Before you start making some income with LendingClub there are few steps you have to complete to setup your online account. Eligibility & verification of investor account is mandatory before you top-up your account & start investing. There are multiple options available including individual, joint, or trust account to tailor your needs.
The first step is to verify and then add money in your LendingClub account via your bank. The process is easy and usually takes few minutes to fully setup and activate your account.
Building up portfolio
To invest your money you have to select multiple criterions to diversify the risk involved and increase return on investment. Minimum amount is $25, when you invest in a specific loan, you will automatically receive a NOTE from LendingClub depicting interest earnings, term, & investment. This way an investor can diversify his investment across hundreds of notes to minimize the risk to a maximum extent. A number of options are available to build your portfolios including fully automated and manual approaches. The automation will follow your selected criteria, however, you can change, cancel, or pause auto investing anytime.
Receiving interest payments
You will receive monthly payments for your interest and principal whenever the borrowers make the payments. You will automatically receive your payment net of LendingClub fees along with your portion of interest & principal. Multiple notes may receive multiple payments within a single day.
Reinvesting the profits
Lastly, you have the option to either reinvest the revenue earned or withdraw the amount. One can use both automated investing and manual investing to create new notes. If you are looking to witdraw the available balance, you can schedule a wire transfer to your bank account.
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