Life Lending Club

BWillie · 03-20-2010, 10:54 PM

Has anybody tried this as a way to invest money? http://www.lendingclub.com

Apparently it is a peer-to-peer loan system. In this day in age where banks aren't giving anybody a loan, maybe it could take off. They say the average investor gets 9.65% return on their money. I think you even have control of what kind of loans or types of people are allowed to take loans w/ the money you invest.

I saw it a couple years ago on like 60 minutes, and remembered about it and looked it up. Some people have complaints about it, and some people rave that it's the best way to invest money right now.

I have 20K laying around earning pretty much no money, and I'd like to put it in a relatively liquid investment. Not sure if this is for me or not.

Nightfyre · 03-20-2010, 11:01 PM

My advice: Don't lend money unless you know what you are doing.

JD10367 · 03-20-2010, 11:05 PM

Neither a borrower nor a lender be. Or some shit like that.

We have lending clubs up here in the northeast. We just call it the Mafia.

I'll keep my money in the bank, earning shit interest, where at least the phrase "member FDIC" holds some weight (until the country goes under, that is).

**Kyle DeLexus** · 03-20-2010, 11:10 PM

We talked about a couple of these sites in one of my business classes. There is a lot of risk associated with for profit sites. According to my professor the site he showed us had a pretty high non-payment rate. Also on these sites, borrowers are able to shop lenders so lenders have to bid to give the loan. The low risk loans end up not giving much return on your investment.

Granted, I didn't look at this site so I'm not sure how it operates.

Nightfyre · 03-20-2010, 11:12 PM

Its awesome. you take the default risk and they keep the fees! I didn't specify who it was awesome for, however.

JD10367 · 03-20-2010, 11:17 PM

A fool and his money are soon parted.

There's a sucker born every minute.

If something seems too good to be true, it probably is.

Did I forget any?

**Slainte** · 03-20-2010, 11:32 PM

Quote:

Originally Posted by BWillie007

I have 20K laying around earning pretty much no money

What's wrong with a nice Roth IRA?...

BWillie · 03-20-2010, 11:35 PM

Quote:

Originally Posted by Slainte

What's wrong with a nice Roth IRA?...

Don't know much about it. I saw another askmen.com message board w/ a guy raving about lending club, but also see a ton of people who think it's a scam. Thought it sounded too good to be true, just seeing if anybody has any first hand experiences w/ it.

**Slainte** · 03-20-2010, 11:47 PM

Quote:

Originally Posted by BWillie007

Don't know much about it.

Information is so easy to find on the internet these days...

BWillie · 03-20-2010, 11:49 PM

Quote:

Originally Posted by Slainte

Information is so easy to find on the internet these days...

No sh*t really?

HMc · 03-21-2010, 12:11 AM

i don't think it gives you a disproportionate potential reward against the risk you are taking or anything like that, but it might provide an avenue for investment at particular return levels that you can't easily access elsewhere.

I havent looked into it but i'd assume that if there's a reasonable volume of money genuinely being borrowed through it that the lender is just as protected as if they were lending money to any other non-financial institution borrower. ie there's a contract and you may or may not hold a charge over some collateral (depending on the terms that you negotiate).

HMc · 03-21-2010, 12:14 AM

around these parts you can get 5.85 % with no min balance and no risk at the moment.

ForeverChiefs58 · 03-21-2010, 12:15 AM

I need a loan for a million dollars. I don't really want to do anything with it, I just want to be able to say I have a million dollars.

Hog's Gone Fishin · 03-21-2010, 12:51 AM

If you got 20K lying around you might look at buying (uso) , United States Oil supply, it's in the 35-40 $ range right now, when gas was 4.00 a gallon it was over 100$, we put 50k in just waiting for the shit to come down in Iran.

runnercyclist · 03-21-2010, 04:23 AM

Quote:

Originally Posted by BWillie007

Has anybody tried this as a way to invest money? http://www.lendingclub.com

Apparently it is a peer-to-peer loan system. In this day in age where banks aren't giving anybody a loan, maybe it could take off. They say the average investor gets 9.65% return on their money. I think you even have control of what kind of loans or types of people are allowed to take loans w/ the money you invest.

I saw it a couple years ago on like 60 minutes, and remembered about it and looked it up. Some people have complaints about it, and some people rave that it's the best way to invest money right now.

