Lending Club offers two kinds of accounts, standard and PRIME. I have both types of accounts, and today I am reviewing the Lending Club PRIME account. This week marks ten months since we opened our PRIME account so I thought it was a good time to provide a review. I opened a PRIME IRA account in April 2010 in my wife’s name when I rolled over and consolidated some of her old work 401k’s.
What is Lending Club PRIME?
[Update: In late 2011 Lending Club increased the minimum investment to open a PRIME account from $5,000 to $25,000]
PRIME is a “full service” account for investors with at least
$5,000 $25,000 to invest. It is a special kind of account where Lending Club does all the work for you. Basically, you choose the rough interest rate of the loans you want to invest in, which equates to high, medium, or low risk loans and then Lending Club does the rest. There is no screening or filtering of loans, Lending Club just puts your money into a diverse group of loans based on your chosen level of risk. [Read more…]