Earn Higher Interest Income with Lending Club

If you are tired of earning only 3% or 4% from your standard bank CD’s, you might want to consider becoming a lender on Lending Club.  Lending Club gives you the opportunity to invest in Notes that represent loans made to pre-screened borrower members.

Lending Club members have enjoyed an average annual return of 9.05% over the last 18 months.  Of course there are some risks involved, but if you are careful about which borrowers you choose and don’t take on too many high risk loans, you can earn some excellent residual income from the interest on Lending Club loans. 

I have not personally used Lending Club – but I have been a lender on Prosper, which is another person to person lending website and the results have been great.  I am averaging 12% interest on all of my loans, but I did have one small $50 loan that defaulted.  That’s why it is better to have a large portfolio of loans and not give any large sums of money to one specific borrower.

Prosper is currently waiting for approval from the Securites and Exchange Commission and they are currently not accepting new loans.  So if you want to get into person to person lending to create residual income through interest, then Lending Club may be your best choice.  Lending Club does the hard work for you: verifying borrowers’ identities, assigning loan grades and interest rates, and processing monthly payments. All you have to do is chose the Notes you want to invest in, and watch your money go to work for you. They set interest rates based on historical default trends as modified by the current economic climate, among other factors.

Lending Club’s notes are offered pursuant to a prospectus filed with the Securities and Exchange Commission. Lending Club members should read the complete description of the Notes and the risks associated with making an investment, as well as the other information about them and their platform in their prospectus.

You can visit Lending Club’s website here: Lending Club

Let us know what you think about this review of Lending Club, if you have compliments, complaints, comments or you think it is a scam – let us know by commenting below…

Best regards,

Michael-John Wolfe

TAGS: Residual Income, Make Money Online, Royalties