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I'm not good at math, and while I did read a few dozen pages of the prospectus, I didn't really go through it with a fine tooth comb. An example that LC gives: http://www.lendingclub.com/public/steady-returns.action quote:Investors receive monthly cash payments of principal and interest. For example, if you invested $100,000 in 36-month, grade C Notes providing an aggregate 9.5% net annualized return, you would receive approximately $3,200 each month in cash payments to reinvest or withdraw. Ok, so $100,000 @ 9.5% net annualized return should payout $3,200 each month. That's $38,400 per year, or $115,200 over the three years. Minus the principle, that's $15,200 over three years, or a much less exciting 5% yearly return. What fundamental aspect of interest rates am I not understanding (totally serious)? Do the A1 interest rates basically work out to 1% per year?
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Dec 4, 2012 22:46
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slap me silly posted:The fact that you can be reinvesting that $3200/mo in something else. To get that 5%, you effectively averaged the 9.5% return of the lending investment with the 0% return from letting your $3200/mo sit and moulder. Ahh. Thank you very much.
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Dec 4, 2012 23:13
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Picked up some notes @ 13.41% weighted average. I was probably too conservative, but we'll see. Did I read correctly on one of the data collection sites that one user has over a hundred million invested in notes? That's...something.
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Dec 5, 2012 23:11
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Astonishing Wang posted:I just took a debt consolidation loan through LendingClub. It's a very easy process and I'm happy to have one payment now instead of 3, and I saved ~6% on the interest rate. The loan is at 9% vs. the 15% I had with Chase. Payments come out of my bank account automatically, with a reminder e-mail 5 days in advance. The loan was funded within a week. It got to around 50% funded, with about 25 people putting some in, and then one guy took the whole rest of it. It's neat to have all of these individuals putting their 'faith' in me and helping me out. It's nice to read an account from the other side. I was incredibly skeptical about the 27% interest rates on some P2P loans, but then I learned that many credit cards will soon have a max interest rate of 29.99%. I guess it makes sense to consolidate at anything less than that. Does anyone know if there's a way to monitor a specific loan's performance without investing in it? Or one from the past? I'm skeptical about some loans that reach 100% funding but I don't know how to see if my call was correct or not.
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Dec 16, 2012 20:28
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I seem to have interest trickling into my account? Every day it adds a few cents. It's enough that over a year it would be significant. I thought it might be an ongoing estimate of the payback rate of the notes over time, but it's much less than that.
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Dec 20, 2012 16:00
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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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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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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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Nifty posted:I'm having trouble finding this on their website. If someone could find these times, it would save me (and I'm sure others) lots of effort of checking their website throughout the day. Not from LC's website, but... http://www.lendacademy.com/lending-club-loans-being-snapped-up-quickly/ quote:As many investors know Lending Club adds loans to their platform in batches at 6am, 10am, 2pm and 6pm (Pacific time) every day. You can see these spikes in both graphs. The 6am addition is usually the largest as you can see but it also generates the most investment activity.
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May 8, 2013 23:55
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At this point I'm checking several times a day and I'm not seeing any loans at all with verified incomes. I think the institutional money that uses the API are drinking our milkshake. :/
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May 14, 2013 20:29
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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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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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