Should I invest in prosper or lending club or other?

[Vince-Investing]

I am new to this forum and to peer2peer lending. I have about $3,000 that I got as part of a recent legal settlement. I want to invest it and be creative. peer2peer lending companies like prosper, lending club, and upstart and other ones I have researched online all look like ver y safe ways to earn a good return. Can anyone suggest which one I should use as a new investor. Or should I spread it around like $1,000 each on 3 different systems? Diversification is key right?

Thanks
Vince

[sean bash]

I am new to this forum and to peer2peer lending. I have about $3,000 that I got as part of a recent legal settlement. I want to invest it and be creative. peer2peer lending companies like prosper, lending club, and upstart and other ones I have researched online all look like ver y safe ways to earn a good return. Can anyone suggest which one I should use as a new investor. Or should I spread it around like $1,000 each on 3 different systems? Diversification is key right?

Thanks
Vince

To be blunt I recall some of these platforms suggesting to deposit a minimum of $5,000 just to get enough notes to be diversified. With $3,000 you should probably just stick it in one place. I haven't tried upstart but I have tried Lending Club and Prosper. Lending Club's user interface is better and there's more notes to choose from. You mentioned that they looked very safe. They're not. Member Payment Dependent Notes are actually pretty exotic and risky in my opinion. Only invest the $3,000 if you can afford to lose it. If it's all you've got, you might want to put it in something else.

[Investment Capital 4 ISOs]

i would do neither I would in vest in MCA syndicated loans. With 3k though try lending club. If you had 50k you could invest in MCA via my company and receive a 12% preferred return. Welcome to the community btw.

[Vince-Investing]

i would do neither I would in vest in MCA syndicated loans. With 3k though try lending club. If you had 50k you could invest in MCA via my company and receive a 12% preferred return. Welcome to the community btw.

what does that mean to invest in "MCA" ? Sorry if I sound like a rookie. I am still learning about all these online lending investing opportunities.

[sean bash]

Investing in Merchant Cash Advances (MCAs) is really for sophisticated investors. It also requires a lot more than $3,000.

I would just give it a whirl with something relatively simple like Lending Club so long as you understand the risks and realize it is something you will probably have to be intimately involved in on a regular basis. Platform lending is not really a passive investment.

Interested to hear what you pick(ed)

[Vince-Investing]

I got set up with Lending Club and deposited only $1,000 for now. It says I have to wait 5 days for it to be available to use. Is this normal? Thanks again.

[sean bash]

I got set up with Lending Club and deposited only $1,000 for now. It says I have to wait 5 days for it to be available to use. Is this normal? Thanks again.

Yes it is. It's the standard ACH payment delay.

[Vince-Investing]

thank you for your help before. Does anyone have advice on which type of loans are the best to invest in? I see the ones with higher interest and they're very enticing but I don't want to put money int hem if the people aren't going to pay them back.

[Vince-Investing]

I just read another forum line on here that a loan got approved on the lending club system when the borrower just wrote curse words on thea ppllication. what is the realistic default rate I should expect. I knew this wasn't a surefire investment but I just got a litterl nervous.

[platformlending]

thank you for your help before. Does anyone have advice on which type of loans are the best to invest in? I see the ones with higher interest and they're very enticing but I don't want to put money int hem if the people aren't going to pay them back.

Loans will default. That's the nature of the beast. You can track historical net results here: https://www.lendingclub.com/info/dem...profile.action

Keep in mind that it's not indicative of future performance.

[Warren]

Vince, how your investment is doing currently within a few months?

[platformlending]

How is your portfolio performing now Sean? Still investing with Lending Club?

[sean bash]

How is your portfolio performing now Sean? Still investing with Lending Club?

Fine. Earning around 7.5%. I only buy low risk notes now. A and B levels. That's putting me right in the middle of the pack:

[CO1]

Should I invest in prosper or lending club or other?

This great slideshow tells you everything you need to know about online lending right now - Business Insider https://apple.news/AEIw9GQlxTN6yJMYvIxccRw

[platformlending]

Link didn't work ^