Lending Club is a popular topic on r/PF, mainly because people don't search before they post. The punchline is this:

  • A lot of people who put in $1000+ are seeing pretty good returns (8% to 12%)
  • A lot of people have seen much worse returns, sometimes even negative if they didn't buy enough separate notes
  • Overall, LC does not appear to outperform risk-adjusted returns of index-investing
  • LC feels different than index-investing, so some people enjoy it anyway

There are far too many posts in r/PF to link. Here's the search to get you started, though:

http://www.reddit.com/r/personalfinance/search?q=Lending+Club&restrict_sr=on

Not to mention many similar posts on r/investing.

changed March 13, 2013 delete history edit