My goal is to achieve a greater than 13% return using Lending Club, and this month I took a step back, but hopefully the worst is behind me.
I’ve been doing some complaining about loans that have been paid off early, but this month was a tough one because of a few old loans that haven’t been paid in awhile. Actually, the performance this past month has been pretty good. Another loan of mine came back into good standing, but another was charged off, which is where the drop in interest rate comes from.
I’ve tried to reduce the number of loans that default by using smart criteria, so hopefully I’ve been getting better and I’ve seen fewer loans have skipped payments.
13.71% Interest Rate
I have fewer loans in the grace period, so I think the future looks bright, and I have no new loans that are late.
Take a look at my account snapshot:
There were no new deposits this month (and I’m not planning anything for the next few months, at least). Still, with expected monthly payments of over $150 and, I can’t just sit back and relax. I’ve gotten into a pattern of checking for loans every two weeks, which isn’t too burdensome and doesn’t leave cash sitting idle earning 0% for very long.
Future Lending Club Plans
I won’t be doing much other than simply staying the course by investing in new loans and watching payments come in.
I’ve got my fingers crossed that the worst is behind me, and if a 13.71% return on my investment is the lowest this account gets, I will be pretty happy!