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I absolutely love lending club. I have been running a couple test accounts where I actually put my EE degree to use and crunch the statistics on the loan information that is freely available. I am currently running a 14.4% annual ROI with no defaults... Granted it is only $250. But from my math I am right on with my prediction. Assuming I had 500 loans I would be running 15.2% +/- .8%. That is including a default rate of 3%. The way I see it I think this is a wonderful investment vehicle I wish to use to start my retirement savings *20 years old*.
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Dec 29, 2012 03:50
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The one thing that is really obnoxious about Lending Club so far, is the time it takes for a loan to be funded and approved. If the loan doesn't get approved, your money is returned and you have to start the whole process over. I submitted 40 loans as my first foray, and I've probably had to resubmit about half of those since they keep getting rejected. Is there a way to make that process smoother, or is that just inevitable?
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Dec 29, 2012 04:21
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That is strange I've not had that problem at all on any loans I have funded; however, I've funded at most 10 loans at any given time and only loans that were about to be fully funded.
lemoz fucked around with this message at 06:01 on Dec 29, 2012 |
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Dec 29, 2012 05:09
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It is annoying but just something to get used to. I constantly have between 7-12 loans in funding or under review
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Dec 29, 2012 05:58
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So, when looking at debt consolidation loans (Lending Club) I'm struck by how many are asking for a great deal more than their Revolving Credit Balance. I've seen several in which someone has, say 20k in Credit balance, but are asking for 25 or 30k.
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Dec 30, 2012 15:00
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A 25-50% excess isn't TOO outrageous, many people have other debts or obligations that they'd like to take care of in the same transaction, I'd just like to see some narrative explanation of where the money is going of it isn't obvious. That said, it does concern me when you see people asking for near the max ($35k) of unsecured debt, I prefer smaller loans with less round figures.
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Dec 30, 2012 15:51
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In North Carolina they're making me go with something called Folio, I guess that's where people who have already bought notes issued on LC go to trade them? I'm guessing people are just trying to unload the loans that are in default there.
Sephiroth_IRA fucked around with this message at 16:19 on Dec 30, 2012 |
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Dec 30, 2012 16:15
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Alereon posted:A 25-50% excess isn't TOO outrageous, many people have other debts or obligations that they'd like to take care of in the same transaction, I'd just like to see some narrative explanation of where the money is going of it isn't obvious. That said, it does concern me when you see people asking for near the max ($35k) of unsecured debt, I prefer smaller loans with less round figures. I have started sending the "If multiple purposes..." question to a lot of folks, though so far no one has come back with anything meaningful. I guess the first thought that comes to my mind is that someone wants to consolidate their debt to make it easier to run up more. "If I can cut my APR in half I could totally afford to buy a new tv!!" Perhaps I'm too much of a cynic. I've also been a bit surprised by how many people seem willing to loan money without any questions asked at all - though I wonder if many of those are the automatic investments. Cuz "Small Business Loan" is not enough explanation for me.
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Dec 30, 2012 16:27
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Dukket posted:I have started sending the "If multiple purposes..." question to a lot of folks, though so far no one has come back with anything meaningful. I guess the first thought that comes to my mind is that someone wants to consolidate their debt to make it easier to run up more. "If I can cut my APR in half I could totally afford to buy a new tv!!" Perhaps I'm too much of a cynic. The only questions that borrowers have incentive to answer well are the ones regarding delinquencies and public records. Those are red flags that a good answer can alleviate for some lenders. But all the other stuff is probably not going to make or break their loan's success. quote:I've also been a bit surprised by how many people seem willing to loan money without any questions asked at all - though I wonder if many of those are the automatic investments. Cuz "Small Business Loan" is not enough explanation for me. But nothing they put in a narrative is verified, and you can't ensure that they will follow through with their plan. So why bother asking? I guess if you wanted a writing sample to possibly judge intelligence? The loan category is just personal finance Darwinism: Debt consolidation loans get funded, small business/medical/wedding loans do not. This is rather ironic because I'm sure that lots of people who need debt consolidation are those that funded stupid purchases, weddings, etc with high APR credit cards. So P2P lenders look down on those who ask to borrow money for foolish purchases, yet applaud those who have already done so (debt consolidation) as moving towards fiscal responsibility. I fall prey to the same mentality, and I don't have a way to reconcile it.
