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  • Lending Club Launches Tool to Track and Compare Loan Performance
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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.

 

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Let’s forget about that, and take a look at some great articles and blog carnivals that were published this past week.

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Lending Club Disclaimer:

All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage and history. The APR ranges from 6.95% to 35.89%. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at time of application. *The origination fee ranges from 1% to 6%; the average origination fee is 5.2% (as of  12/5/18 YTD).* There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months or longer.

Author Bio

Rob Berger
Total Articles: 1118
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.
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Article comments

7 comments
Lima says:
June 13, 2009 at 5:47 pm

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?

Reply
Manshu says:
June 13, 2009 at 6:20 pm

Thanks for mentioning OneMint!

Reply
DR says:
June 14, 2009 at 1:06 pm

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.

Reply
Modough says:
July 4, 2009 at 12:45 am

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?

Reply
DR says:
July 4, 2009 at 11:57 am

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.

Reply
Modough says:
July 4, 2009 at 8:19 pm

Thanks for checking DR!

I’ll let you know if it shows up.

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

Reply
Ben says:
July 23, 2019 at 1:03 pm

Good info.

Reply