How time flies. Here is my number 6 update of my Lending Club Account Performance. The last update was on May 13, 2011 about 6 months ago.
It’s amazing that it’s been over 2 years since I opened my account with Lending Club. It feels like only a year.
Since opening my account with Lending Club in August of 2009 my account has profited $7,639.23 in interest, however, about $1,000 of this is bonus paid to open the account and to add more funds. With charge-offs I’ve actually profited $6,967.62. The net annualized return is stated as 7.37%, but its actually 6%+ with the charge-offs. Regardless, this more than beats CDs, with most paying less than 1%.
I’ve invested a total $50,000. I initially opened the account with $10,000, and then added another $20,000 because Lending Club was paying a 1% bonus to add the additional funds. A few months later I added another $20,000 because Lending Club offered a 2% bonus. (Note: Lending Club is currently offering a 2% Cash Bonus on your initial investment.)
Within the last 6 months an additional $429 has been charged off. Currently, there is $1,065 late ($310 late 16-30 days, $755 late 31-125 days) and $40 in default, so some of this money will eventually be charged off as well. This loss is a part of the game of lending money directly to individuals via unsecured loans. Unfortunately, some people will default; however, the interest from paying borrowers “should” cover the losses.
Below is a screen-shot of my account as of 11/9/11.
- My Lending Club Account Performance Update 5
- My Lending Club Account Performance Update 4
- 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
If you are interested in investing in Lending Club now is a great time because they are offering a 2% Cash Bonus on your initial investments. Good luck!