LendingClub.com Review – Is it a scam?

Lending Club is a financial community website established by CEO Renaud Laplanche in 2007. The website serves as a hub for both investors and lenders.

The site claims that anyone who wishes to invest can easily do so by opening an account in the site and immediately start building their portfolio. Lenders, on the other hand, can borrow money simply by accomplishing a loan application form. They will receive a rate quote right after filling out the form.

How LendingClub.com works

Lending Club claims to be better than banks when it comes to money lending. According to them, banks offer higher rates because they have these extraneous fees such as infrastructure and administrative fees. Since they don’t have these ones, they claim to provide better rates to lenders.

Investors, on the other hand, benefit from these lenders. Lending Club boasts that within 4 years of their operation, inventors have already obtained an annual return of over 9.5%.

More about LendingClub.com

Interested investors should prepare at least $5,000 before they can start building their portfolio in Lending Club.

While Lending Club appears to be a suitable place to loan money, money lenders shouldn’t set their hopes too high as this site only approves the most creditworthy borrowers. And to date, that’s only less than 10% of the loan applications received.

Final thoughts on LendingClub.com

Investing is almost synonymous with risk. Lending Club can be a great hub for investing your money but you have to be careful in choosing your portfolio. Remember, a greater return means bigger risk.

As for lenders, Lending Club may offer better rates but it’s still not the best alternative for banks.

Please leave your comments or your experience with LendingClub.com below; it helps others.

If you’re interested in learning how regular everyday people are making money from YouTube please visit the Work From Home page. It’s easy and it’s completely free!