Lending Club Review 2017 – Peer to Peer Lending
This is My Lending Club review for 2017. Peer to peer lending is an alternative to the stock market or real estate investing. P2P lending is a platform for an individual to request a loan from a funding source other than a bank. The majority of lending club loans are requested for:
- Debt consolidation
- Credit card payoff
- Home improvements
- Major expenses
It is a way for you to lend money to your peers. The company I used was Lending Club. They are the largest and best-known company out there. Lending club lets you invest a small sum of money, as little as $25 into each loan. Money is pooled from many investors to fund the loans.
Although you can get a decent return (5-7% historical return per the Lending club statistics), I have found better and less time-consuming ways to build my passive income portfolio. In My option it appears that large investor with millions of dollars to invest using automated systems have taken the most profitable loans away from the small investor.
There is always a risk in investing. Lending club does have very strict credit requirement to qualify for a loan but I am not sure how much of the consumer information is verified. This form of lending is fairly new. There is no long-term statistic to verify returns and delinquency rates during difficult market conditions or a downturn in the economy. Remember lending club loans are unsecured loans.