Lending Club investing review is a state-of-the-art peer-to-peer lending app, loan provider and, investment portal application. With the help of this app, any professional investor can diversify their range to include consumer credits and earn higher levels of profit. It also provides access to a plethora of low rate personal, business, and healthcare loans. Lending Club can be considered as an end to end solution provider for financial missions related to loans and investments and also a parallel source of fixed income.
The primary usage of Lending Club can be divided into two parts – acquiring loans and investing. The loans provided by Lending Club are low interest based and can be used to pay off any debt. All loans are given based on the user’s credit score and not against any collateral.
The investment opportunities presented by Lending Club are based on consumer credits, thereby providing a much higher amount of return. These investments contain lesser risk and allow you to diversify your portfolio.
Any user can open a Lending Club account and link it with their primary bank account and enjoy these benefits.
Lending Club Review Snapshot
Contents
Lending Club Pros
- Great loan offers
- Low and fixed interest rate
- Investment diversification opportunity
- Higher return capability
- Investment risk management
- Automated investment options
- Credit score calculation
- Easy account opening
Lending Club Cons
- Maximum loan limit $40,000
- Investment notes are not FDIC insured
Investment Capabilities with Lending Club Investment Strategies
Individual investors usually invest in corporations and businesses. Not only are these investments low profit generating by they usually come with a high fee and pose market risks. What Lending Club allows you to do is invest in consumer credits which basically means that you get to invest in people instead of corporations. The reason why Lending Club is to be considered as a potential game-changer for any investor is due to the fact that the returns from consumer credit investments are much more competitive. The fact that this allows access to a whole new section of investment assets is reason enough to give Lending Club a run.
But one must also understand that investing in consumer credit has existed within the investment sphere. However, such investments are mostly made by large corporations, business institutions, and banks. These investments are more robust and contain high chances of return since even if one of the loan borrowers fails to repay their loan, most others surely will, thereby allowing the total chance of positive returns to be much higher.
If you were to invest in consumer credits through Lending Club, you will receive payments on both, principal of the loan as well as the interest it acquires. This model is opposed to the typical bond type investments where the profit is earned only based on the interest and the principal is returned as a whole upon maturity. This potential of allowing diversity to seep into your investment modules can help you achieve a much higher level of returns on investments that can be as low as $25.
Another huge benefit that investment diversification allows for is risk management. We all know how volatile the corporate investor marker is. Many times investors end up losing large sums of money, and this pushes newbie investors to not invest in large amounts. However, since Lending Club allows you to invest in over hundreds of consumer credits you can rest assured that these loans will surely be paid back and thus your profits will be secured.
If you are thinking in practical terms consider this: You invest $2000 in a company, it performs poorly in the first quarter but picks up business pace in the second, and thus your returns from the investment are quite low although you don’t miss the profits entirely. Now with Lending Club, you invest the same $2000 in over 80 consumer credits, and 10 of them serve you poorly. But in this scenario, you will be earning full returns from 70 consumer credits and thus your total return amount will be much higher than the first scenario.
Added to all this is another great feature which allows Lending Club to automatically invest on your behalf. You can enter your investment preferences and the preferred amount from your Lending Club account will directly be invested in the most potential consumer credits available. This feature is of great help to newbie investors who are not always the best equipped to decide the return capabilities of each investment. For professional investors, you can always search through the most potent investment capabilities yourself and diversify your investor portfolio as per your requirements.
Borrowing Loans from Lending Club
Lending Club provides access to some of the best loan rates in the market and also allows for various kinds of personal and business loans. You get to make the payments automatically from your bank account since you can integrate the account with the Lending Club app, and thus not have to face any middleman platform hassles. You simply state your details, choose your loan, and enjoy the low fixed rates that Lending Club provides you with.
Here are some of the loan categories that Lending Club provides
Credit Card Loans
Repaying your credit card dues can be a hassle sometimes and this is where the credit card companies make the most amount of profit by charging sky-high interest rates. But Lending Club will provide you a loan with a much lower interest rate that you can use to pay off your credit card bill. You can choose a repayment term as long as 60 months so that you don’t feel the debt pressure at all times. And knowing that the interest rate is fixed also helps not incur a huge amount of extra debt on your loan.
Balance Transfer Loans
If you need to transfer the balance to a creditor most of the times it is going to cost, you quite a bit of transfer fee. And if you are primarily a balance transfer-based customer then this fee can even go up to $1000 in a year. With the help of Lending Club, you can directly send the required amount to an investor and not have to pay any transfer fee at all. So, you are saving both time and money with the help of this app. What’s even better is that since you are not drawing an extra loan from the bank and yet paying your creditor, your credit score is sure to go up.
Debt Consolidation Loans
If you bring all your debts together into one account and pay them off simultaneously then you can enjoy a singular low fixed rate that Lending Club provides you instead of having to pay multiple interests on the various debts. Using Lending Club is a much better option to repay your loans than using a credit card due to the huge difference in the interest rates.
Home Improvement Loans
Whether you need to repair your house, or you want to upgrade it, Lending Club is an amazing alternative to a bank loan against the value of your property. Not only will the loan provided to you by Lending Club be no-collateral based, but you will also be free to use the loan as per your wishes. Applying for a loan based on your credit score is always the more preferred option.
Lending Club App Review Summary
Lending Club is probably the best available option if you are looking for quick and low-interest loans and also enjoy investment profits. The two primary things to keep in mind here are that the loan capability of Lending Club is $40,000 maximum and the investment capabilities are mostly consumer credit based.
Lending Club Review 2019 FAQs
How can I diversify my investment capability with Lending Club?
With the help of the Lending Club app, you can invest in consumer credit and therefore ensure that your investment opportunities are diversified beyond the usual corporation-based investments. This also allows for greater risk management and higher return capabilities.
How does Lending Club decide the best investment opportunities?
You can enter your personal details such as investment preferences and investment amount in the app and all investment opportunities will be presented based on these details. So, if you are to allow Lending Club complete control over your investment plans you can rest assured that it will surely yield high returns.
What are the loan options available from Lending Club?
Lending Club provides you access to a plethora of loans such as credit card repayment loans, debt consolidation loans, balance transfer loans, business loans, home improvement loans, etc. All Lending Club loans are credit based and also contain low fixed interest rates.
Why should I pay my credit card debt with a loan from Lending Club?
The loan that Lending Club will provide you with will hold an interest rate that is much lower than your credit card interest rate. So, while you repay the loan you will incur much less in terms of interest and also have a better credit score.
Why should I invest in consumer credit?
Consumer credit-based investments are returned depending on the successful repayment of the loan. Since most consumers are likely to pay back their loans, your chances of higher returns are secured through this form of investment.