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Old 12-02-2010, 08:06 PM
curious11 is offline
Join Date: Jun 2009
Posts: 278

They might pay off too early

Originally Posted by lindsaybluth View Post
Any reason not to have just class A stuff? Or would that barely pull a profit in, I suppose.
The risk with all A1 loans is that they may pay off too early. If a loan pays off early, then you will not make any money in interest.

I currently have 131 loans, 124 current, 6 paid off (3 A5, 1 B1, 1 B3, and 1 E1), and 1 late (B4 headed toward default).

Things to watch out for... Some loans have stated they own their home when in fact they were children of the owners living rent free.

My default claimed to be a chef at a 5 star restaurant.

Tip: Read the application carefully. It takes time, and it's your money.
Also, open a trading account and read some of the loans that are in default to see what those loan applications look like. It seems to me that some of those applications respond with very short answers...

Good Luck and Have Fun!

Last edited by curious11; 12-02-2010 at 08:06 PM. Reason: quote was messed up and fixed!