Finally! I have been really anxious to try out Lending Club. I received an email near the end of July that Lending Club was now available in Texas. Previously you were only allowed to trade notes on the third party Folio Investing site. The filters there weren’t very good at all and the notes were picked through and marked up so I wasn’t interested in it.
I decided I’m going to make a small investment ($2k or so) and start adding $250/week to the account to start with.
I’m aiming for a total return over 10%.
Here’s my current mix of notes I’m shooting for with the automated investing option:
I cherry picked some notes to start with and now am going to let the automated investing take control. So why did I pick mostly E, F and G notes? Well, they have the highest average returns. Sure the charge off rate is higher but the interest rates more than make up for that. I’m going to report on this before the end of the year and see where I’m at.
I’ve also played around on the NSR site for back testing filters. The site is here if you want to check it out: https://www.nsrplatform.com/#!/stats/lendingclub
Currently I’m still tweaking the filters but this is what I’m starting with:
Home Ownership: Own or Mortgage
Inquiries in last 6 months: 0
Delinquencies last two years: 0
State: Exclude CA, FL, NV, AZ
Minimum length of employment: 5 years
What do you guys think? Do you have much experience with Lending Club. I’d love to hear other people’s experiences and sucess with filters.