I have tried LendingClub and made about 9.8% annualized with it. I am dwindling down my positions, however, because it is too much work. For one thing, the notes are callable anytime and quite a few people pay their loans back early. So you will find yourself constantly looking for new notes to invest in and that takes a lot of time if you research them properly. Plus I found it hard to find loans that met my pretty strict selection criteria. Also, no matter how highly rated the notes are, the threat of default is quite real. That's simply because even people with the best credit rating are often one job loss away from default. That single point of failure means that borrowers on LendingClub would probably be rated pretty poorly in the bond world - even for the best rated borrowers on P2P websites. Personally, I consider P2P notes junk bonds.