Dissecting My Twelve Loans That Defaulted On Lending Club

Lending Club Passive Income With Automated InvestingLast week I made a horrible confession. I am a greedy investor, or more importantly, I WAS a greedy investor when it came to my Lending Club account and investing in peer to peer lending loans. But, I have learned the errors of my ways. I love Lending Club and the idea of earning a great rate of return by investing directly in peer to peer loans of people who need funding and may not otherwise receive it.

So, I’m not giving up on investing in peer to peer lending through Lending Club. I’m trying to be a better loan picker and evaluator. So, here are a few areas that my Lending Club default loans have in common. Maybe by understanding a little more about why these may have defaulted, I can avoid making similar mistakes going forward in the future with new peer to peer loans.

Traits Of My Defaulted Peer To Peer Lending Loans

36 Month Maturities

Every single one of the 12 loans that I have that defaulted have a 36 month length of maturity. This is a little hard to gauge because I started investing in some of these peer to peer loans before Lending Club started offering five year loans.

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Can You Become A Millionaire By Using Credit Cards?

credit card

This is a guest post by Ryan Guina who writes about personal finance and career advice on his site, Cash Money Life and about military members and their finances on The Military Wallet.

Can credit cards make you a millionaire?Credit cards get a bad wrap. Too many people claim credit cards are evil, when nothing is further from the truth. Making such a broad statement is the same as saying that guns are evil.

Neither of these is evil, and when used correctly, they can be useful tools. The key is learning how to use them effectively.

How does that relate to becoming a millionaire? Glad you asked, and before we go much further, I’ll answer your the question I asked in the title: No, you can’t use credit cards to become a millionaire.

But you can use credit cards as part of a balanced financial plan, and depending on your financial habits, using credit cards can actually smooth your path to becoming a millionaire.

The path to millionaire status

Let’s take a look at two things: how to become a millionaire, and how to use credit cards effectively. Once we examine these two tenants of personal finance, we can investigate how using credit cards can help you on your path to becoming a millionaire.

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