While I was writing my alternative income for August, I remembered how I used to count projected interest from my Prosper account. I had stopped that in part because it wasn’t a significant number, but also I had made the mistake of many by lending out money to anyone at 29% thinking that it would have to pay off. I have admitted my mistake there. However, I noticed that my Lending Club account was different. In fact, it was best investment in 2008. Maybe taking the more conservative approach is the way to go. So why not start to add the projected income from that investment to my alternative income… and why not open up my Lending Club account for all to see?
As you can see, I’ve had over 100 loans and only 6 of them are late or charged off. My more recent lending (in the bottom half – i.e. tradable notes), I have only 1 late in 47 loans – perhaps the result of being more conservative or a better economy.
This is a good time to do it too since Lending Club is having a couple of promotions. They are offering to start you out with $25 if you sign up through this link (full disclosure: I’m compensated as well). If you are their 25,000 lender (projected to come in September, you’ll receive $2,500. You can read more about that here. Just conjecture on my part, but I would guess that they are within 1000 of that milestone. If I’m right, then your odds aren’t all that bad at winning.
Before you open a Lending Club account, I should mention that Lending Club notes are a very new. There isn’t a long history of performance to rely on. As such, I would exercise caution with putting a large portion of your portfolio into Lending Club. I would use Lending Club as a way to diversify a portfolio. If stocks drop a lot as we saw earlier this year, the Lending Club portion could help stem the losses.