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[quote=Anonymous]Does anyone here have any direct experience with LendingClub.com?  I understand the philosophy, the pros/cons, and risks associated with it.  However, overall, it looks like a very lucrative opportunity to invest excess cash that I have sitting idle.

I'm curious to know more details than what I'm about to already find online.  I see plenty of articles about how it works, some feedback on positive experiences, and charts showing a variety of metrics.  However, I don't really see any specific details on how it would work exactly.

With that said, here's a mock scenario.

I invest $5,000.  I setup an automatic investment plan at $25/per unit limiting my exposure to Grade A, B, C plans and individuals applying with a FICO score &gt;725.

What I'd like to know is:

1. What happens daily/weekly/monthly?  Do I see interest payments accruing, and then that interest is automatically reinvested, so I'm compounding my earnings?
2. I know there is a default rate, which is advertised at 3%, but is debatable based on how you slice the metrics.  Any direct experience to share with defaults and how that affects you're overall earning potential when well diversified?  (At 3%, I would assume for every $2500 I invest (100 units), I would expect to lose $75 (3 units), which is 3%.  However, if I'm earning 10% interest overall ($250), I'm actually going to net $175.  Does this sound accurate?

Any other details, experience, or stories you can share, would be much appreciated.[/quote]

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