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Got the first $200 invested in B5 - C5 notes with reliable credit histories / no defaults. Interested to see where this might go.Saint Fu posted:Yeah it really takes forever for things to happen with LC. The worst part is waiting for the loans to issue. They'll be fully funded and sometimes sit there a week before they are issued. It's worst right when you start since you only have a few loans anyway. I set up weekly $25 contributions so I always have some loans waiting to be issued, I never really look at the "in funding" notes anymore. Took your advice after I went to move another $100 into my account and realized it wont be there until this Friday. Now, I should have a note or two to invest a week. Thanks 
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Jun 17, 2013 05:43
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FISHMANPET posted:So what do you guys think of borrowing money from the likes of LC? Mine was funded fairly quickly by 1 person, but I mentioned I was already pre-approved by another loan company, but wanted to beat that rate. My rate with OneMain was 30% while LC was 16% so i quickly severed ties with OneMain after I was fully funded. I would highly recommend it for really small short term loans. Mine was 1,000 and I budgeted paying for 10 months. The only downside is if you want to make more than the monthly payment you have to e-mail support every month. You can make it permanent, but you sacrifice any hardship claims and limit your options and the monthly amount cannot be adjusted. cheese eats mouse fucked around with this message at 15:01 on Jun 17, 2013 |
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Jun 17, 2013 14:58
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cheese eats mouse posted:Mine was funded fairly quickly by 1 person, but I mentioned I was already pre-approved by another loan company, but wanted to beat that rate. My rate with OneMain was 30% while LC was 16% so i quickly severed ties with OneMain after I was fully funded. I would highly recommend it for really small short term loans. Mine was 1,000 and I budgeted paying for 10 months. The only downside is if you want to make more than the monthly payment you have to e-mail support every month. You can make it permanent, but you sacrifice any hardship claims and limit your options and the monthly amount cannot be adjusted. My experience way back then was that it was ridiculously easy to borrow the $6,000 I wanted. I didn't do a good job of reassuring lenders that it would be paid back or justifying my reasons for borrowing, I didn't post detailed income/expenses and it was still funded easily. I imagine that after the crash it's different now.
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Jun 17, 2013 18:22
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I still had to send in my last 2 pay stubs plus my W-2 to verify my income. This was after I had a backer though.
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Jun 17, 2013 19:27
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Briantist posted:I borrowed from Prosper years ago, and I didn't have any trouble paying more than the minimum without contacting support and without permanently raising my payment. I paid the 3 year loan off in less than a year. A lot of investors don't care about that, they make their investment decisions purely off of the numbers. If you have the right credit score, you can probably get a loan even if you say you will use it to become insanely rich in Vegas by using a foolproof system to beat roulette.
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Jun 18, 2013 04:10
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Just out of curiosity I did the "check my rate" form for both Prosper and LC. Prosper said my credit score is too low (it's around 725...) and LC offered a rate of 20.99% (I have credit cards at half that). I wasn't expecting the advertised rate of 6.xx% but drat that was high. But I am pretty intrigued by the investing side of LC so I may start with a few notes over the summer.
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Jun 18, 2013 13:57
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I am interested in peer to peer lending, but I have what is probably an absurd question. For those of you already involved, what is your end game? I just imagine a point where I feel like the bottom has dropped out or I am ready to move on for any number of reasons, but all of my money is tied up for a further 3 years. I just worry about some sort of other end of the bell curve scenario wherein Lendingclub falls on hard times and users stop paying their loans, and I am stuck with a bunch of defaulting loans. How does one plan for the down times? Okay really that's like 3 separate questions on 3 separate topics all stemming from the same concerns. It just feels like getting money in will take a week, and getting out will take years. Also, does anyone actually pay attention to the "you must have 70k liquid net worth, 100k in CA" thing?
