I just noticed that it has been awhile since I've posted a Lending Club Update. The last one was in July. At the time, I was averaging a 7.2% according to Lending Club (whether that rate of return is trustworthy is open for discussion). I've been steadily able to raise that rate of return from around 5% by realizing that F grade loans return twice as much as the A and B grade loans... even after accounting for defaults.
It's taken a lot of time to raise my return up as I had a lot of A and B grade loans. However, over the last couple of years, more and more of those A and B loans have started coming off the books and have been replaced by the F grade loans. So today my accounts like this:
The rate of 7.63% is close to what one might expect from equities... and it is a lot better than the 6.71% return that I was getting in May.
I'm starting to favor putting more of my money to work in Lending Club. I love to diversify and I think P2P Lending allows for one to do just that. While Lending Club is, in a historical sense, a new company, the returns appear to be a lot more stable than some other kinds of equities. I have 171 active loans and I don't expect them to all go bad at once. The only thing that could cause that in my view is a bad economy... and it's working in this bad economy thus far.
If this sounds like something you'd be interested in, sign up for Lending Club today and start earning more interest.
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