After the first month of my trial at Lending Club, I am happy with the results. I have received my first payments ($1.66 per month) which I can track on the Lending Club site or on Mint. Here is my current outstanding loan break down.
As you can see, I have $48.85 left outstanding. Assuming I want to re-invest, I can do so in 14 months. At that point I will have recovered over $25 from my investments. Lending Club looks like it will take .01 per loan per month as a fee.
After my trial, I can confidently recommend the Lending Club product. However, each loan is different. As long as my borrowers keep paying, everything is good. It is up to them if I get paid back. There is no collateral, or protection for me, in case of non-payment.
If you want an invite to trying out Lending Club, just let me know through the new contact form. You get $50 free if a current member sends you an invite.
I will keep you all updated as this trial continues. My $50 free is now growing by 12.21% per month. If you do sign up, be sure to look at each borrower closely. The letter grade system gives you a good idea of the risk you are taking on.
Have any of you tried Lending Club? Please tell us about your experiences in the comments.