I started my LendingClub experiment in February with an IRA account. I also took advantage of their promotion of receiving $25 bonus by investing $5,000-$9,999. I shouldn’t complain about a free $25, however, just a couple weeks later I received an email with a better promotion – $50 for the same amount of investment fund. Now I have a reason to be just a little unhappy. 😉
So how’s my experiment going so far?
My notes summary
Right now in my account, I have a total of 228 notes issued and current, and one note waiting to be issued. For all the notes that I own, everything is looking fine so far – none in grace period or late. A few weeks ago, one note was late for 16-30 days but it was paid eventually. Hopefully that was just a negligence of that borrower and it won’t happen again.
See my note summary screen shot below.
You never know when there’s newly investable money in your account, for example, when a note is paid in full ahead of time, or when you have accured enough interest. And when that happens you’ll want to have that new money invested. One nice feature that LendingClub offers is Automated Investing – you can set up your criteria and it’ll automatically invest based on your input. It saves a lot of your time – without it, you’d have to constantly log in to your account, check the status of your account, browse notes, and order a note or two.
I’ve changed my auto investing criteria a few times and I don’t even remember what was my latest update. Probably something like 730+ credit score, with keyword “credit”, or “consolidation”. Anyway it’s been working fine since I’ve been receiving automated investing confirmation emails from LendingClub every now and then.
My ANAR (Adjusted Net Annualized Return)
The most important parameter of my LendingClub experiment is, of course, my investment return rate.
LendingClub provides ANAR(Adjusted Net Annualized Return) in your account, which is their estimated return rate based on your account portfolio considering fees and possible future losses if there’s any past due notes in your account.
So far I’m doing great! My ANAR is 17.18% with an average portfolio age of 2.1 months. I know that notes are more likely to go bad when they are older but for now I have nothing to worry about.
LendingClub also provides a neat chart showing historical data from accounts with similar weighted average to mine so that I could see where my ANAR stands (see chart below). The chart starts at 3 months, with a continuous decline n the first 12 months and then it levels off at 5-10%. My account’s weighted average age is only 2.1 months which isn’t even included in the chart, but judging from the chart trend, it looks like I’m in a good position.
I’ll definitely check my account ANAR again in a month.
A better sign-up bonus
Previously as I’ve mentioned in this post, the sign-on promotion that my account offered and a better offer that I could find elsewhere was either $75 or $100, now there’s a much better deal – $150 when you sign up!
If you are interested, please sign up through this link to get your $150 bonus. With the increased bonus, now it would be a good time to join LendingClub.
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