Advice on peer to peer lending companies like Lending Club

[Htakhanna]

I invested about 2k in P2P lending so I could enroll in their automatic program where they automatically invest any of my returns. I did it myself for a while and seemed to have gotten a much higher return. Now I see a lot more people that are 30-120 days late with their payment which has decreased my net annualized returns by a lot.

What has been your experience with P2P lending?

Do you do automatic or manual investing?

Is a 1% fee worth investing in this?

Thanks!

[cooliemae]

I've been investing small amounts of money in LC for the past couple of years and have seen a good rate of return. I do invest manually and I have definitely noticed an uptick in delinquencies. That being said, I'm still earning more interest at LC than I am at a bank, even with the delinquencies, so I'll keep chugging along.

On a side note, the money I invest is money I've gotten through checking account or credit card bonuses, so I don't have any earned money invested. While I like the return, I don't like the fact that the money isn't as liquid as I would like, which is one of the reason on my 'fun' money is invested and my earned money is in more traditional investment vehicles (i.e. bonds, 401k, etc.).

[bjl584]

l looked into P2P lending, but the state of Pennsylvania doesn't allow me to invest. It's illegal here.

[Singuy]

I had 63k in peerstreet and about 5k in LC. I am slowly pulling money out of peerstreet because there's a default in which they still haven't solved the issue, foreclosing on the house. I may put in more once the issue is resolved. The amount of defaults from peerstreet is MUCH less(1 out of 30+ investments) than LC.

I used to have a return of around 8% in LC but have slowly declined to around 4.5% with automatic investing. So far I'm not impressed, and I have been only investing in B-D notes.

[colby99]

I think its a brilliant idea as the risk is spread out so vastly. I also like the fact I get monthly returns which can be reinvested. Compound effect is greater because of this.

[frugal saver]

I'm slowly moving out of Lending Club. I did used to get fairly good returns, but after they started packaging loans to sell to second party investment firms, the available choices for the private investor went down.

I'm also seeing a lot more delinquencies that I ever have before.

[james.hendrickson]

I'm slowly moving out of Lending Club. I did used to get fairly good returns, but after they started packaging loans to sell to second party investment firms, the available choices for the private investor went down.

I'm also seeing a lot more delinquencies that I ever have before.

Yes, I get the impression they are trying to pivot to selling to institutional investors. LC isn't really peer to peer so much these days.

[Gailete]

Never heard of these, but then I'm in PA so that might be the reason as they wouldn't be marketed here.