
Ask HN: Does Anyone Invest in Lending Club or Prosper? - dglass
I&#x27;m looking to diversify so that I&#x27;m not completely in stocks. I&#x27;m looking to hear about other people&#x27;s experiences and what kind of returns they&#x27;re getting through these peer to peer lending sites.<p>I&#x27;ve done some research online but most of the review sites seem to be blog posts explaining the pros and cons of each marketplace. I&#x27;m looking for reviews from people that have actually invested.
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PaulHoule
I invested in Lending Club in a time when I had a big income. I drew it down
in a time when I was working on my own business. I had them taking a few
hundred a week out of my bank account automatically and then I would log in to
buy notes and reinvest the payments.

I got a roughly 7% rate of return when defaults were factored in. I never put
a huge amount of effort into hand-picking notes, overall the experience has
been great.

I've had some fears that so far have been more hypothetical than real: (i) if
they get more focused on institutional investors they will be less focused on
me, (ii) if they get bigger they might relax their standards, (iii) if the
economy as a whole goes south, defaults could go up.

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sharemywin
If you look at prospers default rate it was very high during the crash, but
they blame it on underwriting. I think you need to take into account that when
the economy crashes a lot of prospers customers, IMHO, will get hit first.

