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Old 01-10-2016, 07:16 PM
393 posts, read 264,446 times
Reputation: 535


Originally Posted by stevek64 View Post
Anyone have any first hand experience to share, or just general conversation on the topic of course, on investing in peer to peer lending for income?

An article that I think provides good oversight on the topic.

Why income investors should consider peer-to-peer lending - MarketWatch

I did a bit of research on the topic in the past but shied away because of the diversification aspect but this article mentions the Lending Club allows one to buy "notes" in increments as low as $25 to spread one's investment between many different portions of loans.
You can lose your investment much easier then if you were in CEF's, div paying stocks or something like that. You are basically loaning money to someone who may or may not be able to pay it back, intentionally or unintentionally.
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Old 01-10-2016, 07:32 PM
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Lending out one's hard earned money (or worse, one's retirement money) and lending it out to strangers sounds like a profoundly bad idea. Banks do it because they loan other people's money (yours and mine) to strangers, but they make darned sure that the collateral is more than the loan amount.
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Old 01-11-2016, 05:15 AM
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these are strangers that banks will not loan obviously since they have already demonstrated an inability to pay ,or a want to pay or both .
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Old Today, 06:32 PM
Location: Up North
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So I guess this isn't a great idea?
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Old Today, 06:41 PM
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A popular financial speaker commented that banks will lend money to a dead dog. So anyone who can't get a bank loan must be a truly bad credit risk.
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Old Today, 07:29 PM
Location: Tennessee
24,042 posts, read 17,897,365 times
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I used Lending Club for a personal loan years ago. The interest rate was much higher for a similar loan than what my local credit union would give me.

IMO, Lending Club is going to be used by people who either can't or don't want to entangle a high interest rate, high chance for default loan with their "main" creditors.
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