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How do I start investing? What’s the process?
1. Choose your account type. You can open an account online or by phone. We offer a broad selection of investing accounts and retirement accounts to meet your specific financial goals. For more information about these options, please call Investor Services at 1-888-596-3159.
2. Build your...
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| 22 Feb, 2012 | |
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What is the default rate on Lending Club loans?
The overall annualized default rate since our inception in 2007 has been below 3%. Our stated returns to investors is measured after taking into account that default rate. Our default rate remains low because we are very diligent in both our selection criteria and our collection activities....
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| 22 Feb, 2010 | |
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How are loans listed and approved for investing?
Borrowers who apply and meet our strict credit policy are listed on the site within 24 hours to receive funding. An additional manual review is performed and in some cases, Lending Club requires additional information. When all information is complete loans are marked...
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| 22 Feb, 2010 | |
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Is my investment liquid?
We offer a secondary market to provide liquidity. You can put some or all of your Notes up for sale on the Note Trading Platform operated by FOLIOfn, a registered broker-dealer member FINRA and SIPC. You can review the average time to liquidity on the secondary market here:...
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| 22 Feb, 2010 | |
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Is there a limit to how much I can invest?
There is no set limit, but you may not purchase notes in excess of 10% of your net worth (exclusive of the value of your home, home furnishings and automobile).
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| 11 Feb, 2010 | |
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Do I pay taxes on my Lending Club earnings?
If your earnings (as computed in accordance with IRS rules) reach certain thresholds established by the IRS, Lending Club will provide you with one or more IRS Forms 1099 each year and also submit the Form to the IRS. In general, an IRS Form 1099-INT is issued with respect to Notes issued prior to...
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| 22 Feb, 2010 | |
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What are the terms of the loans?
The loans have either 3-year or 5-year terms and are fully amortized over 36 or 60 monthly payments, respectively (each payment includes both interest and principal). For example, if a borrower was offered a $5,000 loan at an interest rate of 6.03% with a 1.11% origination fee of $55.50, he...
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| 20 Sep, 2011 | |
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Is my money insured?
Your Lending Club account cash balance is covered by FDIC pass-through insurance, subject to any applicable limits. Lending Club holds these funds at Wells Fargo Bank. The Notes you invest in are not covered by FDIC insurance. Read about risks of investing.
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| 22 Feb, 2010 | |
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Who are the borrowers and what do they need the money for?
Borrowers are members who have demonstrated their ability to responsibly manage their personal finances, which earned them a high FICO score (average over 715), but who generally have yet to build up significant savings and assets. They usually do not have access to inexpensive sources of...
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| 11 May, 2010 | |
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What am I actually investing in?
You are investing in 3 or 5-year Notes that are fully-amortizing. Each Note represents a portion of a loan made to a borrower member, and gives you the right to receive payments under that loan as they are collected by Lending Club. Each monthly payment includes both principal and interest.
The...
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| 11 May, 2010 | |
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Am I “investing” or am I “lending?”
Technically, you are investing—because you are buying Notes.
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| 22 Feb, 2010 | |
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Why do borrowers with great credit need Lending Club?
Borrowers with great credit get a lower rate with Lending Club. Because we streamline traditional banking operations, we are able to pass on the savings to both investors and borrowers. Borrowers also like the convenience of an online, 24/7 service such as Lending Club.
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| 22 Feb, 2010 | |
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Do I need to keep investment tied for 5 years?
No. Turn your Notes into cash anytime: it takes less than 5 days to sell Notes on the secondary market. Lending Club investors can sell both 3-year and 5-year Notes on our Trading Platform, operated by FolioFN.
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| 11 May, 2010 | |
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Can I be both an investor and a borrower?
Yes, you can be both, either consecutively or concurrently. Since your borrower and investor accounts are considered separate, you will need to use a different email address for each account you open. And for the protection of your account, you will need to go through the verification and...
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| 11 Feb, 2010 | |