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Dec 30, 2012 17:14
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Jalumibnkrayal posted:
No, there is no way to verify it, so it is mostly for the writing sample. Of course that is probably a false sense of security, but I'd be more interested in brief business plan than no explanation at all. If someone is turning their life around or starting/expanding/improving their small business you're doing good deed. Making money and saving the world! You can't beat that poo poo!! Is it foolish, perhaps but and it makes the choice seem less random, less of a gamble. Medical costs can get out of control, so I am not personally opposed to those loans. Weddings - I just kind of upset when I hear about the cost of them - though if they are going to pay it off what do I care - different strokes for different folks. I like going to fancy weddings.
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Dec 30, 2012 17:49
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Orange_Lazarus posted:In North Carolina they're making me go with something called Folio, I guess that's where people who have already bought notes issued on LC go to trade them? I'm guessing people are just trying to unload the loans that are in default there. Jalumibnkrayal posted:But nothing they put in a narrative is verified, and you can't ensure that they will follow through with their plan. So why bother asking? I guess if you wanted a writing sample to possibly judge intelligence? The loan category is just personal finance Darwinism: Debt consolidation loans get funded, small business/medical/wedding loans do not. This is rather ironic because I'm sure that lots of people who need debt consolidation are those that funded stupid purchases, weddings, etc with high APR credit cards. So P2P lenders look down on those who ask to borrow money for foolish purchases, yet applaud those who have already done so (debt consolidation) as moving towards fiscal responsibility. I fall prey to the same mentality, and I don't have a way to reconcile it.
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Dec 30, 2012 17:50
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Honestly you should not even bother reading the descriptions. Everything you need to know are from the numbers associated with the loans. Fund enough loans and you can rest assured knowing that based on past performance from similar loans you can expect a certain annual percentage. Alereon posted:Yeah, I was just reading about this and there seems to be two classes of people selling note on Foliofn: People who are selling good notes before they go bad (exploiting ways to tell a status will change before it does, like selling notes during the grace period after a payment is due but before it becomes "Late" and the note value plummets), and people who are spooked by a late payment or other bad status and unload the note at a steep discount. The first group is specifically looking for people like you (in states that require purchases through Foliofn) and who may buy their notes before they tank. The second group you can make money off of, if you have a stomach for risk. you can make some good money of people who flinch at first late payment. What I use to do is actually try and find loans that have had many grace/late payments but always managed to pay. The thought process behind it was that since they have been working so hard to pay off the debt even if late then they would continue to do so. I have yet to have one of the 50~ default on me and I picked them up at 8-10% discount.
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Dec 31, 2012 05:10
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I happened came upon some more evidence that 5 year loans are bad: In addition to the higher default rates for 5 year loans, loans expire 5 years after the issue date, even if the borrower has late payments or is on a payment plan. Any payments after the expiration date will not be forwarded on to lenders. This policy is common to both Prosper.com and LendingClub and is due to federal tax laws that these companies have to operate under.
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Dec 31, 2012 14:37
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I've been lending with Lending Club for at least 4 years. It's been an interesting ride. The customer service seems pretty good for lenders. They've called me a couple times to check out what I'm doing and why I'm doing it. It's been no biggie overall. In the last year or 18th months though, I've noticed that I've had a lot more chargeoffs. I only go for B+C+D rated loans. The big thing I've noticed is that debt restructuring loans are really taking a poo poo on me lately. And those are the only ones in the last 6 months that meet my criteria. I've been pulling money out because of this. You mileage WILL ABSOLUTELY vary though.
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Jan 2, 2013 03:58
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I currently have a 12k loan through Prosper. We had no collateral worthwhile to consolidate our debt, so I tried out Peer-to-peer. I think I am getting charged 6-6.5% on my loan. So whoever has lent me the money, is making a solid 5% on a three year. I have nothing but good things to say so far about Prosper.
