Month 1: Lending Club Experiment

Background

In my first post about Lending Club, I made a $5,000 investment at the end of December 2017. A month has gone by and it’s time for an update!

Using their automate strategy, Lending Club allocated my $5,000 into 200 notes ($25 per note). My expected return states 3.71%-6.71%.

Update

So far, 1 note has paid in full. This means I’ve received $45.34 in principal and interest payments.

However, Lending Club took $0.67 in fees and I ended up with $0.67 in return.

 

 

 

 

 

 

 

 

 

 

 

 

 

The Analysis

ROI is 0.0134%.

For a month, that’s pretty ehh…especially when the bank is paying 1%+ interest at places like Capital One and American Express Savings. Had I put my $5K with Capital One, I would have earned $4.17 for the month instead.

However, this just the first month, so things should get better as more people start to pay back their loans. In looking at the details, I’m expected to see 120 and 32 notes pay their first installment on 2/3/18 and 2/4/18, respectively. So, I’m expecting February to be more interesting.

More to come!

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2 thoughts on “Month 1: Lending Club Experiment”

  1. I wish you luck with this investment; however my experience is that it is not. I had over $15,000 invested in LC last year, and I earned less than twenty dollars when you subtracted the written-off loans from the interest received. I have been an investor for about three years and while the first couple of years were good, the last year has not been. If you check the forums at Lend Academy you’ll see my experience is pretty normal.

  2. Oh wow! I can’t believe that! Thank you for sharing. They do a really good job to marketing to their investors. It does sounds a little too good to be true, but I assumed it wasn’t as good of a return as they say.

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