Lending Club Launches Tool to Track and Compare Loan Performance

Lending Club has just launched a new tool that allows investors to compare their loans’ performance with other lenders. This tool is part of Lending Club’s regular improvement of its sight. From my experience, Lending Club has managed to create an incredibly easy to navigate site for both borrowers and lenders. In some ways, it reminds of Discover Card’s site, which is hands down the best credit card site in the industry.

Lending Club has figured out exactly what information users need, had has made that information easily accessible on its site. But back to the new tool, here’s what it looks like in my account:

So in my case, net annualized return is about 5% above average. While that’s great, even one default and the return would come down significantly. So far I’ve been fortunate. But it is remarkable that the average return across all Lending Club investors is 9.94%.

This past week I had the opportunity to discuss my Lending Club experience with Barbara Bryn Klare, a journalist who writes two columns for the examiner.com. Here article, P2P Followup: Growing up is hard to do is a good read. Barbara also mentions my good friend Pinyo, who is a Lending Club investor and runs a wonderful personal finance blog.

If you’d like to become an investor in Lending Club notes, they are offering a $25 sign-up bonus to new investors. Just use this link to go to LendingClub where you can sign-up. You won’t see any reference to the $25 bonus when you sign up, but they will deposit it into your account. If you have any trouble, just let me know.

And if you are wondering how LC calculates net annualized return, the formula is really, really simple: