COVID-19 Investor Special

3 min read

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.

You May Also Like

Related Resource Center
Increasingly, institutions—asset managers, pensions, and banks alike—are looking to whole loans available through the Lending Club platform
Nov 19, 2022
less than a minute read
person working on compound interest charts on laptop
If you're planning on consolidating debt or making a big purchase like buying a home or new car, chances are you'll need financing to help reach your goals. Understanding the true cost of a loan is key to getting the best deal possible—and most often that starts with shopping APRs and interest rates across different lenders.
Jul 15, 2024
6 min read
Woman in yellow shirt in coffee shop writing in notebook in front of laptop
Your credit score plays a key role in nearly every aspect of your financial life—from the rates you receive on loans to applying for utility services and cellphone plans. Given how often those numbers will come into play, it is a smart move to aim for the best scores you can.
Jul 13, 2024
9 min read
What Affects Your Credit Scores?
To open a business bank account, you’ll need to choose a bank, gather documentation to apply, and have funds on hand for an initial deposit.
Jul 9, 2024
5 min read
How to Open a Business Bank Account
Identity theft happens when your personal information is stolen and used without your permission. Understanding the warning signs, knowing how to protect your information, and what to do if your identity is stolen can help keep your identity safe and recover faster. 
Jul 6, 2024
9 min read
Preventing Identity Theft
Related Impact
From groceries and diapers to Halloween costumes for pets, nearly 60% of American consumers prefer to shop online for everyday items that make life more convenient, comfortable, and enjoyable. And with rising prices showing no signs of stopping anytime soon, we’re pleased to introduce StackitTM from LendingClub Bank—a new browser extension that automatically finds and rewards eligible members with coupons and cash back for extra savings at more than 15,000 favorite online retailers.
Nov 13, 2022
2 min read
blog header stackit 765x430 v1-1
Even in today’s low-yield, high-inflation environment, it’s essential to keep a certain amount of money in an easy-to-access checking or savings account for things like daily household and emergency expenses, or to meet short-term financial goals.
Oct 2, 2022
5 min read
LendingClub Rewards Checking Nationally Certified as Trusted, Afforda
Since 2007, LendingClub has been on a mission to deliver a world-class experience to all our members. This month we took a moment to reflect on the more than four million members who have chosen LendingClub as their partner to help them reach their financial goals.
Apr 19, 2022
2 min read
Illustration of large number 4 and letter M made up of colorful, tiny illustrations of ethnically diverse people
In March 2022, we hosted our first quarterly webinar where we celebrated our one-year anniversary as a digital marketplace bank. 
Mar 6, 2022
less than a minute read
LendingClub completed the acquisition of Radius Bank in February 2021. At that time, in addition to the direct-to-consumer deposit business, we inherited a fintech partner program, and several lending businesses. As we reach the one-year anniversary of the acquisition, and in conjunction with the conclusion of a strategic review of our business operations, we have made the decision to discontinue certain businesses that don’t fit our mission.  
Jan 2, 2022
2 min read
Man in blue button up shirt and glasses smiling
Related FAQ's
We offer several ways for you to make your monthly auto loan payment, so you can choose the method that works best for you. A statement will be mailed to you every month that shows the payment amount and due date.
Nov 29, 2023
less than a minute read
LendingClub provides a year-end statement that summarizes your account activity, including how much interest you’ve earned and information regarding Notes tied to loans that have been charged off.
Jun 7, 2023
less than a minute read
Adding creditors to your balance transfer loan is easy.
Jun 7, 2023
3 min read
To qualify for a lending product with LendingClub Bank, you must...
Jun 7, 2023
less than a minute read
Applying for a lending product is fast, easy, and confidential.
Jun 7, 2023
less than a minute read
Related Glossary
{noun} A type of credit that allows the borrower to make charges and payments against a set borrowing limit, paying interest only on outstanding balances.
Sep 6, 2023
4 min read
{noun} The total annual cost to borrow money, including fees, expressed as a percentage.
Mar 21, 2023
3 min read
{noun} The amount of unpaid interest that has accumulated as of a specific date, either on a loan or an interest-bearing account or investment. 
Mar 21, 2023
4 min read
A debt that is written off as a loss because the financial institution or creditor believes it is no longer collectible due to a substantial period of nonpayment.
Feb 7, 2023
3 min read
{noun} An interest rate that remains the same for a set time, usually for the life of the loan.
Feb 4, 2023
3 min read

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.

© 2024 LendingClub Bank. All rights reserved.