3 ms·
Ask HN: Does Anyone Invest in Lending Club or Prosper?
I'm looking to diversify so that I'm not completely in stocks. I'm looking to hear about other people's experiences and what kind of returns they're getting through these peer to peer lending sites.
I've done some research online but most of the review sites seem to be blog posts explaining the pros and cons of each marketplace. I'm looking for reviews from people that have actually invested.
- PaulHoule 10y agoI invested in Lending Club in a time when I had a big income. I drew it down in a time when I was working on my own business. I had them taking a few hundred a week out of my bank account automatically and then I would log in to buy notes and reinvest the payments. I got a roughly 7% rate of return when defaults were factored in. I never put a huge amount of effort into hand-picking notes, overall the experience has been great. I've had some fears that so far have been more hypothetical than real: (i) if they get more focused on institutional investors they will be less focused on me, (ii) if they get bigger they might relax their standards, (iii) if the economy as a whole goes south, defaults could go up.
- sharemywin 10y agoIf you look at prospers default rate it was very high during the crash, but they blame it on underwriting. I think you need to take into account that when the economy crashes a lot of prospers customers, IMHO, will get hit first.