Lending Club Review

Edit 9/7/09: Use this link to receive $25 free from Lending Club when you sign up.

Microloans are all the rage now.  With my “high-yield” savings account getting around 1.4% interest as of date, I needed something with a little more oomph.  I had some success with Prosper (despite 2 of my 12 notes defaulting), and shortly after Prosper entered its “quiet period” I got into Lending Club.

The interface of Lending Club is clean, and because you can invest as little as $25 in a loan, they make it very easy to help hedge your risk by diversifying into many different small loans.  I only put a little money in to experiment, but so far it has resulted in impressive results:

Here are the notes I have invested in, with some details obscured for privacy:

Transferring in funds in and out of Lending Club has proven to be relatively painless, and I plan to continue small investments to see how my strategy works.  No defaults as of yet, but it is still early.  My first defaults did not show up in Prosper for at least a few months.

Anyone else have any success stories with Micro Loan sites?

Edit 9/7/09: Use this link to receive $25 free from Lending Club when you sign up.