Once again, it’s time for another update of my Lending Club Account Performance. The last update was on May 13, 2010, about 3.5 months ago.
Since starting to issue loans in August 2009, I’ve earned a total of $2,557.36 in interest; however, with signup bonuses I’ve earned $3,183.02.
Unfortunately, I have 1 note currently late 16-30 days and 7 notes late 31 to 120 days. One has currently defaulted (meaning in collections) and 2 have been charged off. To combat future late payments and defaults, I’ve reinvested monies with A investors. This should lower future risk, however, my rate of return will be lower.
So since the last update I’ve lost $93 (charged off) and with the current defaults and late payments there is a strong potential to lose another $410.
Taking the potential loss into account I’ve earned $3,183.02 – $410 = $2,773.02. So my one year rate of return is $2,773.02 / $30,000.00 = $9.2%. Without signup bonuses my rate of return is $2,557.36 – $410 = $2,147.36 / $30,000.00 = 7.1%.
Of course my rate of return maybe higher is the late payments are paid and/or if the default loan money is recovered.
Regardless, I am happy with my returns. Beats the banks any day and this is pretty much what the banks do anyway. Banks give loans knowing that some people will default and will be late paying. However, the goal is to cover the losses with the profits.
Several months ago I started a forum at Social-Lending-Forums.com to discuss social lending primarily for Lending Club and Prosper, the 2 largest social lending networks. The forum offers a Free Comparison Report comparing Lending Club and Prosper. Please don’t hesitate to visit and sign-up if you are interested in social lending.
Finally, Lending Club is giving investors $25 when they sign-up at no risk. You can use the $25 to try out their service with no future obligation. There is nothing for you to deposit and you can lend the $25 immediately. Try it out, you have nothing to lose!
- My Lending Club Account Performance Update 3
- My Lending Club Account Performance Update 2
- My Lending Club Account Performance, So Far, So Good (Update 1)
- Earn a High Interest Rate with Lending Club P2P Loans
- Need a Loan? Get a Low Interest Loan from Lending Club
- Social Lending Networks are Booming
- Lending Club Offering $25 to New Customers in September and a Change to win $2,500