INVESTING with Lending Club 4 YEARS LATER – Lending Club Review 2019


in this video I’m going to save you guys
a lot of time a lot of frustration and a lot of money when it comes to Lending
Club just keep your money in your bank accounts keep your money in your pockets
don’t invest watch this video to find out why there’s one company that I
invested in I thought it was a good idea in the beginning but now after all this
time I realized that I just wasted a lot of my money and a lot of my time but
this is my story and why I don’t recommend Lending Club in today’s video
I’m gonna go over Lending Club Lending Club is a peer-to-peer lending platform
it has really gained more popularity in the recent years but I started about
three to four years ago I started about four years ago but I started about four
years ago and this is my personal story with the Lending Club so now that we’re
in the Lending Club mobile app I just have to let you guys know that they they
only recently came up with this Lending Club mobile app just a few years ago I
think I downloaded this two years ago and when I first signed up with them I
only was able to use their web-based platform and my total value at the
moment is 109 dollars cash available is less than six dollars and to my
detriment my adjusted returns net annualized returns is less than 5% if I
invested in the stock market in April 2015 I would have been able to ride that
bull market with everybody else and I would have received probably fifteen to
twenty percent returns on whatever I invested if I just invested in like a
low a low fee index fund but I didn’t and I paid the price for that when
you’re investing with Lending Club you have to buy these notes and each notes
has a grade and the higher the grade the less risky the notes are and the less
interest those notes will pay and on the other end the lower the grade the higher
the risk and if you’re taking like GF gray G great notes if you’re buying
those most likely you’re not gonna be seeing any returns most likely you guys
will not be getting a paid back you will have a very high interest rate when I
when I for first invested I don’t think there was
even an effort gee grade and I was investing in mostly B C D and E grades
so at the time I bought 43 notes and my weighted average return was supposed to
be 14% so it went from 14% to 15% net annualized that’s unbelievable
if you that’s a that’s almost a 10% difference in what actually happened and
what I was supposed to have as a actual return and another bad thing about
Lending Club is that whenever you are investing in these notes you know you’re
putting in your cash and you’re investing it for a very long time so my
weighted average was 38 months 38 months that is 38 months divided by 12 which
makes it a year that is three years this company is holding your cash for three
whole years over three years so when it comes to liquidity when it comes to
being able to utilize your cash you won’t be seeing that back for a very
very long time that’s why it’s taking me so long to take out all of my cash from
this company I still have $100 in this I still have
$100 in principle but I’ve been slowly taking it out over the past maybe one or
two years and it’ll take me a very long time to even withdraw this $100 from
this account so this is the status for my holdings at the moment I currently
still have thirteen notes which equal one hundred and three dollars none of
them are in grace period and none of them are late so this is how they set it
up right if your notes are in the grace period that means that investor has a
few days to pay back for your note to be current and if not it goes into the 13
to 30 days late and and then it will go back into the 31 to 120 days late and
after that is it’ll just be defaulted and if you look here at the bottom I’ve
only had twenty-one notes for we paid off and look how many I have
charged off about half of my notes were charged off like how crazy is that
over a hundred and twenty eight about one hundred and twenty eight dollars was
charged off that means that money’s all gone I won’t be seeing that back at all
and I think that’s why my net annualized returns was so low it’s just because I
had so many charged off notes so in total and have eight notes in the 36
months and I have five notes in the sixty months and man it’s gonna take me
a long time to get everything back out but you know that’s what I signed up for
and at the time I did not know this and and that’s why I’m telling you this now
don’t invest with Lending Club it just takes so long for you