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Jan 3, 2013 06:02
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I haven't updated in a while, so here are my latest numbers for LC:quote:My Notes at-a-Glance (466) I'm not thrilled with the number of 31-120 days late notes, but I still think my overall proportions are good (less than 2% failure rate). I have tweaked my search settings for notes, so hopefully, I won't have too many more charge-offs. On the plus side: quote:Payments Still quite a few payments coming in. It seems like it's been taking even longer to get notes issued, however. The 36 pending notes are mostly from money I deposited in mid-December. I still plan to buy 10-12 notes every pay period for the rest of this year, so I will update periodically, if anyone is still interested. I admit, I've become a little obsessive about it.
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Jan 24, 2013 14:51
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April posted:I haven't updated in a while, so here are my latest numbers for LC: I for one am still interested, even though I can never get on this myself. Just out of curiosity. I still haven't got a clear picture of how risky vs profitable this thing is and you posting your thing with numbers big enough could give a good picture in a while. (After your hundreds of in-progress bills get resolved one way or the other.) How much did you lose on that charged off bill again? I mean he probably paid at least some of the money back and not immediately default.
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Jan 25, 2013 15:31
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E/N: I wish I could use LC and Prosper, but my state is one of those in the "exchange only" category. If they listed which committees/bills/loopholes they were stuck in then we could pressure our state reps to do something about it, but they seem content to just leave a "we're working on adding more states" up instead.
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Jan 26, 2013 16:24
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SwashedBuckles posted:E/N: Oaks posted:Fuuuuuck, no Maryland investors. Oh well! Seriously. It's been at least two years, what are they doing?
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Jan 26, 2013 19:32
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Keisari posted:I for one am still interested, even though I can never get on this myself. Just out of curiosity. I still haven't got a clear picture of how risky vs profitable this thing is and you posting your thing with numbers big enough could give a good picture in a while. (After your hundreds of in-progress bills get resolved one way or the other.) I can't really give a solid answer on risk vs. profitability. Reason being, there are thousands of notes available at any given time, and every note/borrower is different. For me, so far, it's been profitable. My single charged off note cost me about $20, but compared to the payments I've received so far, that's not much. As I said before, this isn't our only investment, but so far, it's been the most profitable. I plan to keep buying a few notes every pay period (hey, everybody collects something, right?), but I'm not planning my whole retirement savings around LC.
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Jan 27, 2013 01:52
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I totally ate it on prosper by signing up in 2007-2008, heh, and using autobid for AA notes which were anything but, oh god. What a terrible investment..
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Jan 28, 2013 04:25
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I'd love to throw a bit of spare cash into this, unfortunately I live in Mass, and trading the notes does not appeal from looking into them. Why on earth does Massachusetts has to be so dumb.
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Jan 28, 2013 16:40
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Prosper.com sent me an e-mail that they are ceasing operations in Washington state at the end of the month, apparently they reorganized into an LLC and WA refused to approve the new entity. I was balancing between Prosper.com and LendingClub due to my history with Prosper, but it looks like the writing is on the wall.
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Jan 28, 2013 16:45
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YeahDavidLeeRoth posted:I'd love to throw a bit of spare cash into this, unfortunately I live in Mass, and trading the notes does not appeal from looking into them. Why on earth does Massachusetts has to be so dumb.
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Feb 1, 2013 07:41
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Since the new year I've noticed a sharp decline in the number of D-E-F rated loans with verified income on Lendingclub (I don't think I've seen one in the past month). I wonder if anything about their approval process changed?
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Feb 13, 2013 16:29
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How long does it typically take for a payment to be distributed to your account? The FAQ said it can take up to four business days to process, but it's been a little longer than that since my first payments were due. I have two notes I'm waiting on payment for, but the status says "Current" and "Processing...", which I took to mean the payment has been made and Lending Club is just dragging their feet on distributing the payment.
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Feb 20, 2013 17:18
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JulianD posted:How long does it typically take for a payment to be distributed to your account? The FAQ said it can take up to four business days to process, but it's been a little longer than that since my first payments were due. I have two notes I'm waiting on payment for, but the status says "Current" and "Processing...", which I took to mean the payment has been made and Lending Club is just dragging their feet on distributing the payment.
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Feb 20, 2013 17:29
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It's usually right around a week for me, sometimes a day or two longer if there's a holiday (like Monday).
