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Lending Club Update – March 2013

Written by Nickel - 4 Comments

Bank Deal: Earn 1.00% APY on an FDIC-insured savings account at Barclays.

Time for another Lending Club update… Our balance is now down below $500 and we should be completely cashed out within the next few months.

Last month our portfolio looked like this:

  • 110 loans were current
  • 295 loans had been paid off
  • 1 loans were currently 16-30 days late
  • 6 loans were currently 30-120 days late
  • 40 loans had defaulted and/or been charged off

with a net annualized return (NAR) of 6.7%.

As of now, our portfolio looks like this

  • 88 loans were current
  • 315 loans had been paid off
  • 2 loans were currently 16-30 days late
  • 7 loans were currently 30-120 days late
  • 40 loans had defaulted and/or been charged off

and a current NAR holding steady at 6.7%.

So the good news is that 20 more loans have been paid off with no more defaults. The bad new is that the sorta late note slipped into the really late category and two more notes moved into the sorta late category.

What about you? If you’ve been investing with Lending Club, how are things going? When reporting your results please be sure to give us an idea of how many notes you’re holding and how long you’ve been at it.

Published on March 27th, 2013 - 4 Comments
Filed under: Saving & Investing

About the author: is the founder and editor-in-chief of this site. He's a thirty-something family man who has been writing about personal finance since 2005, and guess what? He's on Twitter!

Comments (scroll down to add your own):

  1. After seeing the tax implications of P2P lending and the way that LendingClub is handling charge-offs vs. the OID statement, I would encourage everyone to stay away from P2P until the tax treatment is simplified and your gains/losses offset each other at the same tax rate.

    Comment by Anonymous — Mar 27th 2013 @ 3:01 pm
  2. I’ve been investing with Lending Club since 2009, and recently upped my investment by opening a Roth IRA with $10,000. I am bullish on peer-to-peer lending, and while there are some tax issues that need to be addressed as Don mentioned, overall I think it is a solid investment. With my taxable account, I have received a real return in excess of 10% since 2009, while investing in around 200 notes. I did a big sell-off last fall to transistion some money out of my taxable account, leaving me with around 50 notes remaining in my portfolio.

    I plan on continuing to invest money into peer-to-peer lending for the foreseeable future.

    Comment by Anonymous — Mar 29th 2013 @ 3:19 pm
  3. Hi FCN,

    My accounts are all quite young, so my returns are a bit premature. At the moment I’m holding at about 17% ROI overall across 3 accounts and 800+ notes, but I expect this to drop in the coming years. Like Writing2Reality, I’m bullish as well 🙂

    I’ll have a 2013 second quarter post on my returns this coming week.


    Comment by Anonymous — Mar 30th 2013 @ 8:25 pm
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    Comment by Anonymous — Apr 2nd 2013 @ 1:18 am

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