Description: The article is about lending club login. This is the introduction about Lending club. The author introduces how to use the Lending club and some great features about the Lending club. You can open an account at Lending Club.
My name is Peter Renton and I am the publisher of lend Academy and today we’re going to talk all about Lending Club,I’m going to take you a little behind the scenes of my Lending Club account,this is targeting at new investors or people who are considering opening an account at Lending Club,we’re going to cover some of the basics of investing and end of the Lending Club interface,let’s get started.
I have logged into my Lending Club account,I’m greeted with three large numbers. The net annualized return is lending clubs approximation. I found in reality that it’s reasonably accurate,it can be a little overstated particularly in the early days of your account.
When you first open an account,you won’t have a net annualized return,it’ll say new,you will not get one until 30 to 45 days after you have invested in loans. The payments will start coming back in and that’s when you’ll start getting your net annualized returns. If you’ve made a bunch of investments and as two weeks have gone by and it still says nothing,that’s totally normal,it will kick in soon enough.
I’ve had this account now for several years. I opened it up in June of 2009. I’ve received a lot of interest over almost four years. You can see the total payments of twenty seven thousand dollars. My account total is over 29,000. Lending Club provides a lot more details that you can dig into.
One of the things that I like to look at is my notes. I want to see what my notes are,I want to find out what I have gone current and what notes I’ve gone late,that’s probably the more things that I’m looking at. If you click on the more details screen,this will take you into a bit more breakdown about your account.
This gives you a breakdown by credit grade or by loan grade. Lending Club is letting clubs loans go from A through G with A being the lowest risk and G being the highest risk. I don’t invest in A’s anymore,I might have one account that still get one payment left.
I’m focused on the F and D,that’s the vast majority of my portfolio. I’m not recommending that for everybody,you’ve got to decide on what your risk tolerance is,if you’re happy to get some defaults in your account,you will happy to see some of your principals. I get defaults on a regular basis.
It’s part of the businesses of investing with borrowers,I’m getting well compensated for the risk,I’m getting higher than 10 percent return,I’m fine with doing that,that gives you a weighted average interest rate. That’s my average weighted interest rate.
If you go down here,there are more details,you can find out how much collection fees you have,how much service charges that Lending Club has taken and a bunch of other pieces as well,that’s a little bit more about digging into the details of your account,let’s go ahead and look at the loans and how to invest.
There are two ways to do this. You can do it by the easy way or by the automated way. By clicking on this link,Lending Club will bring up three buttons that will give you three different options. Option one is low risk,option two is medium risk and option three is high risk.
You can click on one of these options and have Lending Club select the notes for you. It’s an index fund,you’ll get a bunch of different notes and you can have your entire cash balance investing in four clicks in 30 seconds. You can do that if that’s what you want to do. That’s the way I started investing initially and I think it’s a great way to put your money to work quickly.
You can do better by choosing some filters and investing wisely. You can do better than average by doing that. I’m going to stop for everybody. The way I recommend and what I think worthwhile for people who want to take a bit more time on it is that you can click on browse notes,that will bring up all of the notes that are currently available,there are eleven hundred and thirty nine notes available.
You can go through them and look at each one of those one-by-one. I highly discourage you from tweeting that because that will take forever. What you need to do is that you need to filter the loans on the platform,you need to set up some criterias that will remove the loans that don’t meet your criteria.
One of my favorite criterias is a thing called inquiries in the last six months. This tells you how many times the borrower has requested credit in the last six months. This can be for a car loan,a credit card or a home loan. I have found in my research that having no inquiries generates the best return. I set this at zero,you need to update your results,you are going to filter out a bunch of loans on the platform. You’ve taken it down about half,that’s a great way to reduce the number of loans,there are still a lot of loans.
I recommend people doing a few more filters. The most important one is interest rate. You can find out what loan grades you want to invest in. I choose this one, there aren’t many of these,this is going to drop down the number dramatically. When I click update,that’s going to drop to down to 41.
That’s a manageable number. You can filter it. I don’t want to consider them. If I update my results with that,I’m down to 34 loans. This is a very manageable number,you can go ahead and read through all of these,you can spend a few seconds on each one and decide whether you want to invest or not.
Let’s click on one of these so you can get an idea of what these listings look like. There is a credit card refinance,it’s a typical request for a loan,this is from a borrower in Greensboro North Carolina,they work for dealership,their gross income is over $10,000 a month,they’ve got decent income,those are their monthly payment for the loan they requested.
They have requested a thirty thousand dollar loan,their monthly payments can be seven seventy nine,that seems fairly reasonable,you can keep going down,you can look at different things,I encourage you to do some research on the credit history,you can go ahead and look through the entire history of Lending Club through their downloadable excel file or through some useful tools.
These are some tools that allow you to look at the history of Lending Club and see which one has produced good returns,that’s where you can work out your own way of filtering,this is the credit information. You can open up this in a new tab by clicking on this link,that opens up in a new tab or a new window,you can do that. There are questions and answers,you can ask some preset questions of this borrower,there have been a bunch of people who have asked some of these preset questions,the borrower has provided the response.
Once you have found one option that you think is good,you can go back. I am going to close that up. If you’ve decided that’s the good loan you want to invest in,you can put it on how much you want to invest,I recommend twenty-five dollars. You’re investing a large amount of money,I mean at least ten thousand dollars.
You can click on that button,you can click Add to order,you’ve made your first investments,that’s the basic information,I hope you found that useful. If you are not a Lending Club subscriber or a Lending Club investor,I highly encourage you to open up an account,there will be a link that will take you to that. If you have any questions,you can always go to my blog and click on the contact me button,I will be happy to answer your questions.