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Lending Club screening & investing criteria

In my post “A bitter return to Lending Club” I wrote that I would be returning to investing with Lending Club but this time I would be very conservative in selecting notes to invest in.

Originally, I wanted to invest only a very small amount of money ($25 dollars a month) but later on, I changed my mind a bit and decided to invest more ($100 dollars a month). In this strategy update I would like to write down my strategy for investing in Lending Club:

Here are my Lending Club screening & investing criteria:

1) deposit $100 per month

2) invest only $25 per note

3) invest only in “A” and “B” notes

4) invest only in 36 months notes

5) invest in notes with loan payment to income less than 10%

6) invest in notes with employment more than 2 years

7) invest in notes with debt-to-income less than 25%

8) invest in notes with no public records

9) invest in notes with credit score more than 700

10) invest in notes asking less than $10,000 dollars

11) if available cash is sitting in the account screen loans daily as long as all free cash is invested.

12) if no loans meeting criteria show on the list, skip that screen and screen next day.

13) reinvest all interest to new loans.


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