Monday, March 28, 2011

First Post

My investing methods on Lending Club:

I joined Lending Club in November of 2009.  At first I started slowly, adding a $100 dollars at a time. As a former member of Prosper, I believe in peer-to-peer lending.  Ordinary folks have a lot of cash lying idle, and why shouldn't they be able to lend it.  I believe it is a great model.

In the beginning, I stuck with the higher quality grades.  However, the more I looked the statistics page on Lending Club, the more I realized, that may not be the best approach.  See the page here:

The returns on the lower grade loans are actually higher.  The "A" grade is actually the lowest.  "E" and "F" are the highest.

What are your thoughts?

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