My goal is to achieve a greater than 13% return using Lending Club, and my returns keep growing, even in the face of some setbacks.
My goal is to reduce the number of loans that default by using smart criteria, and this month was an excellent one. I stayed steady at 5 loans that are late 31-120 days and no other loans are 15-30 days late, so there were no big setbacks. 3 more loans were paid off early, which affects my returns negatively, but as I say, better to pay early than not to pay at all. Plus, all of my late loans have combined payments of under $5, so it’s not exactly burning a hole in my pocket.
16.02% Interest Rate
A few of my loans were showing up as in the grace period, and in the past week, 3 payments have come through, which explains the slight bump over 16%.
Take a look at my account snapshot:
I didn’t deposit any more money, but with 3 loans being paid off in full and expected monthly payments of over $150, I still have plenty of available cash. Ideally I’d go through once a week, but really I should make sure to invest the idle funds twice a month so that it’s not just sitting there. The goal of the account is to make money and make money is what it shall do!
Future Lending Club Plans
I’ve got enough to make another $25 loan, so I’ll be doing that in the next few days. I also now have expected monthly payments of $152, so that means 6 new loans a month. That’s pretty cool, I sit back for a month and I get $150 I didn’t have before. No wonder this lending business is so popular!