Hello my fellow Go Billionaires!
If you're new here, and wondering what's been going on the blog please feel free to click here to get to know me a little better. This week I’m going to give you a small introduction into what I’ve learned during the classes I have been taking with my Go Billions mentors this week. Each week the objective is to sit down and go over a step-by-step process of something pertaining to the financial world and then applying it to real life. This week’s lesson was based off the website The Lending Club.
The Lending Club is a United States based peer-to-peer lending company that opens up a bridge that connects people who visit the website to obtain a loan to backers who are willing to lend it out to them. Wildly successful, it is currently the world’s largest peer-to-peer lending service.
A very personalized setting, which I think is a unique and added touch, the website allows those seeking loans to create profiles about themselves filled with personal information as well as what the requirements are for the specific type of loan you are looking for. Things such as credit score and one’s credit history comes into play (any credit score below a 640 is not even considered so make sure you know how high yours is before delving into the website). Out of the fifty states, only thirty-nine are eligible for investors to purchase notes from The Lending Club. And all loans, which are mostly unsecured personal loans, can range anywhere from $1,000 dollars to the maximum of $35,000 dollars.
Ratings created to organize people’s profiles range from A, being the lowest and the safest, to G, which is the highest and most volatile. Most people prefer to stay between the B through C area when it comes to it being a safer return as an investor. The higher the interest level, the closer it is to G. And you can either be pre-approved, which means that you have been screened, or you can be non pre-approved which means that if you are denied you get your money sent back.
I like that The Lending Club offers users the ability to connect with each other as well as lend a helping hand (with interest, of course) over the course of time. It’s a creative solution to the hassle of loan and debt collectors, and it’s an easy way to manage your money as well as your payments towards something that you need help with, be it for a mortgage on your house or student loans. In this day and age it is important to have options for alternative ways towards overcoming financial problems both creatively and efficiently.