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This is a peer to peer lending program where you invest funds into the program and bid to make loans to people who are in need of capital for variuos things. Debt consolidation, car loans, business, etc. The is for people who cannot borrow money in a traditional way and the loans are more high risk. Therefore, the returns can be better. The flip side of that is that the risk to the lender is much higher. You have to diversify the lending so that you can withstand the defaults as that WILL happen. The idea is that you make more return then you lose. Its something you have to follow closely. I have never used LendingClub personally but I have invested in the largest peer to peer club called Prosper. www.prosper.com
I have never made good returns in prsper as there has been more default than expected. Its' really hit and miss when dealing with this kind of lending. The truth is that you should probably give it a shot, but use a minimal amount of funds and start very slow. Read all you can about it and read all the reviews and instructions. Diversify your money in different investments. Stocks, funds, precious metals, and Lendingclub, etc. Spread it around a bit...