If you ever heard about Lending Club, seen some ads about investing with Lending Club and making 9% or more, you probably wonder whether it works or it is safe investing. You probable tried searching on Internet to find out what others have to say about this type of investing.

Are you confused about the amount of articles?

Well I have been investing with Lending Club for about three years right now. During this period I read many articles from the Internet seeking what are experiences of other people who invest with Lending Club. There are plenty of possible articles on this matter!

The results of those articles articles may be very confusing and discouraging new investors. A lot of them basically claim that Lending Club investment is not that bright and that excellent as it claims to be. Many said that their return was actually lower that claimed. Many pointed out that there is actually higher real default rate than the one claimed.

What I have found is that many investors who participated on their private “tests” of investing with Lending Club actually mistaken this type of investment with savings account. They put their money to work, invested a few thousands of dollar and then forgot about them. At the end of their three year period they provided the results which were mediocre.

Investing with Lending Club is not a savings account. It needs your attention. It needs your attention almost on daily basis (depends how large your portfolio is). It is almost similar to investing into stocks and you have to do your homework prior to investing into debt notes. Fortunately Lending Club provides you with great tools to do it. You can set your filters up to weed out notes with bad records on file (I wrote about my filters in this post, you can check it out). After investing your work doesn’t end. I review my portfolio almost on daily basis and always check the notes how they are performing.

If I spot notes which look to me problematic, or showing a potential for trouble, I sell them. No questions asked, no double guessing. There are tools and strategies which can help you to find such notes in your portfolio and you can get rid of them while it is possible. It is late to try getting rid of note which are already late. You have to do your homework constantly, the same way as with your stocks (if you invest into stocks).

You cannot stay passive. Only active investor, planting his portfolio diligently and weeding out all bad weed will be rewarded. I am trying to do my part and to this day my return is 12.71% and I had no defaulted note for the whole time investing with Lending Club although I am investing into A to E notes. So if you are OK to do some work don’t worry, go for it and you will be pleasantly surprised. If you need help, you can write me a note and I can help you to start.