Anyone been a lender on lending club?
Any advice from lenders on risks? Are there better returns on wealth front?
I have a low 5 digit lendingclub portfolio. I dont think the upside compensates for the loss of returns during a recession. I havent put in more capital in several years. Though it grows slowly, the risk is high to lose your shirt if there are a spike in defaults.
Does it make more sense to stick to wealthfront instead
21% return on Wealthfront last year. What did LC do? Yes, yes WF is a reflection of the broader market uptrend and can fall but so would Lending Club too on any downturn. People pay less on debts in recessions. I’m willing to bet Wealthfront beats Lending Club on a 5 year aggregate. Would even put a little wager on it. #blockChainSmartContractFTW
That’s amazing. What’s your risk level on wealth front?
I’ve been a lender for a couple years and my adjusted return is like 3%. Not worth it.
peerstreet.com 7-10% backed by real estate
Done that. Not worth the trouble.
Don’t Invest in LC. Many charge off loans and the latest credit model is a bust. Negative returns in 2018-2019
Tha ship has sailed
Why?
Lending Club doesn't even give the best available loans out to regular clients. You have to be an institutional client to see good returns. You can make 3% a year with LC but with rising rates there's less riskier options out there with less long term commitment. I've been on their platform for years and I'm now letting all my notes roll off. The high yield notes that were diamonds in the sand are few and far between now.