can get lower interest rates.

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