Huh?
tkfourtwo1, to answer your question, I think it’s highly likely your loan will be fully funded. I’ve never had a loan (that I’ve invested in) NOT fully fund. It does happen, obviously, but I’d be surprised if an A5 failed.
He knows what he did.
I certainly hope so. With 8 days, 22 hours left I am at 56%. It sure seems slow going from this point.
And I wasn’t at my post because I realized those WERE the droids I was looking for…
If you haven’t yet verified your income with LC, that would probably get things rolling faster. I, for one, won’t touch a loan, even an A-class one, that has not been verified. Though it seems that plenty of lenders aren’t as strict, judging by the funding percentages on some loans I’ve looked at.
No, LC has me marked as approved with the green check. LC didn’t want any income verification from me, I even asked them…
I just don’t understand the experiences reported. You make a $100 loan, hoping to get $10 profit instead of $5 you might have gotten elsewhere. After clicking here and there and dithering you’ve spent $5 labor, if your time is worth anything.
Is it for fun? Some thrill of altruism?
Odd. I don’t know what’s involved in doing verification but I get the impression that it involves sending copies of your W2s or tax returns or paystubs. I do see other A-grade loans out there that have the “verified” checkbox.
I sorted by percent funded - and for the higher-percentage loans, there seems to be (from a quick glance which I admit may be wrong) that the higher-percentage loans are either lower amount (10K or less) or have income verified. Again, I could be way off. That said, it’s quite likely it’ll get fully funded. I’ve occasionally had money in a loan that wasn’t funded until the very last minute, though especially for a higher-grade one it usually happens before things get down to the wire.
Septimus: the difference in potential ROI is quite a bit higher than 5 dollars vs 10 dollars, if you look at rates for savings accounts. As you can see from experiences on this thread, there’s obviously quite a bit more risk involved as well (I’m relatively fortunate to have only had 2 defaults so far, but have other loans I’m keeping a closer eye on).
Fun? In my case, absolutely - I’ve said that numerous times. Altruism? Not so much, at least in my case, it’s all about getting a higher income. Because this is such a new medium, I have not invested a lot (I throw a few dollars in now and then, my total investment is less than a thousand dollars).
What is curious - and again, this is something that others have posted upthread, is why borrow from Lending Club (aside from the altruisim, “give money to other people vs Big Banks”)? I an pretty sure I could get a better rate from my credit union - certainly than what they’re charging for a B-class loan, and probably close to an A5 loan rate - and no origination fee.
I’m thinking of taking the plunge. Does anyone want to refer me?
Just did - though you have to have an initial investment of 2,500 to get the 100 dollar bonus.
Had a couple of loans pay off early in the last few days - one after 2+ years of paying, the other after about 20 months. The 2+ years is nearly the ideal scenario - after that point, you’re only getting a couple of pennies of interest per month, so your profits are basically all eaten up by the fees.
I’m up to 77 active loans plus one in funding, 12 fully paid, and 2 defaulted. Current rate of return is 9.24%. 32% A, 44% B, 16% C, and 7% D.
I downloaded the huge file with all the funded loans, have been playing with it in Excel with filtering and calculations to try to get some insight into which loans tend to have problems and which don’t. No real conclusions yet. I am thinking of trying to load it into Oracle and see if I can crunch numbers better that way.
I got a quick question.
Lets say someone is requesting $10,000 to do a Debt Consolidation but their Revolving Credit Balance is only ~$2500. Would you consider this a red flag?
Here’s my thinking, why are they requesting so much more then they owe on their credit cards? Am I overlooking something? I asked what they intend to do with the loan proceeds so I guess I’ll wait for them to respond before putting my money down.
Conceivably, though there might be other loans at play (e.g. a car loan at a higher rate) that don’t qualify as revolving.
I have seen loans where there were a lot of :dubious::dubious::dubious: flags. Like one I mentioned up-thread a while back: the rate on the LC loan was to refinance several existing loans, whose average rate and total monthly payment were both lower than the LC loan. One of the annoying things about the canned questions format is that I couldn’t ask them what that was about. Needless to say, I didn’t invest in that one!!
A quick status update on my portfolio: 9.29% return. 79 issued/current loans (plus one in review); 13 fully paid, plus the 2 which defaulted. So that’s 95 loans all told.
No loans are currently late; I had a couple that were paid slightly late (but still in their grace period) in the last 6 months. Both are now current and have been for a while. One, funnily, is “on a payment plan”… but they’re paying more than their regular payment each month.
A couple more early payoffs are looming: one, for example, paid everything but a few dollars last month (as in, principal balance is now 7 cents).
My earliest outstanding loan has made 30 payments and has a balance of 5.12 (or 4.91, depending on where you look - the 4.91 is the value shown on the payment history). If they make one more payment without defaulting, I’ve broken even on the loan (as in, I’ve been repaid enough to cover my 25 investment and the fees).
It looks like, in general, the principal is 50% paid at the 20th payment, and 80% paid at the 30th.
Still mostly A-B-C loans, and the occasional D; virtually all 36 month loans with a handful of 60 month loans.
I have two D-class loans that have the same rate. One’s a 60 month loan (which means it would have been a C-class loan at 36 months). Interesting to look at how the principal/interest breakout compare. For the 60 month loan, the first payment had principal and interest of 25 and 38 cents, while the 36 month loan had 52 and 38 cents. It’ll be interesting to watch how the P+I track relative to each other.
I’m still putting in 20 dollars new money every month, plus of course reinvesting all repayments. I seem to be averaging 4-5 new loans a month these days (regular repayments plus new cash plus prepayments).
Just ordered loan #100 
Hmmm - got some catching up to do here :). Does that count ones that have paid off early or been charged off. or is that strictly active loans?
I’m up to 67 loans as of today.
I had another default and charge-off early this month causing my net annualized return to drop from 9.2% to 6.41%. It’s slowly creeping back up.
At this point, I’m getting a credit into my account of between $3 and $6 every business day. I funnel all my proceeds into a new loan once my account balance reaches $40, so I purchase one new loan note every 8 days, on average.
I haven’t done a bank transfer of funds in to my LC account in almost a year, and have made $182 in interest on my $1000 investment so far, which has, amazingly, kept pace with the interest I received during the same period from my BOA savings account that now has over $80K in it. I’m really fighting the urge to throw another $1000 in to my LC account at this point. The thing that concerns me is the increase in the number of defaults lately.
Huh - you CAN get blood from a turnip, or something. My very first loan, that went bad after 7 payments and was charged off in November 2010… they just collected 94 cents. Minus a collection fee of 1 cent, so now I’m only down 20 instead of 20.86.
On the loan summary page, it lists principal/interest totals, and “Recoveries” - 84 cents instead of 94, which is odd.
The other difference from my other charged-off loan is that out of a 36 cent recovery, they took a 13 cent fee - much bigger chunk. Dunno why that was.
Weird - just noticed that my net annualized return is now 8.62% - it was 9-something before. Why would a recovery cause that to drop?? (or did it???).
Perhaps you had another charge-off? Have you checked all of your other loans?
Nope - just the two, and the “account activity” listing (why in hell do they have a Captcha on that, by the way??) specifically cited that one loan.
Heh. That Captcha is annoying there, isn’t it?
I started throwing $25 a paycheck in a few months ago. I have 12 loans now. All current so far. While I’m so smalltime, I’m sticking with only A-rated borrowers. Anyone else do it that way? Or does everybody split loans among all ratings? I watched a presentation that suggested varying risks to maximize profit and minimize risk, but it still seems like when your stash is small, you should stick with lower-risk ones.