Comments on: How to Evaluate a Lending Club Loan

By: Mike

Mike — Sun, 31 Jul 2011 18:07:38 +0000

These are great tips. A criteria that I’ve found useful in my own investing is looking at the Debt to Income Ratio. I think a value over 20% represents a serious risk of default.

There is a loan analyzer over at smartpeerlending.com that makes it easy to scan through a lot of loans at the same time.

By: Sun

Sun — Wed, 02 Mar 2011 14:53:11 +0000

That’s a good point.

By: Julia

Julia — Mon, 28 Feb 2011 14:41:43 +0000

I usually avoid loans for small business and medical expenses all together. For small business, though I know LC can be a good source for low interest rate loans, it’s just that the income may not be stable enough. For medical expenses, they could be large and take years to clear up.

By: SXSW Angels

SXSW Angels — Fri, 25 Feb 2011 17:45:52 +0000

I have a Lending Club loan and it’s proven to be hassle free and such a blessing. Once I’m out of debt, I’ll definitely look into it as an investment avenue. -BF

By: anthony98

anthony98 — Thu, 08 Jul 2010 21:26:51 +0000

it depends on how much interest on your investment you are desiring for your return. For me,… I like to go for 18% interest. Grant it, the higher the interest, the riskier the client, however, clients have proven themselves over the years and diversification is a great safe guard and lending club places this front and center. the breakdown goes as follows:

$1000 is your amount
Term (Years): 3
interest 18%
monthly payment from investing: $36.15 or $433.80 a year or $1301.40 over full term. subtract 1% from the lending club rules from each account in your portfolio

you make these numbers plus your investment is returned back to you as a thank you for paying your good fortune forward.

you can make 3 or more time the profit by reinvesting your full dividends and living from 10% along the way…. you’ll be well off through recessions!

here’s a link to a calculator we use!