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COVID-19 Investor Special

3 min read
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The COVID-19 virus has caused unprecedented volatility as the markets continue to be affected by the human health and economic toll of the pandemic.

Unprecedented Times Call For a Closer Eye on Your Investments

During times of market volatility, it’s particularly important to carefully consider all risk factors and features of an investment product before investing, including how the investment might be affected by market conditions. It’s also important to remember that historical returns do not necessarily reflect the returns you’ll see during a downturn period. If you look at historical market performance, it’s easy to see periods of volatility affected performance in the short term.

It’s No Different at LendingClub, Where Historical Platform Returns are Not a Guarantee of Current or Future Performance

We are taking deliberate measures on our platform to do right by our borrowers and to aim to protect our investors’ returns. These measures include tightening credit to reduce exposure to riskier borrower segments. However, as with any investment, LendingClub’s past platform performance is no guarantee that it will perform the same way now (during this time of uncertainty) or in the future.

Factors contributing to the current market volatility are all-time high unemployment claims, an unprecedented federal stimulus package—both in size and speed to distribution—and the uncertainty about how long the COVID-19 shelter-in-place orders will last. 

What Can You Do to Help Protect Your Investment? Diversify Your LendingClub Note Portfolio

Spreading your investment dollars across multiple asset classes and securities within those asset classes could reduce the impact if one security experiences significant losses. The same principle applies to LendingClub Notes because each Note has exposure to the credit risk of a corresponding borrower. If the borrower defaults and the loan charges off, the Noteholder will likely suffer a loss. Diversifying your investment across multiple Notes takes some risk off the table, because if one borrower doesn't pay back their loan, that investment loss may be offset by other borrowers that do.

How Notes Fit in to the Macroeconomic Shifts Caused by COVID-19

With the economy shifting in nearly every way due to the COVID-19 shelter in place orders, you should expect that most, if not all, assets may be affected. Since we launched our platform and LendingClub, investors have considered Notes and/or consumer credit to be a portfolio diversifier, often thought of as a fixed income alternative. With market volatility happening, it’s a good idea to check in with your financial advisor or trusted investment professional to make sure your total portfolio, including where LendingClub Notes fit in, is allocated to suit your unique financial needs and goals. 

Looking to cut costs on expenses or earn more income? We may be able to help

In times of uncertainty, we know that every dollar coming in or going out matters. In addition to investing, expenses and income are important pieces of your personal financial picture. With millions of Americans now looking for ways to cut costs on expenses and/or find new income streams—we’re excited to offer our members two new services that may help improve their financial situation: Trim and Steady*.

Trim: An Assistant That May Help You Cut Costs on Expenses


Trim is an online service that acts as your personal financial assistant to identify where you can cut costs on expenses. For example, Trim can help to negotiate your cable, internet, phone, and medical bills. You can sign-up for free and start your potential cost cutting today.

Learn More About Trim

Steady: Work, Earn & Build Your Income

Steady is an online service that can help you find your next full time, remote, part-time, or gig job. Discover new work opportunities and unlock new sources of potential income through Steady. Consider setting up your free account today to start earning.

Learn More About Steady

*LendingClub is compensated for referrals to Trim and may receive compensation from Steady for accounts created through this partnership. By clicking one or both links, users are leaving LendingClub’s website. LendingClub is not responsible for the content of Trim or Steady’s website(s). LendingClub does not represent either the third party or the member if the two enter into a transaction. Privacy and security policies of the alternate website(s) may differ from those practiced by LendingClub.

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LendingClub Bank and its affiliates (collectively, "LendingClub") do not offer legal, financial, or other professional advice. The content on this page is for informational or advertising purposes only and is not a substitute for individualized professional advice. LendingClub is not affiliated with or making any representation as to the company(ies), services, and/or products referenced. LendingClub is not responsible for the content of third-party website(s), and links to those sites should not be viewed as an endorsement. By clicking links to third-party website(s), users are leaving LendingClub’s website. LendingClub does not represent any third party, including any website user, who enters into a transaction as a result of visiting a third-party website. Privacy and security policies of third-party websites may differ from those of the LendingClub website.

Savings are not guaranteed and depend upon various factors, including but not limited to interest rates, fees, and loan term length.

A representative example of payment terms for a Personal Loan is as follows: a borrower receives a loan of $19,584 for a term of 36 months, with an interest rate of 10.29% and a 6.00% origination fee of $1,190 for an APR of 14.60%. In this example, the borrower will receive $18,663 and will make 36 monthly payments of $643. Loan amounts range from $1,000 to $40,000 and loan term lengths range from 24 months to 60 months. Some amounts, rates, and term lengths may be unavailable in certain states.

For Personal Loans, APR ranges from 9.57% to 35.99% and origination fee ranges from 3.00% to 8.00% of the loan amount. APRs and origination fees are determined at the time of application. Lowest APR is available to borrowers with excellent credit. Advertised rates and fees are valid as of July 11, 2024 and are subject to change without notice.

Checking a rate through us generates a soft credit inquiry on a person’s credit report, which is visible only to that person. A hard credit inquiry, which is visible to that person and others, and which may affect that person’s credit score, only appears on the person’s credit report if and when a loan is issued to the person. Credit eligibility is not guaranteed. APR and other credit terms depend upon credit score and other key financing characteristics, including but not limited to the amount financed, loan term length, and credit usage and history.  

Unless otherwise specified, all credit and deposit products are provided by LendingClub Bank, N.A., Member FDIC, Equal Housing Lender (“LendingClub Bank”), a wholly-owned subsidiary of LendingClub Corporation, NMLS ID 167439. Credit products are subject to credit approval and may be subject to sufficient investor commitment. ​Deposit accounts are subject to approval. Only deposit products are FDIC insured.

“LendingClub” and the “LC” symbol are trademarks of LendingClub Bank.

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