While thousands of investors continue to earn great returns at Lending Club and Prosper, the bulk of the country has yet to even hear about it. This is slowly changing as seen in the greater frequency of peer to peer lending being mentioned (Forbes) in major news outlets. And the potential Lending Club IPO (FT.com) may also bring greater awareness. It seems more and more people each day are becoming curious about this new and exciting way to invest.
That said, there is a definite “leap of faith” involved when going from being interested in peer to peer lending to actually investing in it with your own money. For most Americans (typically people in their later years), registering personal information on an unfamiliar website and portioning it with thousands of dollars in trial cash is a fairly large pill to swallow.
To help these prospective investors, I have broken down the average registration and investment process below. Keep in mind that these are simply the basic steps to get a feel for this investment. If you are trying to understand peer to peer lending for the first time, you should instead watch LendingMemo’s video course or read my ebook. On the other hand, if you already have a good feel for peer to peer lending, you may want to forego the 80 A-grade notes and instead invest $5,000 within 200+ loans of your liking.
Note: this article shows the process via Lending Club. However, the process is generally the same on the other equally-deserving platform, Prosper. On Prosper, you would invest $2,000 in their safest grade: AA loans….MORE