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Jun 26, 2013 02:31
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These are just my opinions, but I will keep putting money into LC until I'm not confident of getting good returns. That seems sort of obvious, but in terms of default risk I mean as long as I don't think unemployment will go up significantly during the life of the note. I'm not too worried about LC themselves going out of business because it seems like it should be scalable and profitable (maybe I am an idiot), I do worry that institutional investors will get all the "good" loans and that seems like the most likely endgame. You're definitely right that LC money isn't liquid, though if you just need your money out for personal reasons (not poo poo MARKETS CRASHING SELL SELL SELL) folio.fn may work for you. Regarding the time horizon, do keep in mind that money trickles out (including interest) and your average note age will be less than 3 years (if you only buy 3 years and steadily buy more) so you're not locked in for your full initial investment amount. On risk, I think that if a diversified LC portfolio is in trouble that probably means the economy in general is hosed so you'd have lost money with many investments with the potential for decent returns. The way I look at it is that investing in consumer debt of any kind is essentially a bet that the economy (specifically consumer confidence and their ability/willingness to repay unsecured debt) will not implode during the repayment time of the loan. Given that people try not to default unless they can avoid it, there's also some significant lag time between things getting bad and the payments stopping. Maybe I'm over-optimistic, but I feel that by sticking to 3 year loans I can stop putting money in if I lose confidence that things are going in the right direction and just let the loans pay out before they get bad enough that too many of my borrowers lose the ability to pay. It's also important to note that my LC investments are a higher-risk part of a balanced, diversified portfolio, sweet Jesus don't put all your money into P2P loans (or any one thing).
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Jun 26, 2013 03:45
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I feel pretty much the same. Lendingclub is about 2.5% of my portfolio and I only invest what I am comfortable losing. The best case scenario would be for it to continue on forever or at least until I reach retirement when I would stop adding new funds and then stop reinvesting the returns and begin withdrawing as the payments slowly peter out. Currently I can have ~2 loans go bad per month and still be making a profit so as long as I am in the green every month, I am happy. I do not plan on dumping my notes at loss on folio.fn so if things go tits up real quick and more than 2 notes default every month I'll be taking losses. As Alereon said, in this scenario, I would more than likely be losing money on other investments too so I wouldn't feel as bad about it. I can't honestly say what would stop me from investing more in P2P before retirement. I suppose if I'm consistently losing money and others in the P2P lending community are also losing money I might stop buying new notes. That or if I can no longer find enough notes that meet my lending criteria (if institutional investors soak up all the "good" loans).
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Jun 26, 2013 09:41
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I started using Lending Club recently, tossing $25-50 in a week of disposable income I can live without. This is a trial run for me, to see how I do/how I like Lending Club. If I feel I'm successful, I will probably open an IRA next year and include this in the CD/bonds portion of my portfolio. But for now, I'll continue to chip away and see where this takes me to years end. Also, I didn't pay too much attention to the 70k networth thing - LC hasn't asked me to prove it. I plan on being responsible with how much I contribute and never putting more then I am willing to part with/lose.
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Jun 26, 2013 12:16
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quote:I am interested in peer to peer lending, but I have what is probably an absurd question. For those of you already involved, what is your end game? My personal ideal is to have 20,000 open notes. Yes, I realize how insane that sounds, and that it's probably an unrealistic fantasy. By every calculation I come up with, though, that number would generate a livable income from interest alone, and would only require maintaining that number of notes. I should add, I am definitely investing in more traditional vehicles as well, but none of them are as predictable - barring widespread economic catastrophe - as LC. I figure that once I get tired of maintaining the account, I'll just start taking out all the payments, and investing in something simpler. I am ridiculously note-addicted right now though. I'm up to where I can reinvest and get "free" notes every couple of days, so my account is growing well beyond what I am putting in from my bank account. Wasn't it Einstein who said that compound interest is the most powerful force in the universe?
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Jun 26, 2013 12:50
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sg54 posted:
I had read somewhere that this only applies to people investing more than a certain amount. I want to say $5000, but I'm not positive.
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Jun 26, 2013 18:38
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sg54 posted:Also, I didn't pay too much attention to the 70k networth thing - LC hasn't asked me to prove it. I plan on being responsible with how much I contribute and never putting more then I am willing to part with/lose.
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Jun 26, 2013 22:15
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So.... anyone who can help explain what's happening to a complete idiot (me)? About a month ago I threw some money in Prosper just as an experiment. I have 10 notes at $25 each. Well sometime in the past few days I got my first payment back into my account. The note was for 20k at 10.3% for 3 years. Except instead of the $0.80 I was expecting as my first payment I got $20 back - $19.91 principal and $0.08 interest. My principal balance is listed as $5.09 now. I'm assuming the borrower made some sort of huge payment early instead of the slow trickle I was expecting? Following that - assuming the borrowers next payment is as big as the previous one am I looking at only getting $0.16 in interest instead of ~$2 or whatever due to early repayment? And for anyone familiar with Prosper - is there any sort of way to see what sort of payments the borrower is making against the total balance of the loan? The note listing just has the basic info as always. If I'm completely confused about what's happening here or there's some better way to get info, I'd love it if someone could enlighten me.
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Jun 30, 2013 23:35
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After months of practically no verified-income loans, LC has tons of them again. Did some big money investors pull back on P2P loans?
