Lending Club (Make money lending money!)

[iarenick]

I just finished signing up at Lending Club and currently getting my bank account processed. Basically, you lend money to other people and you earn an interest off of that. Pretty interesting and looks promising considering the criteria to borrow money is pretty strict and that you get a full page about their bio before you invest, including the number of times they have been delinquent and their credit score range. Most of the people on the site are people looking for down payments on a house or the like.

Also, they have a referral program that you and your referral earn $25 when they sign up. Check out this page for more info:
"When You Refer Lenders: We'll Pay Your Friends $25 when they become lender members."
https://www.lendingclub.com/invite/invite.action

I know a lot of people look down on referrals, but if your interested in making a quick $25 and helping a fellow IA member out, click my link
https://www.lendingclub.com//invite/...errer=iarenick

Harvard Business Review - "Top 20 Breakthrough Ideas 2009"

and

Featured on The Wall Street Journal, CNet, The Motley Fool, ABC News, FOX, and more.

This is pretty much like an investment since it pays a better interest rate than those tiny 0.xx% savings accounts that banks offer. Lenders make an average of 9.94% (As of 6/18/2009).

Here is an example of a loan request that I just found:


And the Loan browser:


*The loan amount requested can be split between multiple people, so you only make interest off of the amount you invested.

[SampaGuy]

That's pretty cool, I'm going to look into it some more.

[iarenick]

Yeah, the concept is really smart by cutting out the middle man. Also, if you have great credit, you can get loans through this site.

[SampaGuy]

In addition, individual lenders who are residents of states other than California must (a) have an annual gross income of at least $70,000 and a net worth (exclusive of home, home furnishings and automobile) of at least $70,000; or (b) have a net worth (determined with the same exclusions) of at least $250,000.

[AirMax95]

Very similar to Prosper.com

Good deal, but if you screw up here, good luck EVER getting a loan from an institution.

[SampaGuy]

Very similar to Prosper.com

Good deal, but if you screw up here, good luck EVER getting a loan from an institution.

Makes the lending part of it even more attractive. They do a good job diminishing risk by being strict.

[AirMax95]

Oh, I agree, and love the concept.

I was on Prosper, and I plan to use one of these for my house down payment, lol.

Good luck to the OP.

[iarenick]

Much thanks lol
Sorry PLV haha. They are strict :P

[drpepper14]

Completely forgot to use your link to sign up, but i'm in the process of funding my account now

[Kevykev]

Interesting Concept, similar to certain insurance concepts.

nice!

[mad3nch1na]

i used ur link to sign up
i like the concept and the return is nice

[iarenick]

Appreciate it. Hasn't shown up yet. Maybe you used the wrong link?

[ksniperfox]

i used ur link to sign up
i like the concept and the return is nice

concept isnt anything new i dont believe. where do you think YOUR money goes when you put it in the bank? like 90% of it is loaned out. just food for thought.

[nx2000det]

Anyone on here using it already(with great success)?
Know of anyone on there not getting paid back?

[Julio]

I know someone who used something similar as an investor and lot a couple of thousands...

I rather risk my $$ in something else. Especially now how the credit crisis is going..

[2turbo4u]

I was talking to my pops today and he was telling me a story about the same type of lending scheme back in London,England over 35 yrs ago. His old co-worker didn't get to buy a house he lost his money.

[drpepper14]

I know of a scam about 50 years ago when a bunch of banks went out of business and people didn't get there money out....so I guess you shouldn't put your money in the bank either.

[2turbo4u]

I know of a scam about 50 years ago when a bunch of banks went out of business and people didn't get there money out....so I guess you shouldn't put your money in the bank either.

Hey wise guy go give your money to your boy Bernie Made-off!

[drpepper14]

Haha i'm just playin around. I've got some money in LendingClub and it's doing just great, but for such a new idea, I still have most of my investments in "safe" areas because no one wants to be the guy that dumped his life savings in hopes of a 12% return, only to end up standing in line @ the local soup kitchen next year when bernie madoff strikes again lol

[nx2000det]

So you staying with the A rated loans?
or even B?

[iarenick]

Yeah, Naturally, I'm going with the best I can find for the best interest :P Pretty cool. So far, made $0.45. Better interest than a Savings account no doubt.