I have 20K laying around earning pretty much no money, and I'd like to put it in a relatively liquid investment. Not sure if this is for me or not.

"Oh, nevermind, I decided to bet it on the Jayhawks last night - problem solved" - BWillie007

03-20-2010, 10:54 PM
BWillie Future NBA Finals MVP Join Date: Apr 2006 Location: Earth Casino cash: $2391241	Lending Club Has anybody tried this as a way to invest money? http://www.lendingclub.com Apparently it is a peer-to-peer loan system. In this day in age where banks aren't giving anybody a loan, maybe it could take off. They say the average investor gets 9.65% return on their money. I think you even have control of what kind of loans or types of people are allowed to take loans w/ the money you invest. I saw it a couple years ago on like 60 minutes, and remembered about it and looked it up. Some people have complaints about it, and some people rave that it's the best way to invest money right now. I have 20K laying around earning pretty much no money, and I'd like to put it in a relatively liquid investment. Not sure if this is for me or not.
Posts: 46,024

03-20-2010, 11:01 PM	#2
Nightfyre MVP Join Date: Mar 2004 Location: Helena, MT Casino cash: $3598849	My advice: Don't lend money unless you know what you are doing.
Posts: 18,555

03-20-2010, 11:05 PM	#3
JD10367 Cheaterlover* Join Date: May 2009 Location: RI Casino cash: $10010716	Neither a borrower nor a lender be. Or some shit like that. We have lending clubs up here in the northeast. We just call it the Mafia. I'll keep my money in the bank, earning shit interest, where at least the phrase "member FDIC" holds some weight (until the country goes under, that is).
Posts: 12,916

03-20-2010, 11:10 PM	#4
Kyle DeLexus Opie and Anthony XM 105 Join Date: Nov 2008 Casino cash: $10002400	We talked about a couple of these sites in one of my business classes. There is a lot of risk associated with for profit sites. According to my professor the site he showed us had a pretty high non-payment rate. Also on these sites, borrowers are able to shop lenders so lenders have to bid to give the loan. The low risk loans end up not giving much return on your investment. Granted, I didn't look at this site so I'm not sure how it operates.
Posts: 7,910

03-20-2010, 11:12 PM	#5
Nightfyre MVP Join Date: Mar 2004 Location: Helena, MT Casino cash: $3598849	Its awesome. you take the default risk and they keep the fees! I didn't specify who it was awesome for, however.
Posts: 18,555

03-20-2010, 11:17 PM	#6
JD10367 Cheaterlover* Join Date: May 2009 Location: RI Casino cash: $10010716	A fool and his money are soon parted. There's a sucker born every minute. If something seems too good to be true, it probably is. Did I forget any?
Posts: 12,916

03-21-2010, 12:11 AM	#11
HMc from the very deep south. Join Date: Dec 2005 Location: Sydney, Australia. Casino cash: $9944900	i don't think it gives you a disproportionate potential reward against the risk you are taking or anything like that, but it might provide an avenue for investment at particular return levels that you can't easily access elsewhere. I havent looked into it but i'd assume that if there's a reasonable volume of money genuinely being borrowed through it that the lender is just as protected as if they were lending money to any other non-financial institution borrower. ie there's a contract and you may or may not hold a charge over some collateral (depending on the terms that you negotiate).
Posts: 2,792

03-21-2010, 12:14 AM	#12
HMc from the very deep south. Join Date: Dec 2005 Location: Sydney, Australia. Casino cash: $9944900	around these parts you can get 5.85 % with no min balance and no risk at the moment.
Posts: 2,792

03-21-2010, 12:15 AM	#13
ForeverChiefs58 MVP Join Date: Mar 2009 Casino cash: $2885326	I need a loan for a million dollars. I don't really want to do anything with it, I just want to be able to say I have a million dollars.
Posts: 10,525

03-21-2010, 12:51 AM	#14
Hog's Gone Fishin Fish are scared of me Join Date: Nov 2001 Casino cash: $1660477	If you got 20K lying around you might look at buying (uso) , United States Oil supply, it's in the 35-40 $ range right now, when gas was 4.00 a gallon it was over 100$, we put 50k in just waiting for the shit to come down in Iran.
Posts: 40,361