Bad Experience With Lending Club, Low Dividend But Not Bad Investment, An investor Review

Lending Club is One of the best Legit peer to peer Lending investment. Here is my quick Trading review, & Find Why Diversification Is Key.

Bad Experience Lending Club, Low Dividend Not Investment, An investor Review

My Personal Lending Club bad experience which I had for almost one year along with only 49% lending club Notes Paid out. Please, it’s my personal Experience don’t take for granted.

Trading My Lending Club Notes (Review)

In  August of 2013, I applied through website name via pre approval and started investing in Lending Club, and I must say that I had the best time with them with them due to the fact that I was getting dividend interest up to 12% of my $5,0000 (Five thousand) investment with them.

I expand my notes ( $25 is the minimum note you can start with, and review each time)  into 80 notes that each ranges from $25 to $50 and for that I did a lot of homework and had to spend countless days on yield optimization (YO) through systematic loan buying. The first year was great and yield more than 11% ROI with only 3 were written off loans. Even I trade and buy the notes in foliofn to look for better notes, which had good performing history.

Bad Experience Lending Club, Low Dividend Not Investment, An investor Review

Is Lending Club Good Or Bad Investment

P.S, My friend ask about my experience with the lending club was bad or good. I told my them this…….

But the last 8 months are worst period and mostly all my loans become the default and I must say I was personally affected.

Before my account get hit back further I mostly sell all my loans on very cheap or below the market prices. Even today, I have $100 still in my Lending Club account due to the fact that I didn’t get a chance to sell remaining notes. I had written it off as if it doesn’t exist. –

lending club Low Dividend Not Investment, An investor Review

Personally, I suspect that the Lending Club had lowered the lender’s requirements and I think they also lowered interest of the loans to attract more lending.

Besides, the profits are taxed as individual ordinary income, and it must be noted that the first-year taxes are very high, due to the fact that the defaults loans are mostly likely kicking in the later year.

Avoid Risk In Lending Club, Diversification Is Key

With high loan default and another alternative to going such as prosper( which I will review later), I would say be cautious  and avoid risk with Lending Club, the best way to do that is to diversify notes, which is key. The company revenue went down last and with few quarter the are losing money. The current risk is completely detrimental to the currently achievable returns. All my other investments are doing much better (Stock ETF’s, single stocks, REIT’s and some Fundrise).

bad experience bad investment lending club

The other preferable investment would single stock, ETFs or fundrise.

Is Investing in Lending Club Is worth it

To avoid getting write off I get I personally “loaned” individual who are homeowners and had no recent credit inquiries had no defaults primarily looking for debt consolidation and obviously have a good credit score before they are applying.

Though, well I won’t say the Lending Club is a bad investment but I should stay longer or re-invest notes to see how it goes. Maybe one year isn’t worth it to judge the company.

This is just Bonus material podcast. You may or may not find it interesting.

Lending Club Better Business Bureau Rating

User Review Website
Average Rating*
Number of Reviews
Quality of Reviews on Website
Better Business Bureau
4.18 out of 5
47 reviews
221 complaints
8.1 out of 10
7 reviews

Lending Club Rating

Lending Club Rating




  • Good For Good credit score
  • Can start with only $25 Notes


  • Bad for Bad credit score
  • High Interest Rates for low Credit score individual

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