So I came across Lending Club a few days ago as an option for getting a loan as a much easier and lower cost than trying to go through a traditional bank.
It was on a radio show that I heard about this type of lending for Lending Club and other similar companies. So I quickly wrote it down to look them up when I had the next available chance.
I only had a few minutes of free time. I then pulled up the site to lending club and for shits and grins I plugged in my information and did a quick loan consolidation work up for 35,000. And after a few simple questions I think there were only 5 questions total. I was looking at a pre-approval and different level of the same loan I was asking for and different interest rates. Everything from 8~% to 21% to me seemed pretty high. But then I looked at just one of my credit cards that I have had for a few years now and the interest rate on that card and how many times I have said "I'm going to pay this thing off..." And that day never came. With a set time to your loan, you are more likely to have it paid in full, better than just having a revolving credit card.
So without accepting that loan I got to thinking. And then in just a single click I started looking at the investing side of the house and how it works. I was also finding myself opening other tabs to see what others were seeing, and saying about lending club and others of the like. I searched for the company’s history and also did a search for "Scam" to see if I could see what the real risks are to investing with these types of fairly new and young companies.
So what where the results of my research?
I found that people had their complaints, but their complaints did seem valid to me. Some of these people seemed to me unknowledgeable to investing or people that didn't understand that there is a potential of risk and loss. So I started looking over video after video of investing in P2P lending to see what others and other companies where saying.
After looking at all the information I could find at the time. I found that instead of being scared and afraid of invest my money; I found that I was getting more and more eager to get started. I started talking to my wife and introduced her to the idea of P2P and how we can be on the reserving end of the interest and make of money with minimum risk but still knowing that there is risk. But at least make more in interest then our little 0.10%APR interest that I was earning on our saving with our bank. Even if I make 2% APR, I believe it would make me happy. Granted that this it's what the company is advertising. In fact people that claim to be honest about what they are making are posting on their blogs they are looking at returns in the range of 12%-15%.
So I think those numbers look really good. I could possible make that... well maybe. But it is better for me to except a lower return and get a higher return. Then to Shot high and totally miss.
So that I am happy and not worried of pissed if I miss my mark.
I got the green light from the spouse. I filled out the investment account information and got the first part of the account information setup and after about a day and a half I had my account approved and verified and I then setup a $1000 fund transfer on Friday afternoon to start the fun.
So according to their email the funds should be available by 9/19/2013. In the mean time I have been looking over the loans that I would be interested in funding to get the investments rolling.