Is Lending Club legit? Yes. I happen to know that 170 people per month in the United States wonder about this very topic. I have to ask myself – who are these people that are wondering whether or not Lending Club is legit. They have to be one of two types of people. Either people who are looking to borrow money via personal loans or people who are looking to invest money. It is perfectly reasonable and rationale that they are skeptical. Borrowing or investing money 100% online in a peer to peer format seems a little bit sketchy. Is peer to peer lending safe? Is it safe to borrow money online from a P2P site like Lending Club? How much risk is involved if I am considering investing on a site like Lending Club? All of these are fair questions and I will do my best to point you in the direction to answer them and prove that Lending Club is in fact 100% legit.
As an investor at Lending Club, and a resident of the great state of Michigan, I currently have only one of two options available to me for how I am able to obtain notes. I must purchase notes via the note trading platform by Foliofn, which is the secondary market used by Lending Club, for trading peer to peer (P2P) notes. The other option is to fund notes directly through the more common retail platform, which is not currently available to investors in all 50 states. The difference between these two options is basically this – the retail platform is for notes that are not yet fully funded or acitve and the note trading platform consists of notes (or loans) that already exist and are active. After reading through several blog posts and blog comments, I am finding that a lot of people prefer the retail platform and feel that the secondary note trading platform by Foliofn is inferior. I am the exact opposite. Although I am not able, or even allowed (currently), to take part in the retail platform – I actually think I like the note trading platform better. Only three months in to my Lending Club investing experiment, and I’ve been able to maintain a Net Annualized Return of over 22%!