As you might already know, Lending Club is not available in every state of the USA depending on the individual laws for that state. For those interested in Lending Club in California they should be happy to know that they are lucky enough to be able to participate quite freely in the Lending Club program. The headquarters from Lending Club are also based out of California, the Bay Area to be exact so you have a little extra assurance that the company is right in your backyard.
While as a California resident you are eligible for direct investing with Lending Club. That doesn’t mean however that there aren’t a few special exceptions that need to be noted when getting ready to invest. Regularly, investors from the 28 states that are approved for Lending Club will need to have an annual gross income of at least $70,000 and a net worth of at least $70,000 exclusive of home, home furnishings and automobile. Alternatively applicants will be accepted if they have a net worth of at least $250,000 also exclusive of home, home furnishings and automobile.
Rules for California residents are a bit stricter requiring applicants to have a bit more money before starting to invest with Lending Club. California residents will either need to have an annual income of $85,000 and a net worth of $85,000 excluding home, home furnishings and automobile. Alternatively they can be assessed just by their net worth which is lower than other states requiring your net worth to be only $200,000 with the same exclusions. The real difference though is that California residents have a third option if they are unable to meet either of those requirements. If their annual income or net worth is not enough, they can still invest in notes but not for more than $2,500 and additionally agree to not purchase notes that exceed 10% of their net worth.
The 10% rule is standard for all states and not exclusive to California but still needs to be mentioned for California residents receiving that third option to invest without having the same amount of money that are required for other states.
Even though some of the initial rules are slightly stricter for using Lending Club California, in actuality California residents have things much easier as those who do not have high annual incomes or net worth are still eligible to invest.