Lending Club (Part two)

I placed my first deposit into Lending Club on December 31st for $100 so I was able to start the 2015 new year off fresh on an entire year for Lending Club. I am still exploring Lending Club but pretty comfortable with the platform and happy with the returns I am receiving. I have been in Lending Club for almost 4.5 months now and have put a small sampling of $250 into it so far. Just last month I decided it would be ok for me to start allocating a monthly $25 deposit into the platform on the 1st of every month. While $25 may not seem like a lot it buys me one investment note which is perfectly fine with me currently. My objective with Lending Club is to keep on growing my portfolio on a monthly basis know matter what, even if I somehow forget to deposit some sort of funds into my account I will automatically have $25 placed into the account so I can create growth. While my sampling is still extremely tiny on Lending Club I quickly realized that Investing into A and B loans was a waste of time for me and that I need to just focus on the mid tier loans which are C, D, and E loans. I have yet to invest into an F or G loan and doubt I ever will because I never look at them due to the fact that they can create trouble for me in the future. But I will say I saw a glorious F loan with what I thought was a 25% interest rate but I was on my iPhone and the loan was only $25 away from being filled. I managed to click on the loan and take a glance at the appliers monthly income which showed up as over $12,000 a month but I clicked refresh by mistake and lost the loans info. I am currently recording a 12.72% return which is pretty solid, but determined that I can raise that up to an annual of 15%. All payments have been received so far and I enjoy nerding out looking at the large selection of Loans I get to analyze. I put most of my focus onto what state the person is from, if the loan has been approved by lending club yet, the job title, gross income, but I pay the most attention to the Credit Utilization. Credit Utilization is the biggest thing I look at when I am looking at the loans. You can find some golden loans even if they have a public record on file. A lot of people on Lending Club exclude people with Public Records on file which is understandable but Im in Lending Club to make money. I will give people with 1 record on file a look but if you have two or more it’s an automatic pass. Again though I put a lot of stress into the fact that my sampling is extremely tiny still and my averages are still really skewed. Truthfully I don’t think I will have a full grasp on the platform until next January when I have been in the platform for 1 full year. I do plan on making a larger deposit in the next couple of months to start kick starting my portfolio. But I am still at least two months away from doing that. An insane feature I wish we as investors had access to seeing would be being able to see what credit cards these people owned. If I was able to see the types of cards the people seeking loans owned that would solve a lot of risks for investors. I get enjoyment out of selecting my loans manually. I saw a company called Lending Bot created a robo platform for Lending Club and Prosper but I feel like you lose to much value with a platform like that. If you are a millennial joining the program you almost certainly have a smart phone and will be able to select your loans on your phone. I hope to participate in the SOFI IPO when they decide to go public and decided to take a pass on the ONDK IPO which went public about 4 months ago.

I am on a mission to find  way to earn interest for every single day of month. I looked at the idea of seeing an average of 30 days a month instead of 31 days and then just multiplied the 30 days by $25 which came out to $750 for 1 loan a day at 30 days. I already receive a few payments from multiple loans on the same day, but will still look at receiving two payments on 1 day as if I am receiving them on two separate days. Timing the loans to land on every single day of the month would be near impossible Im assuming. I am on board with Lending Club and hoping for it to be a continued success!

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