Lendingclub.com and other investor/borrower websites

[typesh05]

I just recently came across online investing websites. I have read up on lendingclub.com in particular as much as possible, and it seems like a great site.

Can anyone with personal experience share their stories, success, downfalls, things to watch out for...etc.

Thanks.

Mike

[PsiPro]

These loans should all be considered high risk, and the parent companies don't do to much to recover your money in the event of a default. (I have not had any of my bad debt sold to a buyer)

Take a look at my stats: LendingStats - Lender Profile: PsiPro

I have defaults ranging from D to AA credit rating... its just a crap-shoot is what I have learned. So you have to adjust your interest rates to deal with the increased risk. I am getting 12% interest right now, once you take out the defaults I'm expecting 5-7% with my investment strategy.

When prosper starts offering loans again I will probably start using them again, I like them more then lending club (I have since removed all my money from lending club).

My #1 recommendation... Don't read the sob stories about why these people have bad credit scores. If they have 1 public record, or 1 default just move on.... Any loan on the site should be considered high risk.