Has anyone heard of The Lending Cluband what is peer to peer lending? I had not heard too much about them before, but apparently, The Lending Club is starting to make a name for it self. Peer to peer lending is not a complex new banking term either. This type of lending is as old as the banking system itself. One friend lending another friend money.
This site aims at bringing together both borrowers and lenders under the same site. People join The Lending Clubeither with the intentions of borrowing money or making money. The Lending Club lets anyone invest money on individual loans and receive a better than average return. The Lending Club
will only qualify borrowers with better than average credit. The typical borrower is someone who is looking to refinance a credit card or make a small business loan. They offer fixed interest rates and loans for up to 3 years only. Borrowers are thoroughly screened prior to receiving any loan requests. The average loan size, according to Lending Club is around $5000. The minimum loan amount is $1000 and the maximum amount that you can borrow is $25,000. The Lending Club is supposedly known for its tough standards and turning away less than good borrowers.
I just signed up and I am going to check it out. It took me several tries to get through their encrypted verification code. It is a lot like social websites in that you have to fill out a profile. It’s also free to join. I have set myself up to become an investor, but they are telling me that my state of Texas does not qualify yet. They allow you to fund your account through pay-pal, credit/debit cards or directly to your bank account. Anyway, they claim to return an average of 9% over an 18-month investment. You can pick and choose who you want to loan to as well. Go to the invest section and browse through all the available notes that they have. You can decide whom you want to lend to. There are people wanting to borrow for their businesses, weddings, pay off credit cards, real estate, etc. Each loan is categorized according to credit worthiness. The better the borrowers credit the less return on your investment. Lesser creditworthy individuals will pay a higher interest return. A typical loan of $15,000 is funded by a multitude of lenders. The profile I looked at was asking for money to pay off high interest credit cards. They have been funded by 58 lenders and are just lacking about $4000 to complete their loan. All this has taken place in 3 days.
The Lending Club
takes care of collecting all the payments from each borrower and is in charge of paying back the lenders. The user interface is much like My Space or Facebook. It allows you to search for borrowers according to their credit ratings, debt to income ratio or even the number of delinquencies they have had. They also give you daily statistics like how many loans have been made that day and for how much. The Lending Club also shows you on its interface the borrowers credit score, employer, gross income, debt to income ratio, how many open credit accounts they have and even what city and state the borrower lives in.
I am definitely going to give investing in The Lending Club a try. It sounds look fun to play banker for a day (or a few minutes). The Lending club allows anyone who wants to make a little but of money an opportunity to do so. It does not even take that much money to start. I think I am going to start off with something small like a $100 or so. I would not recommend anyone to put all his or her money in one place either. However, if you have some money to play with, why not try with $10,000 or so. In a year you could a earn a pretty decent return on $10,000.
This site aims at bringing together both borrowers and lenders under the same site. People join The Lending Clubeither with the intentions of borrowing money or making money. The Lending Club lets anyone invest money on individual loans and receive a better than average return. The Lending Club
will only qualify borrowers with better than average credit. The typical borrower is someone who is looking to refinance a credit card or make a small business loan. They offer fixed interest rates and loans for up to 3 years only. Borrowers are thoroughly screened prior to receiving any loan requests. The average loan size, according to Lending Club is around $5000. The minimum loan amount is $1000 and the maximum amount that you can borrow is $25,000. The Lending Club is supposedly known for its tough standards and turning away less than good borrowers.
I just signed up and I am going to check it out. It took me several tries to get through their encrypted verification code. It is a lot like social websites in that you have to fill out a profile. It’s also free to join. I have set myself up to become an investor, but they are telling me that my state of Texas does not qualify yet. They allow you to fund your account through pay-pal, credit/debit cards or directly to your bank account. Anyway, they claim to return an average of 9% over an 18-month investment. You can pick and choose who you want to loan to as well. Go to the invest section and browse through all the available notes that they have. You can decide whom you want to lend to. There are people wanting to borrow for their businesses, weddings, pay off credit cards, real estate, etc. Each loan is categorized according to credit worthiness. The better the borrowers credit the less return on your investment. Lesser creditworthy individuals will pay a higher interest return. A typical loan of $15,000 is funded by a multitude of lenders. The profile I looked at was asking for money to pay off high interest credit cards. They have been funded by 58 lenders and are just lacking about $4000 to complete their loan. All this has taken place in 3 days.
The Lending Club
takes care of collecting all the payments from each borrower and is in charge of paying back the lenders. The user interface is much like My Space or Facebook. It allows you to search for borrowers according to their credit ratings, debt to income ratio or even the number of delinquencies they have had. They also give you daily statistics like how many loans have been made that day and for how much. The Lending Club also shows you on its interface the borrowers credit score, employer, gross income, debt to income ratio, how many open credit accounts they have and even what city and state the borrower lives in.
I am definitely going to give investing in The Lending Club a try. It sounds look fun to play banker for a day (or a few minutes). The Lending club allows anyone who wants to make a little but of money an opportunity to do so. It does not even take that much money to start. I think I am going to start off with something small like a $100 or so. I would not recommend anyone to put all his or her money in one place either. However, if you have some money to play with, why not try with $10,000 or so. In a year you could a earn a pretty decent return on $10,000.
Labels: invest money, p2p lending, peer to peer lending, The Lending Club
Credit Card / Financial news blog post by Todd Holliday at 6:24 PM 