Jim Cramer: Stay Away From LendingClub

Jim Cramer says lending is harder than people realize and that 'there is a sense that if economy is not doing great you don't want to be in lending.'
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Stay away from LendingClub (LC) - Get Report . Even at $3 a share, TheStreet's Action Alerts PLUS Portfolio Manager Jim Cramer said lending is harder than people realize and that 'there is a sense that if economy is not doing great you don't want to be in lending.' Cramer said he's a fan of the traditional lending business and banks earning money from deposits. But the pure peer-to-peer lending, at the heart of LendingClub's business, carries too much risk.

At the time of publication, Jim Cramer's charitable trust Action Alerts PLUS held no positions in stocks mentioned.