My recent article on peer to peer lending mentions that Lending Club is quickly approaching a milestone — they’re about to obtain their 25,000th registered investor! And to mark this momentous occasion, Lending Club is holding a promotion to give away $2,500 to a lucky investor, who’ll happen to be that 25,000th member. So how does this work?
$2,500 Lending Club Cash Giveaway Details
To join the giveaway, you should be looking to invest in notes through the Lending Club network. If you’re not familiar with this process, you can check out my Lending Club review for more information. The contest itself is simple — here’s all you need to do:
1. Qualify for the cash giveaway by signing up for a free Lending Club investing account. You will need to complete the full registration process which includes creating your password, verifying and confirming your identity and entering your bank information. You’ll need to link your bank account to your Lending Club account to facilitate transactions.
2. There’s no need to purchase anything.
3. The winner will be revealed after October 31.
Lending Club Investor Requirements
So what can you expect from your Lending Club investments? Here are some more tidbits about becoming a lender at this network:
1. The annual rate of return for investors is over 9.6%. That’s a pretty sweet return relative to a lot of investments we’re seeing today. Just take a look at this chart!
2. Lending default rates are quite low. Check this graphic for historical default rates at Lending Club — as you can see Grade A loans (the most conservative loans) have an average 12 month default rate of only 0.47%. In fact lately, they’ve reported that there have been no defaults for the most conservative investments.
3. To invest, you can make deposits by using Paypal, ACH, checks or via wire.
4. Only investors from certain states can participate at this time. Qualified states: CA, CO, CT, DE, FL, GA, HA, ID, IL, LA, ME, MN, MS, MO, NH, NV ,RI, NY, SC, SD, UT, VA, WA, WI, WV and WY.
5. The minimum investment is only $25.
6. Your investments are in fixed income notes with 3 year terms.
7. There’s a low service charge of 1% taken from earnings you receive from borrowers, but your annual returns will be impacted by less than this amount based on the way Lending Club makes calculations.
8. Loans can be traded (bought and sold) via a Note Trading Platform that’s operated under FOLIOfn. There are some limitations as to who can use this trading platform and there’s a 1% trading cost for doing trades.
So if you’re interested, you can become a Lending Club member here. Note that all investments always carry risks, so make sure you review as much information about this as you can before you delve in!
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- Earn top returns: FNBO Direct [1.90%], HSBC Direct [1.65%], WTDirect [1.76%], E*Trade Bank [0.95%], ING Direct [.25% to 1.65%]
- Cash bonus: Discover More [$50], American Express [$25], Lending Club [$25]
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{ 4 comments… read them below or add one }
I’ll try anything which doesn’t need purchasing.
Good post and people should click on your link to Lending Club.
For those who want to learn more, I recently interviewed Lending Club’s CEO Renaud Laplanche to answer a bunch of questions that most people have about Lending Club – you can listen to that interview here.
I HATE Lending Club right now…it won’t let us Maryland’ers register. Right as I finally decided to give it a shot too. I’ll get you some day LC, just you wait!
Sorry J. Money… We’re getting rich while you aren’t. Too bad, so sad….! Okay, just kidding you of course
! Hope they open this up to the whole country soon. It’s a great investment!
By the way, the reason why certain states aren’t able to participate in Lending Club yet — apparently it’s to do with Lending Club experiencing bureaucracy with passing certain financial regulations in these states. It’s nothing inherent about the business of course, but rather just how slow people (the powers that be) are about reviewing these new businesses that are wanting to operate in these states.