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peer to peer lending small notes vs large notes
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i started with lending club about a year ago.  i love it.  it has been insightful.  off topic, but i am in a loan to a guy who make 120k a year and is regularly late and has a pretty high interest rate.  crazy. you gain some economies of scale by going with a bigger note.  i have $100 notes that i get hit for 2 or 3 cents for a fee, where $25 notes are always a penny.  however, i don't think that should be your deciding factor. i scale my note purchases based on how much i like the status of the borrower.  for example, i did $100 (which is currently my max) for a guy with a reasonable loan amount 16k, a stable work history (15+ years), a great credit history, and a great interest rate (16.9%).  if one of those things were a bit out of "whack".  i might go $50, two $25.   i prefer 36 month notes, really 5 years to get out of debt?  it is unlikely to happen imho. keep in mind that if you invest $100 in a loan, then you get one $100 note.  you can't break them up into 4 $25 notes.  for that reason, if you are likely to want to sell the note prematurely, keep it at $25.  the market is greater.   i've had a lot of success using the trading account, buying further discounted notes for people who want out of lending club, or get spooked by a couple of late payments and a change in billing date.   another advantage of using the trading account is you start earning interest day 1.  i've had new notes take a couple of weeks to go through.   to summarize: there are some other things, but that is the main stuff i look at.
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