This is the post I’ve been referring to for the past couple months, and I’ve finally gotten around to writing it. If you’ve read my income reports, you know I talk about Lending Club on a monthly basis. The reason is simple: This is really my only “true” source of passive income online. I’ve used Lending Club for over 3 years now and am happy to be an affiliate as well.
What is Lending Club? It’s basically a platform that allows individuals to loan money to other individuals (also known as “peer-to-peer lending”), with Lending Club as the middle man, making sure that your risk is properly identified before you make an investment. They do everything from running a credit check on the borrower to verifying the borrower’s annual income, to make sure it’s relatively safe for you to loan them the money.
Of course, there is some risk involved, but you’re compensated for that risk by earning a nice interest rate on the loan (investment). If you read my income reports, you’ll see I currently earn around a 6% annualized rate of return on my investment, and the average rate of all Lending Club investors is around 9%. There’s a lot more to it, which is why I decided to write this guide and show you my strategy when investing on Lending Club.