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Jul 2, 2013 16:56
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Jalumibnkrayal posted:After months of practically no verified-income loans, LC has tons of them again. Did some big money investors pull back on P2P loans? I don't know what the reason is, but I am loving it!!!
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Jul 2, 2013 18:03
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Jalumibnkrayal posted:After months of practically no verified-income loans, LC has tons of them again. Did some big money investors pull back on P2P loans? I thought it was just my search settings. Good thing I got another $100 cleared today Also, is anyone having issues securing 3 year notes? I've had close to a dozen cancel and the money returned to me.
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Jul 3, 2013 05:29
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I am curious as why Prosper charges you more interest if you have AA rating and have had a previous loan with them, then not having a loan with them. You would think they would give you better rates of having a previous loan with them.
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Jul 3, 2013 07:21
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Toaster Ding posted:So.... anyone who can help explain what's happening to a complete idiot (me)?
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Jul 3, 2013 08:27
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MC Fruit Stripe posted:Yeah I'd love to know the answer to this because it sounds like dude made a payment of like, $16,000 and that's patently absurd. Maybe he got an inheritance or something. v  v Although I guess those don't come at such short notice.
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Jul 3, 2013 08:43
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Keisari posted:Maybe he got an inheritance or something. v Maybe he knew the money was coming, but needed the loan until he got it? One scenario I could think of is that they were moving, needed cash to put down on a new house or whatever until their old one sold (pure talking out my rear end speculation there). I don't know how some people pay off large loans that fast, but it happens sometimes. I've had 20 loans paid off early so far.
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Jul 3, 2013 12:04
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I have some money on Lending Club now, and I'm picking out a few notes. Am I right in finding that the biggest thing I'm looking for so far is lies? Because I am seeing some whoppers. 30k in "moving expenses" Claims of making $20k+/mo Claims of having almost no monthly expenses despite a huge amount of debt Debt consolidation amounts that have nothing to do with the revolving debt I'm basically just playing bullshit detector, no?
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Jul 5, 2013 23:18
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MC Fruit Stripe posted:I have some money on Lending Club now, and I'm picking out a few notes. Am I right in finding that the biggest thing I'm looking for so far is lies? Because I am seeing some whoppers. Here's my dumb opinion: Moving Loans - I don't touch these. Most companies will pay to move someone, if someone's moving without a job then that's a risky loan in my opinion. Income - This gets verified at some point along the way, but yea 20k a month is a little ridiculous and I'd be wary as well. Debt to Income ratio is a good indicator. Debt Consolidation - These are most of the loans so I generally look for people who are trying to cover their whole revolving debt. Sometimes people will only cover part of the debt (just the high interest credit cards) which is usually fine. I try to stay from large debt (again, debt to income ratio) since as someone mentioned earlier, bankruptcy might be a legit option for some of these people. There isn't a way to verify expenses so yeah you have to sort through the BS there. I like the small debt consolidation loans and the rich people home improvement loans. Although the rich people tend to pay the loans quicker so you're not making as much interest off an already low-interest loan.
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Jul 5, 2013 23:28
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Tell me about FolioFN? It seems that my state does not support investing directly with Lending Club(gently caress you Massachusetts, I'm working on moving out, but can't leave fast enough:()
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Jul 7, 2013 22:38
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Well, I've invested in 33 notes on LendingClub! I worked out a quick formula which'll tell me when I break even on each note. Essentially, if the person defaults before X, I lose - any payments after X represent my profit. So I guess I have 27 months to wonder if this was a good idea or not 
MC Fruit Stripe fucked around with this message at 07:06 on Jul 8, 2013 |
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Jul 8, 2013 07:03
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MC Fruit Stripe posted:I have some money on Lending Club now, and I'm picking out a few notes. Am I right in finding that the biggest thing I'm looking for so far is lies? Because I am seeing some whoppers. I would suggest creating a filter and then operating off of that primarily. Also keep in mind that a large percentage of the notes I invest in, end up not being funded even after I've filtered out clearly terrible people. My filter is something like: 36 month loans only 0 delinquencies in last 2 years 25% max dti Exclude loans with public records 60% revolving balance utilization. It's way too soon for me to say that this is a great filter, but I wanted to skim off the clearly bad with money people.
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Jul 8, 2013 14:27
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Dazzleberries posted:I would suggest creating a filter and then operating off of that primarily.
