Lending Club?
I was looking at financing options, and I found the the "lending club" after a quick google. It sounds like a peer to peer loan service? Has anyone used it, either to lend money or borrow money? How does it work? Results?
I'd be curious to know this too. I've seen similar things happen. My guess would be it is based on what people are funding. For example, when I buy notes on Lending Club, I have specific criteria that I look for based on state, type of loan, interest, etc. I look at the historic data to determine which loans seem to be the best overall to perform. I can look at the data and go, this state doesn't pay people back and filter it out (sorry California). I use their trading platform only so I'm not 100% familiar with the origination but I would imagine it is similar.
Does anyone know if when taking a loan out with Lending Club or Prosper if it goes against your debt to income ratio? Is it reported to the credit companies?
Thanks all
Just checked my return after setting "auto pilot" (Prime program) and my return (assuming all past due's default) has been 6.77% for past year. I invest mostly in safer stable loans so my return is lower but ... more safe and stable! Been here now since 2008 and lowest annual return has been around 6.2%
I'm in the process of considering hard money/private lending and stumbled on to the thread. I forgot about LC and lgad its a option. Over the past 4 years, I've gathered 280 notes at roughly 6.8% APR. No real strategy used just went blind. Not bad. With a good number of notes, Ive never heard of a investor losing money there. I'm currently cashing out of my Lending Club investments due to the need to finance a property. This hasnt been as easy as some notes will sell for a loss. I'm currently at 5% factoring in the loss of selling the notes. I hear LC will raise their rates to attract investors. So i'll continue to stick with it...
Originally posted by @Mike Barry:
Does anyone know if when taking a loan out with Lending Club or Prosper if it goes against your debt to income ratio? Is it reported to the credit companies?
Thanks all
Yes, it is reported. I have a loan with Prosper and it gets reported every month. At the beginning they were slow in doing so, but did it after all.
Hi,
I tried joining lending club through the BP link Brandon gave and when I put my email address it keeps giving error that my email address is not valid. Is anyone else experiencing the same issue?
Actually it does not matter which link I use, it keeps giving invalid email address and yet the email is valid. Has anyone tried to join to invest recently?
Originally posted by @Brandon Turner:
Just to throw this out there- if anyone does use Lending Club - BiggerPockets has an affiliate relationship with them, so it helps BiggerPockets to go through our link but doesn't cost you any more.
Here's that link: Lending Club
Thanks everyone!
The link only allows you to have an Investment or retirement account. What about if you need to a loan?
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Hey @Matt T. it's best to ask this question to the club for their options.
This is an old thread, but I am curious (if anyone still reads this) what is your experience so far with trying to get the money out, especially giving Coronavirus situation. I've been trying to get out slowly, but steadily within last few months. Currently, I am at 7%, but afraid I'll see a lot of defaults and charge offs soon. How long does it take to move 5-6k back?
@Natalia Sturza
I would assume this would be a slow process, depending which loans you aquired, whether they were 3 year loans or 5 year loans. I would imagine it would take as long with most of them, considering some people are making the minimum payment.
I am in the same boat, as I have about 6/7K invested in Lending Club currently, and I started to draw out little by little when COVID first hit too, because I was worried that many loans would go into default as well. However, I then stopped taking it out after a few months, as I saw my interest rate was not affected at all (depending how accurate that really is anyways...?). However, since then I noticed that Lending Club is now ending its platform and transitioning to a high interest saving account. I wonder how that will work and how long it will take to transition, as I am not sure whether or not to withdraw my slowly accumulated cash. What are you doing now with it?
That was what I was trying to research, and that is when I came across this thread, but then realized it was extremly old!
@Amy Oltendorf yep, I saw the news that they discontinue the Notes and merging with Radius Bank. I googled the Bank and their current hight yield saving accounts are laughable 0.15-0.25 APR. I think if your notes are paid off and you don't transfer the funds back to your bank, that's the approx % of the return that your money will have. I guess I am stuck for ~5 years waiting to get my $ back, luckily it's not a huge amount. Once I have it back, it will go towards syndications I am currently participating in.