How To Best Invest With The Lending Club

If you’ve found yourself with a nice chunk of cash in your savings, you might want to use the Lending Club to grow what you’ve got. The Lending Club allows you to lend money to your peers as banks lend to their customers. And like banks earn interest on the money they lend, so can you.

Of course, you might be thinking it’d be great to use that money on a vacation or maybe something new you’ve been hankering for like a car, but that’d be a mistake. It isn’t easy to save a chunk of money since there are literally tons of things you can spend it on. In fact, you don’t even have to leave your house to spend your money, you can shop online in the middle of the night  So kudos to you for saving it, but now its time to do something smart with it.


And doing something smart with it means making your money, earn more money for you. You can earn that money by investing in property or precious metals or you can use a peer-to-peer lending service like The Lending Club. Our editors have looked further into what The Lending Club is all about, and we’ve got details below. It isn’t all smooth-sailing, so make sure you read the details below before you make any moves.

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What is the Lending Club?

First of all, many of you may be stumped by the words mentioned earlier. Let’s clear the air by addressing the questions popping in your head about the Lending Club. It is nothing but one of America’s peer-to-peer lending companies located in San Francisco, California.


Now, you may be wondering what a peer-to-peer lending company is. It is a company that lets the average person loan money to another average person man with no bank intervening in this process. Once you want to help someone out, you lend them money by deciding on the term and interest rate. Companies like Lending Club will make sure that the money is disbursed, collected and paid to the investor.

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What Are The Risks Of Using The Lending Club?

You may wonder what if the man you loaned your money to does not pay you back? That is the reason why banks spend millions to a department that decides whether the person would pay the loan or default on the loan. So, how do you invest wisely in Lending Club?


It is a known fact that you can either earn great profits or lose everything you invested when it comes to the Lending Club. While there’s a very fine line between ‘going broke’ and ‘becoming a millionaire’, it is the ‘people you lend money to’ who make all the difference. First of all, you must know that when you enter The Lending Club’s website, you will find plenty of types of loans to choose from.

You will also choose who to lend your money to. Most investment-savvy people do a little background check on applicants. This check involves finding out if they have a job and whether they need money for a loan or simply to pay up another debt. However, the biggest problem here is that people easily lie on their profiles. While the company always goes the extra mile to take the genuine credit card information, one cannot attest if the additional details provided by your loanee is true or a hoax.

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How To Make Sure You Stay On Top Of Your Game At The Lending Club

In fact, the real trouble begins when you have to vet many applicants across various loan products. Does this mean you only cater to a few numbers of loan applications and stop making profits on your investment? In an endeavor to avert the cheats and earn big at the same time, the hack is to keep your initial lending amount small and increase it gradually. What’s more; it is always a great idea to choose diverse loans, geographies, interest rates and more.

The final risk that may come your way is the big institutions meddling in the Lending Club. It is only fair to assume that the platform works with hundreds of accomplished analysts who guide them about the right type of loan and customers to choose from. This ensures that the company makes big profits and has minimal losses. But this also can mean that the accomplished analysts may grab all the good loanees and leave a bunch of risky applicants to everyone else. So it is absolutely essential that you do some checks before you hand out some of your hard-earned money.

How To Make Money With The Lending Club Conclusion

Once you start making money on Lending Club, you will earn interest and principal at the end of the month. This amount just sits in your account without earning you any profit. Don’t simply let it sit there, instead, reinvest it in the best loan option on the site to take advantage of the system.

So if you’re not an accomplished analyst, you will have to do a little more homework before you approve someone for your loan. If you want to get your money to work for you, you’re going to have to do a little work too. But once you figure out how The Lending Club works and how to find good quality lendees, you could make yourself quite a nice bit of money and then go on that dream vacation if you must.