Author Topic: Lending Club: Has Anyone Heard Of Them? (Read 11101 times)

i was recently interested in lending club. i have a good credit history and a semi high risk tolerance. so i was thinking about taking a loan from lending club(should be a low interest rate) and investing it on the other end for a higher interest rate and make the extra few percent.

i know it sounds crazy but any thoughts?

p.s. i would be able to pay back the loan even without lending club...

gozalim · « **Reply #27 on:** March 25, 2015, 02:45:54 PM »

Quote from: Mordyk on March 25, 2015, 02:40:30 PM

i was recently interested in lending club. i have a good credit history and a semi high risk tolerance. so i was thinking about taking a loan from lending club(should be a low interest rate) and investing it on the other end for a higher interest rate and make the extra few percent. i know it sounds crazy but any thoughts?

p.s. i would be able to pay back the loan even without lending club...

outsmarting their actuaries? bad idea...

Mordyk · « **Reply #28 on:** March 25, 2015, 02:50:47 PM »

Quote from: gozalim on March 25, 2015, 02:45:54 PM

outsmarting their actuaries? bad idea...

i dont exactly understand what your trying to say. there are people that would be on either side of lending club and would benefit. so i am trying to benefit on both sides

Redbull3 · « **Reply #29 on:** March 25, 2015, 05:49:49 PM »

Quote from: Mordyk on March 25, 2015, 02:40:30 PM

i was recently interested in lending club. i have a good credit history and a semi high risk tolerance. so i was thinking about taking a loan from lending club(should be a low interest rate) and investing it on the other end for a higher interest rate and make the extra few percent. i know it sounds crazy but any thoughts?

p.s. i would be able to pay back the loan even without lending club...

Confused... if you have the money, why borrow, why not just use your own money? Borrow from yourself at 0% to maximize the spread.

Mordyk · « **Reply #30 on:** March 25, 2015, 05:51:28 PM »

Quote from: Redbull3 on March 25, 2015, 05:49:49 PM

Confused... if you have the money, why borrow, why not just use your own money? Borrow from yourself at 0% to maximize the spread.

There is a difference between being able to pay off loan over time and wanting to invest from pocket that amount

sam i am · « **Reply #31 on:** March 25, 2015, 07:52:49 PM »

Quote from: gozalim on March 25, 2015, 02:45:54 PM

outsmarting their actuaries? bad idea...

Ya. I think they would catch on and ban you. If you think you could come out a head you could borrow from them and then lend through their competition like prosper or vice versa.

PlatinumGuy · « **Reply #32 on:** March 25, 2015, 08:28:37 PM »

Quote from: Mordyk on March 25, 2015, 02:40:30 PM

i was recently interested in lending club. i have a good credit history and a semi high risk tolerance. so i was thinking about taking a loan from lending club(should be a low interest rate) and investing it on the other end for a higher interest rate and make the extra few percent. i know it sounds crazy but any thoughts?

p.s. i would be able to pay back the loan even without lending club...

It's called leverage. Depends on your risk tolerance.

Quote from: gozalim on March 25, 2015, 02:45:54 PM

outsmarting their actuaries? bad idea...

Not outsmarting them, he is accepting risk.

PlatinumGuy · « **Reply #33 on:** March 25, 2015, 08:31:03 PM »

Quote from: sam i am on March 25, 2015, 07:52:49 PM

Ya. I think they would catch on and ban you.

As a transaction facilitator they don't lose anything by the fact that one player is on both sides.

The risk of default cannot possibly be higher by lending than by spending.

Mordyk · « **Reply #34 on:** June 22, 2015, 12:56:10 AM »

Data point: ask your LOR regarding investing in lending club. There is a big issue about ribbis. Since it is not possible to make a heter iska and since many yidden lend from them it can be a d'oraysa

Mordyk · « **Reply #35 on:** January 05, 2016, 03:27:53 PM »

Quote from: Mordyk on June 22, 2015, 12:56:10 AM

Data point: ask your LOR regarding investing in lending club. There is a big issue about ribbis. Since it is not possible to make a heter iska and since many yidden lend from them it can be a d'oraysa

Bump

anyone here that has asked?

googwallet · « **Reply #36 on:** January 05, 2016, 10:10:16 PM »

Am I correct in my understanding that they only allow you to invest in personal loans and not business loans?

jmz · « **Reply #37 on:** January 02, 2019, 04:58:47 PM »

I know this is an old topic but does anyone have any experience or DPs on lendingclub?

S209 · « **Reply #38 on:** January 02, 2019, 05:26:08 PM »

Quote from: Redbull3 on March 25, 2015, 05:49:49 PM

Confused... if you have the money, why borrow, why not just use your own money? Borrow from yourself at 0% to maximize the spread.

Many would disagree with this, myself included. If you can borrow to invest at a lower %, why tie up your own money?

See: Every mega corporation.

Redbull3 · « **Reply #39 on:** January 02, 2019, 05:34:13 PM »

Quote from: S209 on January 02, 2019, 05:26:08 PM

Many would disagree with this, myself included. If you can borrow to invest at a lower %, why tie up your own money?

See: Every mega corporation.

Way to quote me from 4 yrs ago lol. I agree with you now.