it just takes so long for these notes to finish and at the end of the day you
won’t know if you’ll be paid off or not and most likely you won’t most likely
you’ll be just most likely all your your cash will just get charged off and it
was just not a great experience overall so my automated investing of a have that
turned off you know I don’t want to invest any more money with Lending Club
they give you the option to buy your own notes and you can go into detail unlike
and you can go into great detail about the borrower you you can see if they
owned a home or not you can see how long they’ve been employed you can see their
gross income you can see all of that so that’s also another reason why I did so
poorly when it comes to investing with Lending Club
I just left everything up to the algorithm and I didn’t do too much
research when it comes to these individual notes and ultimately I paid
the price for that one thing about Lending Club is that they make it very
easy to put your money in but after your money is in they make it very difficult
to take your money out and just for further proof here on my statements I
have 48 reports and I get one report every month so I have been invested with
them you know throughout 17 2016 and all the way April 2015 that was the first
month that I invested with Lending Club it took me a very long time to make this
video it took me about three this is my third time trying to make this video
because because I was actually very embarrassed
I didn’t I didn’t really want to publish this but I have to let you guys know
that Lending Club I just had to let you guys know that Lending Club sucks
and they you know there is a possibility to make money with Lending Club like
technically I did make five percent returns but what they advertised and
what I got back was completely different so what I actually thought I was gonna
get was 14% returns and what I’ve received in return was like nine percent
off and like with all that money I’ve invested if and with all that money
invested in Lending Club if I just put it somewhere else yeah if I put it into
the sp500 I would have got so much more money back with this video that’s what I
want to get through with you I just don’t want you guys to go and make the
same mistakes that I’ve made investing in Lending Club if you guys if you got
if you guys were on the fence about using Lending Club hopefully this video
persuaded you not to use it because like I said liquidity is very poor when it
comes to them once you put your money in is locked up and it’s locked up for a
very long time three years four years five years and if
you guys want that I don’t know why you guys would want that but if you guys
want that you can go with this route and on top of that if you are investing with
them make sure you pick individually which notes you’re going into because
because if you leave everything to their algorithm most likely they might be
picking some really bad notes for you like they picked for me and that’s my
review on Lending Club hopefully that saved you some money because I lost a
lot I lost a decent amount when it came to them the
opportunity cost I would have made a lot more with something else if you guys
want to watch some of my other videos on Robin Hood investing and one finance
investing you go check it out here and leave me a like if I hope you guys save
some money here and don’t forget to subscribe I come up with three videos
per week and I hit the notification I’ll see you guys in the next one bye
if you’ve made it this far to the end of the video I’m gonna give you a special
pro tip if you still wants you invest with the Lending Club you guys might
want to take a look at Lending club’s stock yes Lending Club is a publicly
trading company they’ve been on the market for a few years now I think over
five years but in my opinion it is not that much better it is only just a
little bit better because because Lending Club has been trending down for
the past few years why do I think is better is because your money won’t be
tied up for a long period of time and if you decide to sell you can sell right
away and you don’t have to wait for any contracts or notes to become completed
and also I would like to announce that I have new merch if you want to check out
my merch I have a few designs up I have a few t-shirts through sweaters so
everything is in the links in description and I also have a new
membership I don’t have that many members right at the moment but if you
want to support the channel join the membership community and also buy some
merch thanks for watching I’ll show you guys out on next video bye

