The micro-loan thing is kind of cool idea.

But, it sounds more like fantasy football and fun than money making.

(10-09-2015 10:57 AM)South Carolina Duke Wrote:  

(10-09-2015 10:49 AM)VA49er Wrote:  

(10-09-2015 10:41 AM)Bull_In_Exile Wrote:  

(10-09-2015 10:08 AM)Fitbud Wrote:  

(10-09-2015 09:57 AM)Bull_In_Exile Wrote:  I've been using lending club for a couple of years, pulling in between 6-9% on the loans.

Okay you got my attention. Can you give me more info? I have several thousand in a savings account.

https://www.lendingclub.com/

Basically you micoloan. People apply to lending club for loans and they check credit and do some very basic background checks. Then the loan in divided up into 25$ notes with an interest attached you can then buy some of the notes.

You search through loans by setting parameters. A persons credit score, their debt, the number of credit inquiries, debt to income ratio, and if desired an interest class:

A 6.76%
B 9.98%
C 13.29%
D 16.66%
E 19.67%
F 24.18%
G 26.90%

I usually stick with A and B, occasionally Ill invest in a C if the person is not asking for too much.

About 95% of the loans I've put out were either paid back in full or are on schedule to be paid back in full (3 and 5 year terms). Those numbers are consistent with someone else I know who invests with LC.


The other 5% typically pay back about 40% of their value (principle + interest) before defaulting.

So, if a person defaults are you just SOL?

So what's the average amount of the principal? How much are tyeing up for 6-9%

Loans are broken up into 25$ notes. So a 1,000$ loan would be 40 notes, buy as many as you like. I have less than 5K and more 1K tied up. I am making enough on interest and principle payments every month to buy a few more notes. So I've stopped putting salary money in and am just working with whats there.

(10-09-2015 11:01 AM)HeartOfDixie Wrote:  The micro-loan thing is kind of cool idea.

But, it sounds more like fantasy football and fun than money making.

two points

1 - There is real money in FF thought I won't touch it with a 10 foot pole

2 - There is a lot of ways to filter who you invest on. You can filter on -

Interest Rate
Loan Purpose
Max Loan Amount Up to
Review Status
Verified Income
Funding Progress
Listing Expires in
Exclude Relisted Loans
CREDIT Score
Max Debt-to-Income Ratio
Earliest CREDIT line
Open Credit Lines
Total CREDIT Lines
Revolving credit balance
Revolving balance utilization
Inquiries in the last 6 months
Months Since Last Delinquency
Months Since Last Record
Home Ownership
Min length of Employment
Location State
Keyword
Public Records
Delinquencies (Last 2 yrs)
Exclude Loans already invested in
Loan Term
Initial Listing Status
Monthly Income
Loan ID
Recent Listings
Collections Excluding Medical
Major Derogatory
Joint Applications

(10-09-2015 11:04 AM)Bull_In_Exile Wrote:  

(10-09-2015 11:01 AM)HeartOfDixie Wrote:  The micro-loan thing is kind of cool idea.

But, it sounds more like fantasy football and fun than money making.

two points

1 - There is real money in FF thought I won't touch it with a 10 foot pole

2 - There is a lot of ways to filter who you invest on. You can filter on -

Interest Rate
Loan Purpose
Max Loan Amount Up to
Review Status
Verified Income
Funding Progress
Listing Expires in
Exclude Relisted Loans
CREDIT Score
Max Debt-to-Income Ratio
Earliest CREDIT line
Open Credit Lines
Total CREDIT Lines
Revolving credit balance
Revolving balance utilization
Inquiries in the last 6 months
Months Since Last Delinquency
Months Since Last Record
Home Ownership
Min length of Employment
Location State
Keyword
Public Records
Delinquencies (Last 2 yrs)
Exclude Loans already invested in
Loan Term
Initial Listing Status
Monthly Income
Loan ID
Recent Listings
Collections Excluding Medical
Major Derogatory
Joint Applications

Given all the different ways that someone could get a loan these days, why would someone want a loan from a place like this?

