Lending Club (LC)-
The revolutionary peer-to-peer lending platform that is still having growing pains-
I was upset when I could not participate in LC’s IPO.
Thank You God for stopping me from participating in LC’s IPO. As the stock graph shows it has been a steep downhill…
I have been following the stock for some time. LC is a good idea and the future of lending. But lending is not just easy…
As the I/S shows, LC is still losing money. Plus, their lending has decreased…
So the stock itself is not recommended.
Now, let’s talk about the performance of LC loans over the years-
I have a 8.62% return over many years. Not bad! My bank pays me about zero.
The problem is when I first started lending at LC, I had a 12%+ return but over the years, it went down and down…
The culprit was of course defaults-
So many defaults! My goodness, I thought LC did good due diligence and their algorithms was somehow superior-
I think it is somewhat superior but online lending is HARD! And people don’t pay-
Still I am satisfied with LC. It provides me some diversification and I like lending to those who need money.
I like to lend to professionals who are refinancing. I love those who have worked a long time, have a house, and have a 700+ credit score.
My lending criteria seems to be working so far-
Overall, I am very thankful that I can lend to people through LC, and provide them the financing to those in need.
Thank You Jesus for Your wisdom and riches. Let us share Your love and treasures with others- Amen!
PS
You can make 10% dividend yield by investing in AGNC and get paid monthly and liquidate quickly- Yup, mortgage REITs are pretty attractive. That is why I have been shifting more money into AGNC. Still I use LC for diversification and to finance those in need 😀
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