After the SEC shut down other P2P lenders, the LendingClub is probably one of the most reputable credit organizations currently operating. But many changes have taken place. For example, instead of directing “lending” to private borrowers, lenders are now “investing” in the notes issued by LendingClub. Certain restrictions have been added but there are benefits as well because the notes can now be traded in the secondary market.
The interest rates charged to borrowers can range from 7.37% to 20.11% depending on their credit grade. There is also a 0.6% late fee. Across all loans, the default rate is less than 3%. Bidding does not exist here, investors interested in lending see the rate, the credit grade given, and then decide whether they want to fund it. The loans you take can now be sold on the secondary market so it is possible to gain liquidity if you need it. Take note that there are certain eligibility requirements that must be met such as the income and net worth requirement.
LendingClub currently gives a $25 bonus to new lenders. After you get approved, the $25 bonus will appear on your account balance.
