Any have experience with Lending Club?

I'm looking to consolidate an auto loan, and some low balance credit cards. Went to the bank and the interest rate was astronomical for someone with spotless credit.

Discover, someone I have a CC through, offers a personal loan program at 7.5%, stumbled into Lending Club who offers rates in the 6.25 range for 3 years.

Anyone have experience with LC? Fill me in, the google results seem positive, but you never know how much of that is corp. reviews being put in.

 

I'm a lender there. Nothing but positive for me.

 

Just posting a follow up for any future searches:

Great experience; was approved for lowest APR and was 100% funded within 12 hours.

Right now, waiting for the bank acct verification deposit before I can receive the funds.

Should have everything paid back within 18 months and will save overall interest and lower monthly payments.

 

Good for you. I'm a lender on there as well and love people who pay their loans. :up:

 

What is lending club? What kind of returns do you see?

 

Do you live IN DC? If so, you can't. Neither can Ohioans.

 

I'm a lender there too. Good experiences so far.

 

This is a very interesting idea. So basically you invest some money that is loaned out and you are provided with a return? I'm gonna have to do some more research

 

You can choose what 'risk level' you're comfortable with. The lower credit scores get charged a higher rate, and you can choose what level you want. So far, I'm impressed. You can either peruse the applicants and choose who you 'fund' and how much of that applicant's request you fund, or lending club will do it for you. As an investor, they disclose the rate of return for each category, and that rate is after factoring in any defaults. Good return on my (albeit small) investment so far. Beating the hell out of my returns from the stock market lately.

 

Id never heard of this before, checked out their website tab "how it works"
Low and behold, woman on the left of the page (pink sweater) is my brothers ex girlfriend Mozelle. She's their marketing manager.
I'm gonna invest.

 

the cartoon one? your brother into that japanese cartoon porn?


j/k

 

He'd get up on a cracked plate, he's into errythang

Mozelle on the right.

 

Investors. ...is this a pretty safe bet if you're smart about it?

What are the taxes like at the end of the year?

Seriously thinking of trying 10-20k and seeing what happens.

 

Its not FDIC insured or guaranteed. If the company goes belly up, you're out your dough.

They generate a tax form for you each year.

I've been in Lending Club and Prosper for around 5-6 years. I average around 10-11% a year in returns.

 

So lets say I decide to lend $5,000 to someone, they pay some back then decide to file bankruptcy, or just plain default on the loan. Does lending club go after them, or do I basically have to write it off as a loss? This is my biggest concern.

 

They write it off. Something like 5% of the loans are write-offs. Its all factored into your returns.

 

Been doing some research on it too... You don't really lend 5k to someone, you lend $25 to 200 people to mitigate the risk.

 

Not necessarily - my loan was 100% funded by one person. You get to choose how you want to invest. A group in a certain credit range or you can seek out individual applicants.

 

Well yeah of course, there is always that option... Most however diversify quite a bit.

 

Plus, If I remember right, they reject 90% of the loan applications they receive, so they're not exactly playing fast and loose with other peoples' money.