fbpx
U
May 2, 2014

lendingclub

The market downturn from 2007-2009 forced banks and other institutions to increase their lending standards for personal loans, as a result, peer-to-peer lending has found its footing. Because of this, Lending Club has been able to jump out front of the market for these loans. Brian and Bo have been dabbling with the site over the past year, and in this show they give everyone a rundown of their experience over the past year.

Since our podcast on this topic last year we have had a ton of feedback and read many articles that review the peer-to-peer lending market and  thought it would be fitting to do a 1 year update. Last year’s podcast was so popular with our listeners that a representative from Lending Club gave us a call to give us a behind the scenes look at how they operate (Disclaimer: we do not receive any compensation, discounts, “kick-back” or “special deals” for featuring Lending Club).

To share our behind the scenes knowledge with you, new loans are issued at: 9am, 1pm, 5pm, and 9pm ET. This is when the loans with the highest rated borrowers and highest interest rates are issued. The problem here is that, we know life gets in the way, and you probably are not going to be able to check in everyday exactly at these times. Lending Club has recognized this issue as well and has created a tool called “Prime” which is basically an “auto-pilot” buying service that you can use if you have over $2,500.00 with them. For those that do not have over $2,500.00 Lending Club will send out emails every time you have extra cash built up. The downside, you can lose money. Sometimes people cannot afford to meet their obligations with you. Also, morally, if you do not feel comfortable being involved with “debt instruments” this may not the best thing to do with your spare money and time. There are also consumer articles addressing concerns that Lending Club could be overstating their rates of returns. However, Lending Club upgraded their systems to help better calculate your expected return based on the quality of the notes that you have exposure to.

So, is Lending Club worth it? If you have “fun money” set aside and are looking for something to do in your spare time, we say yes, Lending Club could be a great resource for you. If you are looking for a get-rich-quick scheme or you are considering this in place of traditional savings or investments, then no, Lending Club is not for you.

FILED UNDER: Featured, Podcasts

Connect

Subscribe

Most Recent Episodes

The Best and Worst Types of Life Insurance!

No matter how much you know about finance, you’ve definitely heard about life insurance: maybe from commercials pitching it as something to buy your baby, or a family member or friend that got into the industry. Is life insurance worth getting or something you should...

How to Recover From 4 HORRIBLE Financial Mistakes!

In our nearly four decades of combined experience managing money, we’ve seen some horrible financial mistakes - here are the four worst we’ve seen first-hand and what you can do to avoid making a similar mistake. In this episode, you’ll learn: The worst financial...

New Data: Active Investments Are Better Than Index Funds?

A new research paper is out that claims active funds from two large providers, Vanguard and Fidelity, beat their own index funds. Are active funds beating index funds? What’s going on here? Let’s find out! For more information, check out our free resources...

Why Americans Are Actually Broke! (2023 Edition)

Americans might be bad with money, but you don’t have to be. In this episode, we discuss the underlying reason why Americans are so bad with money and how you can do it better. In this episode, you’ll learn: Common financial pitfalls you should avoid Practical steps...

Build Wealth With the 3 Bucket Strategy! (By Age) 2023 Edition

We believe there are three distinct taxable buckets you have the option of investing in for retirement. We’ll talk about how to balance those buckets by age and show a case study by age that shows what your buckets may look like! In this episode, you’ll learn: The...

Debt Ceiling Crisis: World’s Financial System at Risk?

Should you be worried about the debt ceiling crisis? Although political leaders have so far been unable to come to an agreement, we'll tell you what history says will happen and what it means for your finances. For more information, check out our free resources...

Financial Advisors React to INSANE Money Advice on TikTok!

Is financial advice on TikTok all bad or is there some good advice out there? Check out our brand new TikTok react show where Brian and Bo give their honest reactions to trending financial advice. Enjoy the Show? Sign up for the Financial Order of Operation (FOO)...

How to Save Thousands of Dollars in Taxes in 2024

Tax season is over for most of us, but that doesn’t mean it’s time to stop thinking about your taxes! Planning out your tax strategy in advance can save you time and money on your taxes. In this Q&A, we’ll discuss the line items on your return to pay attention to...

Average 401(k) Balance by Age (2023 Edition)

Are you doing better than the average American at saving in your 401(k)? We'll talk about basics of a 401(k), including new limits, employer matches, and vesting schedules, how many millionaires are created by 401(k)s, and of course the average 401(k) balance by age....