General

[blackmagic71]

Just curious if anybody else here is investing with lendingclub.com and what filters you might be using to pick your loans.

Stats for myself as of 4/17/2015
-Started about 14 months ago
-$7650 adjusted account value
-10.56% adjusted net annual return
-315 notes
-2 defaults
-5 currently 31 to 120 days late


Current filter (not terribly strict, but seems to be working)
-Approved loans only (otherwise it seems to take forever to go "live")
-700 credit score or greater
-0 inquires in the last 6 months
-50/50 mix of 36 and 60 month notes
-Mostly $25 per note, occasionally doing $50

^Using that generally only leaves notes with ratings in the A1 to B4(ish) range.

I'm expecting in the next several years my return will drop down to the 7% or 8% range (especially because I'm playing it safer now than the first couple of months), but I think that's still a pretty reasonable rate of return. Currently transferring in about $150/week.

[desertT1]

I've had this site bookmarked for a while now to start doing this.

You putting $600 a month into your account is going to be pretty sweet after a while.

[Axel]

One tried to sign up but citizens of the great Commonwealth of Pennsylvania are not presently welcome. Same for Arizona; sorry, DT.

"Currently only residents of the following states may invest in Lending Club notes: CA, CO, CT, DE, FL, GA, HI, ID, IL, KY, LA, MA, ME, MN, MS, MT, NH, NV, NY, RI, SD, UT, VA, VT, WA, WI, WV, or WY."

[blackmagic71]

It looks like Pennsylvania is open now.

At least it says $256,000,000 in loans have been issued in there.

[Axel]

I could borrow, but not lend

[blackmagic71]

That sucks, can't say I understand the logic for that one.

Right now I'm trying to decide if I should add even more to my lendingclub account or continue to split it about 50/50 with my TDameritrade account.

[sniper97]

On the filters, why no inquiries in the last six months?

I would rather be in the stock mkt...but nice return!

[desertT1]

Gah, WTF? I wonder what ancient law is holding this back as an unintended consequence.

[blackmagic71]

Originally Posted by sniper97

On the filters, why no inquiries in the last six months?

I would rather be in the stock mkt...but nice return!

More hard credit inquires general means more risk and that somebody has been applying for more credit. If I'm lending out money I don't want it to go to somebody that just got their 4th credit card or something.

Not sure if that's a wise filter or not yet (or if my reasoning is even sound), but it seems to be working so far, and I'll really be able to tell in about 12-24 months. Basically I know enough right now to be dangerous and I'm still feeling things out.

I think for the moment I'm going to try and maintain a 50/50 stocks vs LC split on my investing (excluding 401k which is a whole different can of worms.)

[Axel]

Originally Posted by desertT1

Gah, WTF? I wonder what ancient law is holding this back as an unintended consequence.

I assume it has to do with tax and reporting regulations among the various states, and working out the systems to stay compliant everywhere. Hopefully, they expand over time.