(10-09-2015 11:04 AM)Bull_In_Exile Wrote:  

(10-09-2015 11:01 AM)HeartOfDixie Wrote:  The micro-loan thing is kind of cool idea.

But, it sounds more like fantasy football and fun than money making.

two points

1 - There is real money in FF thought I won't touch it with a 10 foot pole

2 - There is a lot of ways to filter who you invest on. You can filter on -

Interest Rate
Loan Purpose
Max Loan Amount Up to
Review Status
Verified Income
Funding Progress
Listing Expires in
Exclude Relisted Loans
CREDIT Score
Max Debt-to-Income Ratio
Earliest CREDIT line
Open Credit Lines
Total CREDIT Lines
Revolving credit balance
Revolving balance utilization
Inquiries in the last 6 months
Months Since Last Delinquency
Months Since Last Record
Home Ownership
Min length of Employment
Location State
Keyword
Public Records
Delinquencies (Last 2 yrs)
Exclude Loans already invested in
Loan Term
Initial Listing Status
Monthly Income
Loan ID
Recent Listings
Collections Excluding Medical
Major Derogatory
Joint Applications

Dang.

I'm a gambler when it comes to investing but this sounds like real gambling lol.

(10-09-2015 10:58 AM)Fitbud Wrote:  

(10-09-2015 10:55 AM)Bull_In_Exile Wrote:  

(10-09-2015 10:45 AM)Fitbud Wrote:  Wow that's pretty cool.

I wouldn't mind doing something like that. I wouldn't go any higher than "C" however. That's freaking extortion.

Send me an email in a PM and I will shoot you a promotional invite they have. (put x amount in and the give you some money to invest on top of it)..

I stay away from them because they default more often than A's and B's.

If C (13%) is not extortion it's hard to see how D (16%) is. Also the D's and above are pretty rare. Right now I don't see any available. People who are less risk averse than me buy them up.

Is 25% too high? Perhaps but it depends. If you have terrible credit no money and your car breaks down how do you get to work?

Borrow 1,500 at 25% on a three year note from Lending Club and you pay back 2,800 over three years at less than 80 a month. And Keep your car/job.

It's not ideal but it's nothing like those payday lending places.

I get what you are saying. I just know I lose my mind when I see credit cards that charge 13%.

I just couldn't do that to someone.

I agree earning 7% in one year on say 1000 is great. I just don't feel comfortable having my money tied up for that long.

I think credit cards are different because they are things people use to pay for things month to month and roll on. A straight up loan is not as bad and if you pay back ahead of schedule you escape the interest penalty.

I had one guy pay back his whole loan in two months. 25$ investment and I made something like 20 cents.

(10-09-2015 11:07 AM)Fitbud Wrote:  

(10-09-2015 11:04 AM)Bull_In_Exile Wrote:  

(10-09-2015 11:01 AM)HeartOfDixie Wrote:  The micro-loan thing is kind of cool idea.

But, it sounds more like fantasy football and fun than money making.

two points

1 - There is real money in FF thought I won't touch it with a 10 foot pole

2 - There is a lot of ways to filter who you invest on. You can filter on -

Interest Rate
Loan Purpose
Max Loan Amount Up to
Review Status
Verified Income
Funding Progress
Listing Expires in
Exclude Relisted Loans
CREDIT Score
Max Debt-to-Income Ratio
Earliest CREDIT line
Open Credit Lines
Total CREDIT Lines
Revolving credit balance
Revolving balance utilization
Inquiries in the last 6 months
Months Since Last Delinquency
Months Since Last Record
Home Ownership
Min length of Employment
Location State
Keyword
Public Records
Delinquencies (Last 2 yrs)
Exclude Loans already invested in
Loan Term
Initial Listing Status
Monthly Income
Loan ID
Recent Listings
Collections Excluding Medical
Major Derogatory
Joint Applications

Given all the different ways that someone could get a loan these days, why would someone want a loan from a place like this?

