Lending Club Launches Tool to Track and Compare Loan Performance

Lending Club has just launched a new tool that allows investors to compare their loans’ performance with other lenders. This tool is part of Lending Club’s regular improvement of its site. From my experience, Lending Club has managed to create an incredibly easy to navigate site for both borrowers and lenders. In some ways, it reminds of Discover Card’s site, which is hands down the best credit card site in the industry.

Lending Club has figured out exactly what information users need, had has made that information easily accessible on its site. But back to the new tool, here’s what it looks like in my account:

lending-club-loan-comparison-tool

So in my case, net annualized return is about 5% above average. While that’s great, even one default and the return would come down significantly. So far I’ve been fortunate. But it is remarkable that the average return across all Lending Club investors is 9.94%.

This past week I had the opportunity to discuss my Lending Club experience with Barbara Bryn Klare, a journalist who writes two columns for the examiner.com. Here article, P2P Followup: Growing up is hard to do is a good read. Barbara also mentions my good friend Pinyo, who is a Lending Club investor and runs a wonderful personal finance blog.

If you’d like to become an investor in Lending Club notes, you can do so at www.lendingclub.com.

And if you are wondering how LC calculates net annualized return, the formula is really, really simple:

lending-club-net-annualized-return-forumla1

Hmm, well maybe not so simple. Let’s forget about that, and take a look at some great articles and blog carnivals that were published this past week.

Personal Finance Articles

Personal Finance Carnivals

Published or Updated: April 21, 2014
About Rob Berger

Rob founded the Dough Roller in 2007. A litigation attorney in the securities industry, he lives in Northern Virginia with his wife, their two teenagers, and the family mascot, a shih tzu named Sophie.

Comments

  1. Lima says:

    I’m sitting pretty at 7.98% I know it’s on the low side (compare to others), but I’ve kept it super low risk so far… After a year, only a couple of defaults (out of hundreds of loans). Seriously, who would have thought?

  2. Manshu says:

    Thanks for mentioning OneMint!

  3. DR says:

    Lima, 8% is good for super low risk. My 14%+ is with D and E rated loans, so I’m taking on a lot of risk. And it’s always important to look at risk-adjusted returns, not just raw numbers.

  4. Modough says:

    I finally took the plunge and signed up for Lending Club!

    I’ve been reading your blog for a while so I used your referral code too. How long until they deposit the $25 bonus in my account so I can start trading?

    • DR says:

      Modough, that’s a good question, but I’m not sure how long it takes. I’ll send an e-mail to LC today to find out, but I probably won’t hear back until next week. If you get the deposit before then, please let us know.

  5. Modough says:

    Thanks for checking DR!

    I’ll let you know if it shows up.

    Keep up the great blog and happy 4th! : )

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