85 Replies to “INVESTING with Lending Club 4 YEARS LATER – Lending Club Review 2019

  1. Thank you Bruce for giving us the warning. I think just staying with long term investments saves your hard earned money.

  2. I've been using them for quite a while myself. Yeah, if you don't filter and pick your loans manually, you'll do crappy. I've been picking my own and im still making 14% on mine. You also have to realize, as your lendees pay you back, you're making money on interest and pinciple…so not all of your money is tied up for 36-60 months. I still recommend using them, but you've got to do your DD and I wouldn't put a ton of money in there.

  3. Been with Lending Club for over a year with no problems. I am getting good returns. A friend has over 300k in, getting 5-6k back every month.

  4. Yeah, I have mixed feeing about Lending Club and especially Prosper!.. It seems like people who apply on Prosper do not even plan on returning the loans… 🤦‍♂️ but Lending Club..so far it’s ok, with 10% annualized, and I’m reinvesting all proceeds back into other loans and I’m picking very carefully. I’m planning to keep it this way for the next 5-10 years and then start actually collecting the proceeds.

  5. Awesome to see a video on a review of Lending Club. Your assets are tied up for a long time with company, pretty cool to see someone who has gone through the process.

  6. Great video. Lending club sounds like a cool idea but I wouldn't put more than a small bit of money in it. I imagine we will get more videos about people losing money in the future. I just think if you had to make a choice, paying your lending club loan would be the first loan to skip.

  7. I'm not a huge fan of p2p, pretty much for the reasons you outlined.
    Hmm, have you thought about approaching some other P2P companies and offering to do a review for them for some funds in an account? Think this would be helpful for others looking for different p2p opportunities.

  8. SMH, Lending Club only getting me just over 4%. I tried to be safe and be selective of who to loan but stil not worth it. I'm not even reinvesting anymore.

  9. Ya I invested $1000 with lending club and I regretted it. It's hardly growing now im slowly pulling my money out. I'm just glad I didnt invested more to this company.

  10. It doesn't get much more passive than a peer to peer lending platform like LC. A few clicks and you got 5%… it probably took longer to shoot and edit this video than it did to set up this account…. My tip to viewers… don't stress about the few notes that do not get paid in full. Think about the 90% of notes that will get paid back. Plant your seed (set up account and add initial funds) Water your seed (add funds regularly) and sit back and watch your tree grow.

  11. I think your first problem was thinking you were going to do nothing and get a 14% return. Your 2nd problem was not understanding that the loans were 3-6 years (you can get your money back sooner). Finally if you would have done some research you would know you are only going to get around a 5%-7% return. I'm happy with parking some money and getting 5% 7% returns when the bank is paying .2%. Don't bitch if you are not going to research it first!

  12. 3 years is not a long time. in the investment world its a pimple in the ass of time. looks like you wanted to make some fast cash.

  13. Yea, a Peer to Peer investment like Lending club or similar; should be at the bottom of your investment funds. Purchase a minimum of 40 notes a year, that you manually select and if you have the stomach for it go for the riskier notes.

  14. @1:20 your automated investing strategy is definitely different than the default. Seems you could have changed it before since you do have some B notes.
    Seems weird to blame the 'algorithm' if you edited the strategy, especially excluding all A notes.
    I've only been with LC for two years now, and I auto-reinvest everything, so it's difficult for me to really endorse or deny them. This part of your video seemed out of place to me though.

  15. You need around 100 notes to be truly diversified on a P2P platform… I am surprised you had a positive return at all, one default can negatively effect such a small investment amount. I am in Prosper P2P lending on a 2 year trial period with $2200 investment (88) notes @ $25 per note. I have made 12% ROI the past two years.

  16. I ignore NAR also. I calculate ROE from my initial deposit and the difference of interest minus the charge offs. In theory if you have a bad dip in ROE due to a flurry of charge offs, the ROE could still improve with reinvesting in safer notes over time. ALSO never double down bad notes…that ends up being too risky.

  17. Hey Man dont be discouraged about informing us! I follow you so I can learn and minimize the number of mistakes I do. I learn more and more about dividend investing from you. I have been using Robinhood but mostly M1 and learning! So I really appreciate you taking the time to inform me about this stuff!! Keep up the great work!

  18. I been doing with lending club but very selective with the loans. I invest in smaller loans and 36 months only. I'm getting a consistent 8% return. That did not happen over night for me. I like you video gonna give it a thumbs up. Thank for making your video! Have a great day.

  19. Ok did you not have a chance to select your own notes? You have to make more informed and researched selections on your investments and it's called long term investment, so you shouldn't look for returns right away, but keep trying.

