Well the October numbers are out - I've averaged about 12.45% for the month, that's an annualized rate. Not too shabby. So far, all notes that are in pay status are paying and I'm awaiting a few more notes to complete the funding activity.
What is this? It is P2P or Peer to Peer lending. Folks gather toghether at a site, pool their funds, and then lend their funds to folks that need loans. Why only let the credit card companies and banks and etc make all those exhorbitant rates. The site does the paper work, recieves a small percentage of the collections, and the lenders win, the site wins, and the folks that need loans win.
Lending Club is just one of those sites. In order to get a loan through them, you must have at a minimum a 600+ credit score and several other factors. LC has keep up their integrity and not let anyone come through the door. You, the borrower, are assigned an interest rate based on the amount (maximum is $25K) asked for and your credit history information. Then after you make your application, you wait up to a total of 13 days to find out of the Lenders will fund your loan. Some loans can fund in 48 hours, others go to the last minunte. If they do, then you'll have the money in a day or two. Of course, the lenders might not feel you are credit worthy and not fund your loan.
Just some currents statistics :
From May 2007 through today - LC funded 7,220 loans for a total of $65,389,575
LC denied 75,896 loans for a total of $711,131,686
There are lots more information - This is not an endorsement or a recommendation - see the small print. If you are interested, contact me here, and I'll send you a link that will get you a $25 bonus if you would like to sign up and take a look around. Or go to the site and in the referral code - put in - smartfinancing.
Interesting concept - Let's see how November turns out.