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[nonattender]

http://www.peer-lend.com/2008/01/16/gaming-the-lending-club-bonus-promotion/

Figured I'd let you guys in on the fun... If you try it out, remember where you heard it!

-t

[pioneer11]

I love legal sources of free money.

[onthefence]

A) Lending club borrowers may not pay off loans until 3rd month.
B) As the loan amount increases, so does the Lending Club special credit grade, so you really won't be able to pass through as many bucks as you think.
C) Nothing screws up friendships faster than playing games with money.
D) You must "submit" your portfolio for review to get your payout.
E) Lending club has also limited the TOTAL payout for EVERYONE (the last ones in the door might get screwed).

Like any redemption game, if you don't follow the rules precisely you might get your @ss handed to you.

If you want to bite on it go ahead.  But I suspect it might bite you in the rear.

[nonattender]

*poof*  (see later posts)

-t

[onthefence]

*Content redacted at the kind request of moderators*

*Content self redacted at the kind request of moderators*

For anyone else interested, I suggest you keep an eye on the total payout limits, play the game by loaning to real clients & make sure you understand the risks for defaults.

[nonattender]

A) Lending club borrowers may not pay off loans until 3rd month.
B) As the loan amount increases, so does the Lending Club special credit grade, so you really won't be able to pass through as many bucks as you think.
C) Nothing screws up friendships faster than playing games with money.
D) You must "submit" your portfolio for review to get your payout.
E) Lending club has also limited the TOTAL payout for EVERYONE (the last ones in the door might get screwed).

Like any redemption game, if you don't follow the rules precisely you might get your @ss handed to you.

If you want to bite on it go ahead.  But I suspect it might bite you in the rear.

a)  Not true.  Read the promissory notes, the lender agreement, the borrower agreement.
 a1)  Even IF your uncited statement true, so you "pay" more "interest" to.. yourself?  sfw?
b) This is quasi-true.  Not everyone will be able to borrow $25k.  Spread it around.
c) sure. ok.
d) Submitting a portfolio is lendingclub speak for "bidding".  I quote:  "No special sign-up or tracking is required – we will run reports on the system to determine bonuses. Feel free to email us at lender.offer@lendingclub.com to ask about your bonus."
e) It's limited to $1,000,000 total payout and they will notify users when that cap is reached.  It's currently not even close.

Any other questions?

-t

[onthefence]

*poofed*  poster i was responding to busy editing their post..

Yes.  I edited my post.  I did not subtract any of my writing*.  I did add some information though.  I am done.  You may respond now.  *Content self redacted at the kind request of moderators*

*Note: above posts (& minor fun fisty-cuffs) have had content self edited out at the request of moderators.

[nonattender]

*poofed*  poster i was responding to busy editing their post..

Yes.  I edited my post.  I did not subtract any of my writing.  I did add some information though.  I am done.  You may respond now.  May I suggest using the word "bs" 600 times to make your point as clear as possible.

No problem!  Care to cite sources, or got more BS objections?

(Abbreviated, in deference to Ferrix, since this is the public forum.)

-t

[LoanChimp]

I'm sure LC* (Lending Club not LoanChimp) thought this through, and it's worth the few bucks they'd have to dish out to pad their numbers and prop up loan success rates.

Not a game I would play, though. (I'm not brave enough to do the balance transfer shuffle either...  )


ETA: * - I'm the original LC... 

[Urbi_et_Orbi]

So, should we all just lend to each other?

LoanChimp - the shuffle game (BT arbitrage) was one of my most lucrative sources of largely passive income this year.

[nonattender]

I'm sure LC* (Lending Club not LoanChimp) thought this through, and it's worth the few bucks they'd have to dish out to pad their numbers and prop up loan success rates.

This was the vibe I got...  it'd be very nice for them to be able to say "We did $(insert large number here) of loans in Q1"...

-t

[mhs505]

So, should we all just lend to each other?

LoanChimp - the shuffle game (BT arbitrage) was one of my most lucrative sources of largely passive income this year.

Ok, I'll bite .. how do you make income from it?

[Urbi_et_Orbi]

So, should we all just lend to each other?

LoanChimp - the shuffle game (BT arbitrage) was one of my most lucrative sources of largely passive income this year.

Ok, I'll bite .. how do you make income from it?

BT arbitage - take money at 0% (either directly or indirectly via balance transfer), stick the cash in high-yield savings.  Repay minimum required until promo rate expires (if applicable).  At that point, re-pay in full.  Keep the excess for yourself.  Rinse & repeat.

It's really only worth the effort (in my mind), if you can shuffle at least $50K around this way.

[onthefence]

nonattender,
A) I looked for that 3 month minimum borrower retention of the loan & could not find it.  All of the locations in Lending Club's site I found state that loans can be paid back at any time.  So either, I have not found it or, more likely it has changed or I am mistaken.
D) When they initially offered the 5% deal, they had a bit about 'submitting your portfolio'.  I saw this as a dangerous rebatish situation.  Current details no longer mention this 'submit your portfolio' game.  They may have eliminated this foolishness from the deal.  I can't find any reference to it anymore.

A new item that may be of concern is this:

4. The Team at Lending Club is very excited about this offer, and wants as many lenders as possible to participate. Lending Club reserves the right to withhold bonus payments in the case of fraudulent activity or any other violation of the Terms of Use, found here: http://www.lendingclub.com/info/terms-of-use.action

http://blog.lendingclub.com/thank-you

If Lending Club considers this kind of arbitrage fraudulent, you might lose out.  Then again, if they just want to pump their numbers, they might let it ride.  Who knows.  Should we call and ask them?

[Cheerful_Lender]

I'm sure LC* (Lending Club not LoanChimp) thought this through, and it's worth the few bucks they'd have to dish out to pad their numbers and prop up loan success rates.

Not a game I would play, though. (I'm not brave enough to do the balance transfer shuffle either...  )


ETA: * - I'm the original LC... 

LC is not to be confused with CL.

ETA: * - I'm not the original CL...