7 Months Into Lending Club Review

Review of Lending Club at 7 Months.

My Lending Club account has been active now for about 7 months. At this point, a lot has happened including early accounts fully paid, late, and charged off notes.

I starts with 100 different $25 notes. For the first couple of months, I checked my Lending Club account almost daily. In total, I ended up purchasing 9 additional $25 notes with money from interest and notes that fully paid of early. 

A High Level Lending Club Overview

Now that my Lending Club account is approximately 7 months old, here are my current stats:

  • Issued & Current: 97
  • In Grace Period: 1
  • Fully Paid: 4
  • Late 16-30 Days: 0
  • Late 31-120 Days: 4
  • Default: 0
  • Charged Off: 3

Additionally, I currently have $374.84 in available cash with an Adjusted Account Value of $2555.27. That means my Adjusted Net Annualized Return is 4.13%. I've received $210.58 in interest and Total Payments of $604.16 (Principal & Interest).

Which Lending Club Notes Have Problems

  • In Grace Period
    • E
      • Interest Rate: 19.99%
      • Term: 60
      • Outstanding Principal:  $23.45
      • Payment Received: $4.15
  • Late 31-120 Days
    • E
      • Interest Rate: 20.99%
      • Term: 60
      • Outstanding Principal:  $23.76
      • Payment Received: $3.35
    • D
      • Interest Rate: 16.99%
      • Term: 60
      • Outstanding Principal:  $23.63
      • Payment Received: $3.08
    • E
      • Interest Rate: 19.19%
      • Term: 60
      • Outstanding Principal:  $23.97
      • Payment Received: $2.58
    • E
      • Interest Rate: 18.25%
      • Term: 60
      • Outstanding Principal:  $24.21
      • Payment Received: $1.89
  • Charged Off
    • F
      • Interest Rate: 22.99%
      • Term: 60
      • Outstanding Principal:  $24.77
      • Payment Received: $1.41
    • F
      • Interest Rate: 21.99%
      • Term: 60
      • Outstanding Principal:  $24.77
      • Payment Received: $0.80
    • B
      • Interest Rate: 11.53%
      • Term: 36
      • Outstanding Principal:  $24.42
      • Payment Received: $0.81

My Opinion of Lending Club 7 Month Performance

Over 7 months, a total of 7 notes are late or charged off. That means I'm losing a $25 note every month. To me, this is a higher than expected rate. My hope at checking in around the 1 year mark is that I don't lose a total of 12 notes. Otherwise, I most of the notes I've purchased won't be fully paid. Most of the notes that had problems were D, E, and F quality notes. Only a single B note had problems.

 

I took $2500 and invested in with Lending Club with various micro-loans ($25) from 5% to 20% over duration of 36 to 60 months. Let's see how they perform!
  1. The Start of a $1500 Lending Club Experiment
  2. 7 Months Into Lending Club Review
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