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Feb 20, 2013 18:28
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I have exactly one note outstanding on Lending Club now. It started in 2009. The borrower missed a couple of payments 8 months later and started on a payment plan where he has been paying 40% of his original payment every month since. There are 2 years left on it at this rate. I looked at the original listing: "I have never defaulted on a loan and I don't plan to start now. My job is secure. There really is no risk here." Hahaha, at least he is still making the partial payments! And the interest I've gotten out of him up to now is juuuust enough to break me even if he stops paying tomorrow.
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Feb 22, 2013 02:36
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JulianD posted:How long does it typically take for a payment to be distributed to your account? The FAQ said it can take up to four business days to process, but it's been a little longer than that since my first payments were due. I have two notes I'm waiting on payment for, but the status says "Current" and "Processing...", which I took to mean the payment has been made and Lending Club is just dragging their feet on distributing the payment.
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Feb 22, 2013 02:39
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I just got a call from Lending Club. It sounds like they are calling around to members to get their opinion on the service. I told the guy that my only real complaint was that it takes FOREVER for notes to be issued, and that my biggest suggestion would be doing more of a pre-screen before offering the notes up for funding. I sometimes end up waiting months from the time I deposit money before it's actually working. He said that they are working to streamline the process, and that it should be closer to 10 days than the 2 weeks it's been historically for review/issue. I don't know if they are also trying to cut down on the number of rejected notes, or exactly what the plan is, but I do like that they are trying to get customer feedback and improve. I'm still averaging over 13% returns, and so far, only 2 charge-offs out of 520 notes. Has anyone else gotten one of those calls?
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Mar 1, 2013 20:09
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I have one note that is now over 30 days past due, and the person never made a single payment. That seems pretty sketchy they haven't made one payment.
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Mar 1, 2013 20:12
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Shadowgate posted:I have one note that is now over 30 days past due, and the person never made a single payment. That seems pretty sketchy they haven't made one payment. It's certainly true that someone who was motivated could probably craft listings that look legit enough, but I think (and could end up being proved wrong) that scammers aren't going to the effort to make listings that pass an inspection by someone motivated to not lose money when they can just craft one to fund through automated investments and people who aren't paying attention. Also, goddamn, my deposit finally cleared and there's nothing above B5 to invest in 
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Mar 1, 2013 22:44
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It was a D rated loan, so maybe not terribly surprising, but it was only $9k total, and for "wedding expenses". There were no public records or anything too, so probably just some rear end in a top hat that didn't care about their credit rating, especially since it was already bad.
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Mar 1, 2013 23:15
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Shadowgate posted:It was a D rated loan, so maybe not terribly surprising, but it was only $9k total, and for "wedding expenses". There were no public records or anything too, so probably just some rear end in a top hat that didn't care about their credit rating, especially since it was already bad.
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Mar 2, 2013 00:12
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Cool to see some lenders on here; I have a pending loan that's halfway funded already on LC for a consolidation. I was pleasantly surprised to see that I was rated an A1 despite being in the 750 FICO range. I used a Prosper loan about 5 years ago to help consolidate some credit as well as fund a move to another state for a job; that was a real good experience and I thought I'd give LC a try.
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Mar 16, 2013 19:29
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750 is a pretty good FICO. My guess which is based on absolutely no knowledge of who uses Lending Club as a borrower is that you are probably in the upper range of borrows
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Mar 16, 2013 19:59
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Got my first late payment note. C5, failed payment on the first scheduled date. Guess I'll kiss that $25 gone.
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Mar 26, 2013 18:51
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I just had my first missed payment, on an A5. He made the first 4 payments and has only missed one so hopefully it works out.
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Mar 27, 2013 19:23
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I've had a few that are repeatedly late, some that are late once and never again, and so far, 2 charge-offs and one default that is likely to end up as a charge off. Here's my current note situation:quote:My Notes at-a-Glance (558) So the number of "bad notes" is still a pretty small percentage of the total. Assuming a total of 7 charge-offs (all current late/default/charged off), I will have lost $175. But here's what I've made so far in payments: quote:Payments to Date $1,696.31 My monthly income right now is $408.55. I've slowed down a bit on my buying, due to other unforeseen expenses, but I am still adding notes every couple of weeks. Charge-offs suck hard, but it seems like it's happening on less than 1.5% of my portfolio.
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Mar 28, 2013 12:44
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