I saw the lendingclub.com site a few years ago when it had much less experience and growth than today. I thought it might be very risky as I did not look at the details too closely. This time I looked at the details and saw that you can invest as little as $25 per loan, select the grades of loans you will tolerate, and select the mix of the loans which are suggested to you, and even select individual loans and amounts if you think you can know and judge better then the lendingclub.com itself (I think this is a mistake for small ticket investors and those with less then a few years experience on the site but there are many people that want to enjoy this level of control).
I thought I would like to have a PRIME account ($5000.00 and higher initial investment) initially in order to see how things went from a wider perspective (can have up to 200 different loans out with a PRIME account (5000/200=25)). However, after browsing a lot more and checking things I have decided to start with $250 which is the minimum quick transfer that can be done. I transferred and cleared out my Paypal account balance plus a few dollars from the backup source and away we go:
I decided I do not want to fund any accounts that have a grade of D or worse. My reason is based on my view of credit and the industry as a whole. I do not think the credit companies should cater to individuals who show a need to correct their spending habits and credit habits until they have proven themselves. If we loan to more worthy folk it will help more and hurt less (I hope). Otherwise we are just greedily hoping that a higher percentage of a more risky mix actually pays their bills without trying to pull them up. Another thing if a bank sees what the lendingclub.com considers an A through C rating and will not make a loan to them or one at a reasonable rate then this is the business I want my investment to compete for!
So I transferred $250 and looked at the grades and selected only A, B and C grades and did an update. Then I went to the more options and used the slider to target around 10.01% return as that had the most diversified mix for my taste (one or so in A, some in B and some in C and 10 investments of $25 each). Then I placed that order.
After looking them over I notice many are not approved and many that are not approved have funds assigned to them. I assume if they do not approve the funds will become available again for reinvestment. I also see that many that have been approved have time left and none of them have been funded 100% yet. I will leave this post here so I can gather more useful information.