I started my P2P lending journey through Lending Club! The signup process was easy and straightforward. I chose an “Investment” account as opposed to a “Retirement” account because I have already funded my IRAs to the maximum for the year (of course there are exceptions but remember that the $5500 you can put into your IRAs for the year is the TOTAL amount of money you can put in across ALL of your IRAs). After signing up, you set up a link to one of your banking accounts so you can electronic transfer some money in (you can also put a check in the mail to Lending Club). It does take a number of days for the money to clear into your account so be aware of this.
Once the money is in your account, you can then manually browse the available loans and choose the loans you wish to invest in (there is also an automated investing option). Depending on how detailed you want to get, you can filter the loans on a number of criteria such as the loan term (36 or 50 months), interest rate, debt-to-income ratio, etc. Once you find the loan(s) you are interested in investing in (funding), you specify the amount you wish to invest (loan) from your available cash with $25 being the minimum. You add the loans to your “order” and then “checkout” at which point you wait (around 7 days) to see if the loans proceed and get funded.
Check out our YouTube review!