I decided to take a minute or two today to look at my Lending Club (Lending Club Reviewed) account today. For the most part, I don’t log in too often. I have to admit that I made some poor choices on loans on Prosper in the past and I’ve been waiting for the shoe to drop on Lending Club. Here’s the interesting thing… Lending Club has outperformed all my other investments this year. Check out my Lending Club portfolio:
So you are probably asking yourself this, “What makes LendingClub different?” I’m not 100% sure, but it could be because I took loans with relatively low risk. I erred on the side of caution after realizing that I took too much risk with Prosper. I also think that Lending Club typically has stricter standards for getting a loan. Maybe I just got lucky with the loans it put me in.
In any event, 59 loans paid off or in good standing out of 60 is pretty good. Even the outstanding loan paid me for a couple of months, so it’s not total loss from that person (just close to it). Perhaps P2P Lending has some legs to it after all.