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:
https://www.lendingclub.com/public/statistics.action
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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