Social lending, or peer-to-peer lending, is a growing sector that connects borrowers and lenders.
Curious about trying this investment option?
Heres what you’re gonna wanna know to make a profit with Lending Club.
Source: Lending Club
What is Peer-to-Peer Lending?
Before we get into the details, lets define social lending a bit more.
Peer-to-peer lending (P2P) connects individual lenders and borrowers through online marketplaces.
Probably not as good as youd like.
It always seems like an uphill battle to build (and keep) a decent amount in savings.
But what if your car breaks down, or you have a sudden medical bill?
Ask one of these companies to help…
The process is more streamlined and efficient, and it reduces costs and hassle for both parties.
Its a win-win for all parties.
Why Choose Lending Club?
With so many different P2P lending sites available, why should you choose Lending Club?
I feel like I have more control over the outcome rather than just picking a stock.
Did you know?
How Does Lending Club Work?
The main appeal for borrowers is the much lower interest rate on loans compared to credit card interest rates.
Can You Make Money Investing With Lending Club?
Like with all investments, you should enter into the P2P lending sphere with a long-term wealth building mindset.
For example, Taylor is focused on longer-term investing.
You have to find another buyer for every note you own.
Dont let defaults discourage you, explains Taylor.
Wondering about defaults?Lending Club evaluates each borrowers credit quality and risk and assigns them a grade.
What About Fees?
In fact, this is one element Taylor would like to see upgraded.
I would love for there to be more transparency around the collections process, he notes.
Its unavoidable that some of your loans are going to default thats just part of it.
Whats Your Lending Club Investment Strategy?
When starting out, an investment strategy will help you leverage your money for optimal returns.
Create a quick set of rules or must-haves before determining which notes you will choose.
Base your investment strategy on these criteria.
Next, simply choose your account.
In May 2013 she quit her small business accounting job to pursue full-time entrepreneurship and blogging.
It sounds appealing right?
Check it out here!