  20. im yielding 18% currently… I think what most people miss on is your on an amortized loan, aka, the payments slowly shift from interest (in the beginning) to principal (in the end)… that's why your yield drops so heavily as you exit the market
    I currently have held (including paid and default) 197 loans, most in the G category (I weigh back to the B category though), 13 have been paid off early, 1 has defaulted, im expecting 3 more to default, 6 loans on top of that are late (some loans are repeat offenders for sure, I have one that's been late 6 times, but they catch back up). I've been invested for 8 months with 7k and have received a total of 651.89 in interest, and another 1346.80 in principal payments (-fees), I am expecting a total of 3578 in in interest assuming no further defaults, and no early payoffs (which I love early payoffs, it brings me back to the early interest payments on the loan).

  21. "They're holding your cash for 3 years.. That's 3 whole years" you say this as though you had no idea when you signed up?? Come on now.

  22. Bruce
    A lot of your loans got charged-off. Is there any mechanism to get independent audit or verification or you just have to take Lending Club's word for it?

  23. you are not smart . more you try more it shows , you had to use a calculate what 38 months is in years?? really ,stay away from investing man ,

  24. Wow, sounds like you had no clue as to what you were signing up for. No wonder you werent all that sucessful, its all on you. How did you NOT know your money would be locked in the entire life of the loans? You failed to mention you were getting paid interest the whole time.

  25. thanks a lot dude!!!! i was about to open an account with lending club this very day….u just legit saved me bro 😀

  26. My account is nearly as old as LendingClub and I'm still making money off the account. I have my own filter and manually choose my notes. My NAR is currently 3.85% after all this time. I've made a few hundred bucks not even taking it seriously.

    Learn to read credit information. Don't go with their automatic features.

  27. I trade stocks for a living, I've never invested in p2p loans, just a disclaimer. However, 5% is a pretty solid return. It certainly beats CDs or most other passive income streams. However, what worries me about Lending Club and similar companies like Prosper is they are losing millions. The way it's setup, if Lending Club were to go bankrupt during the next recession, all investors would lose their money, but the borrowers would still be required to pay Lending Club.

  28. I completely understand what your saying i wonder what you did diffrent i have been with lending club now for a whole 2 years with a initial investment of $1000 with a 8% annualized return since then i have not invested my own money but have Reinvested the money i get back which is almost every 10 days…

  29. I watched a video from lending club when I first open my account. I have not funded my account yet and will not because the video said I would get 14% return. Then it said after write off etc, my actualized return would be 5%.
    My money market pays 2.5%and that just sits there no risk. Why tie up your money for years and accept risk unnecessary? So many other options.

  30. Unlike this dude who absolutely did no research. Beginners…YouTube lets talk money with Joseph Hogue CFA. I'm sorry but the way this guy prepared, he would fail in stocks, bonds, etc. Who the hell invests money blindly

  31. "I'm going to invest in risky creditors, then wonder why I didn't get back half of my investment…" You told us you invested in low rating notes. They're high interest because they are high risk. You said you made 5%, so I don't know why you're complaining.

  32. The big issue is you really didn't put in enough money. You need at least 100 loans to be properly diversified. I do think you are correct with a decent bit you said though but the problem with the stock market is you might lose 25% over a month or 2. Where P2P lending is almost always going to make a profit.

  33. Your time horizon seems pretty short. Not only that, your overall APR was 5% when you combine everything together over multiple time frames so it will go up and down depending on which notes are maturing at what time right? This is for income, not principal appreciation. Also at the time of this post, Lending Club stock was $3, now its over $14 maybe you should have bought the stock instead!

  34. Kind of stupid that you didn't grasp the basic's of lending. There is always a term. It is a basic contract fact. It should not have been rocket science to understand.

  35. What investment platform has made you the most money and which one do you recommend. Too many videos out there. Lol.

  36. We need to have an investment platform that generates good cash flow while investing small amounts, because 100,500,10k is not going to cut it. Seems like you need 100k to start making decent money. Consent 20 percent gainers if you have 500k or more.

  37. I researched plenty and still lost alot on A class loans. Actually lost more on A loans that C loans. I agree-run dont walk from that POS 'investment' idea.

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