I recently got involved with peer-to-peer lending back in January through LendingClub.com, and my experience has been phenomenal. I invested a meager $500 just to play around with and because honestly I thought I would loose all or most of it. I lent to 10 different notes ranging from $20-$155, mostly choosing people with a B or better score trying to minimize credit card debt. I do have 2 E and F rated loans.
As of 3/19/12 I have received over $30 in interest and principal payments, with a net annualized return of 10.94%. The only downside was one note going through bankruptcy which is 120days overdue now. I blame this on myself for not taking more time looking into the borrower. All of the rest have been on time and perfect.
For anyone looking to get into some unusual alternative investments and willing to help another out of some nasty credit card debt or school loans, I recommend LendingClub.com. I suggest to do what I did and start with a very small amount of capital and expand. I'm now in the process of reinvesting my interest and couldn't be happier. Please do your own DD, and I hope my first person experience with LendingClub's services will help.
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