If you have yet to hear about Lending Club, they are the world’s largest online credit marketplace.
Similar to competitor Prosper.com, they work by providing a platform for borrowers to obtain personal and business loans, and allowing investors to provide the capital for such loans.
As a user of their services, you can play the part of the borrower or the investor.
In this article, I’ll discuss how I use Lending Club as one of the many diverse ways of making money on the side.
*For more thorough, general reviews of Lending Club, check out the article from Lendingmemo and user feedback at CreditKarma.
How I’m Earning 5-8% Of My Investment Monthly
Everything is done online with Lending Club.
You simply open an account online and transfer in your funds. Then you pick and choose which Loans you’d like to invest your money in, and they can start as little as $25.
You will then receive monthly payments from the borrower that includes principal + interest. Once you start receiving these payments, you can choose to reinvest them to keep earning, or simply withdraw the funds.
Lending Club grades Loans by letter, for example “A” represents lower risk/lower reward and “C” higher risk/higher reward.
Their historical data show returns by Grade A-C of 5.19% to 8.88%.
I typically choose either A or B graded Loans, and have been getting roughly 5-6% in interest for most of the loans I’ve invested in.
While I am making some money with MoneysMyLife and trading Stocks, I have to admit investing in Lending Club is my easiest, most stress-free avenue of revenue on the side.
Check out Lending Club for yourself.