This video shows you all of my LendingClub accounts and what I did wrong and how I plan to fix it with my new LendingClub account.
Get started with LendingClub here:
Do you really want to loan money to family or friends and risk having them not pay you back? 😲
What if you could loan your money to a stranger instead (and make interest)? 🤔🤷
➡️ That is what peer-to-peer lending is all about.
One of the largest peer-to-peer platforms is LendingClub. In this video I will show you how you can use this platform as an additional investing tool.
Lending Club is an online peer-to-peer (P2P) lending platform that takes the banker out of banking.
Investors lend money directly to borrowers through the website, enabling both to benefit from the rate of interest established for each loan.
And just as important, the entire transaction happens online, eliminating the need for sometimes embarrassing face-to-face meetings common with bank loans. 😳
It’s a win-win as both the investor and the borrower benefit from the LendingClub process.
➡️ There are two ways to invest with LendingClub.
Manual investing is where you browse available loans and choose which ones you’ll invest in one at a time.
💻 But you can also use automated investing in which you set investment criteria, and notes are selected automatically based on that criteria.
⁉️ Like any investment there are some risks.
It’s important to realize investments held through LendingClub are not bank assets, and as such they are not insured by the FDIC.
Individual loans can go into default, and if they do, you will lose that portion of your investment.
In addition, a missed payment by a borrower means you will not get the payment on that loan in that particular month.
LendingClub does use “best practices” to collect payments from delinquent borrowers, but some will default nonetheless.
You can also hold LendingClub investments as part of an individual retirement account (IRA).
You can do this through a LendingClub self-directed IRA. LendingClub will pay the annual IRA fee if you open the account with a minimum of $5,000 and keep that balance level for a minimum of 12 months.
Read more about LendingClub on my blog here:
Learn more about peer to peer lending here:
➡️ Get started with LendingClub here:
Disclosure: I receive compensation from LendingClub for anyone that signs up through my affiliate links.
The results shown here are specific to my personal accounts and may not be representative of the experience of other LendingClub investors and are not a guarantee or indication of anyone else’s performance or results.