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Jul 8, 2013 17:26
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lord1234 posted:Tell me about FolioFN? It seems that my state does not support investing directly with Lending Club(gently caress you Massachusetts, I'm working on moving out, but can't leave fast enough:() So I'm also looking to invest from massachusetts. I was a prosper early adopter around 06-07 and made some money and want to get back. Any thoughts about FolioFN? My though is to try to pick up relatively new loans as if I had invested initially.
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Jul 9, 2013 00:02
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asdf32 posted:So I'm also looking to invest from massachusetts. I was a prosper early adopter around 06-07 and made some money and want to get back. I haven't had any experience with FolioFN. I've browsed it a few times, and it mostly looks like notes that are late, that people are trying to unload before they default. I would imagine though, that there are some good deals from people holding decent portfolios that just want to get their money out and be done.
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Jul 9, 2013 00:09
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So I requested a loan of about 12,500. There is no co-application system in place, however I posted mine and my boyfriend's income. I don't make 60k on my own, however I am considering it as income to consider as repayment for the loan (which I am to understand, is what you are supposed to do with any lending system). If they try to verify income, will I be rejected because technically some of the income is in his name? In other news, its mostly funded already! quote:Terms $12,500.00 / 3 years / 12.35% If anyone wants to invest in me, I have a loan number. But I figured I'll be safe for this moment and not post it on here until I figure out if I am allowed to. 
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Jul 12, 2013 14:23
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Beefstorm posted:So I requested a loan of about 12,500. There is no co-application system in place, however I posted mine and my boyfriend's income. I don't make 60k on my own, however I am considering it as income to consider as repayment for the loan (which I am to understand, is what you are supposed to do with any lending system). If they try to verify income, will I be rejected because technically some of the income is in his name? Why are you supposed to include the income of other people who aren't co-signed on the loan or married to you? Your boyfriend has no legal obligation to repay your debts, so including his income seems very misleading. Here's to hoping I haven't invested in any $12.5k loans recently.
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Jul 12, 2013 15:12
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Jalumibnkrayal posted:Why are you supposed to include the income of other people who aren't co-signed on the loan or married to you? Your boyfriend has no legal obligation to repay your debts, so including his income seems very misleading. Here's to hoping I haven't invested in any $12.5k loans recently. From what I am to understand (and what banks told me before when I applied for traditional loans), any income that will be included in repaying the loan, including other sources, should be included in the consideration. We are both paying it. So we put both. I mean I could be wrong. And then I just call to cancel it and do it again properly. Also, we would be married...but you gotta love gay marriage laws... :/ Beefstorm fucked around with this message at 15:29 on Jul 12, 2013 |
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Jul 12, 2013 15:20
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$8,600 invested by 5 investors? Sheesh, people are ballers. I've earned almost a dollar in interest so far. I'm home free.
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Jul 12, 2013 18:12
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MC Fruit Stripe posted:$8,600 invested by 5 investors? Sheesh, people are ballers. One investor did $8,000 of that. It was the first investor. And it just finished funding with 98 investors. WOOT!
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Jul 12, 2013 18:53
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Beefstorm posted:One investor did $8,000 of that. It was the first investor. Hopefully it's similarly fast the next time you apply!
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Jul 12, 2013 19:06
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I signed up for an account tonight and saw that there is a $100 fee per year to use IRA funds to buy notes. Do you guys use money that's not affiliated with your retirement accounts for LC? I kind of assumed this was Roth IRA territory for most people, but $100/yr seems like a lot unless you have heaps invested. Cheers.
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Jul 13, 2013 04:26
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antiga posted:I signed up for an account tonight and saw that there is a $100 fee per year to use IRA funds to buy notes. Do you guys use money that's not affiliated with your retirement accounts for LC? I kind of assumed this was Roth IRA territory for most people, but $100/yr seems like a lot unless you have heaps invested. Cheers. Uhhh I'm not involved in it, but if I were going to invest in this sort of thing, I would be using extra money that I expect to lose, in the same way that I would with gambling or penny stocks or somesuch. It's probably more safe, but still. Don't gamble your retirement funds?
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Jul 13, 2013 16:07
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I went to sign up today too, but unfortunately Texas only allows for FolioFN as well, and I'm not sure how I feel about that yet. Normally this state lets me do all kinds of crazy things with my money! I guess I'll put a smaller amount of cash in and feel it out.
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Jul 24, 2013 17:14
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For the non-income verified loans on Lending Club, my understanding is that they have to verify their income at some point before the loan is issued, right?
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Jul 25, 2013 19:53
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baquerd posted:For the non-income verified loans on Lending Club, my understanding is that they have to verify their income at some point before the loan is issued, right? Yes, that's correct.
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Jul 25, 2013 20:01
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