If there credit score is 550?

(10-09-2015 10:59 AM)Kronke Wrote:  I believe your investments are spliced, not unlike a ETF or mutual fund. One $25 note is compiled of fractions of thousands of different loans, meaning the risk of 1 person defaulting is spread among the pool of investors.

That's backwards.. One 10K loan is broken into 25$ notes and you spread around your risk by not buying too many of them on any one loan. I think maybe I've bought more than a single note towards a loan three times in three years.

(10-09-2015 11:07 AM)Fitbud Wrote:  

(10-09-2015 11:04 AM)Bull_In_Exile Wrote:  

(10-09-2015 11:01 AM)HeartOfDixie Wrote:  The micro-loan thing is kind of cool idea.

But, it sounds more like fantasy football and fun than money making.

two points

1 - There is real money in FF thought I won't touch it with a 10 foot pole

2 - There is a lot of ways to filter who you invest on. You can filter on -

Interest Rate
....
Joint Applications

Given all the different ways that someone could get a loan these days, why would someone want a loan from a place like this?

The interest rates are generally less than you would get from a Bank or Credit Card company. many of the loans are debt consolidation. In my experience consolidation loans are the more reliable returners and "home improvement loans are the least but I've only done a few hundred notes.

You are not making enough return to take your wife and family to Outback Steak House for a meal each month.

(10-09-2015 11:07 AM)HeartOfDixie Wrote:  

(10-09-2015 11:04 AM)Bull_In_Exile Wrote:  

(10-09-2015 11:01 AM)HeartOfDixie Wrote:  The micro-loan thing is kind of cool idea.

But, it sounds more like fantasy football and fun than money making.

two points

1 - There is real money in FF thought I won't touch it with a 10 foot pole

2 - There is a lot of ways to filter who you invest on. You can filter on -

Interest Rate
Loan Purpose
...
Major Derogatory
Joint Applications

Dang.

I'm a gambler when it comes to investing but this sounds like real gambling lol.

That's not a fair characterization...

1 - You don't have to filter on all those. By default most people go with credit score, debt to income ratio, and inquiries in the past 60 months. I generally filter out 5 year lonas in favor of three, and set the credit score to 700+.

2 - I'd not call something with s 5-10% return rate "gambling" unless you want to call all stock and bond buying "gambling".

(10-09-2015 11:12 AM)Bull_In_Exile Wrote:  

(10-09-2015 11:07 AM)Fitbud Wrote:  

(10-09-2015 11:04 AM)Bull_In_Exile Wrote:  

(10-09-2015 11:01 AM)HeartOfDixie Wrote:  The micro-loan thing is kind of cool idea.

But, it sounds more like fantasy football and fun than money making.

two points

1 - There is real money in FF thought I won't touch it with a 10 foot pole

2 - There is a lot of ways to filter who you invest on. You can filter on -

Interest Rate
....
Joint Applications

Given all the different ways that someone could get a loan these days, why would someone want a loan from a place like this?

The interest rates are generally less than you would get from a Bank or Credit Card company. many of the loans are debt consolidation. In my experience consolidation loans are the more reliable returners and "home improvement loans are the least but I've only done a few hundred notes.

Fair enough.

I'm a little surprised though that consolidation loans would be more reliable than home improvement loans.

Why is that?

(10-09-2015 11:10 AM)Bull_In_Exile Wrote:  

(10-09-2015 10:59 AM)Kronke Wrote:  I believe your investments are spliced, not unlike a ETF or mutual fund. One $25 note is compiled of fractions of thousands of different loans, meaning the risk of 1 person defaulting is spread among the pool of investors.

That's backwards.. One 10K loan is broken into 25$ notes and you spread around your risk by not buying too many of them on any one loan. I think maybe I've bought more than a single note towards a loan three times in three years.

You're right, I see now. I watched the video on their website and initially misinterpreted how it works.

I keep a fair amount of money in my checking/savings account. There really isn't anywhere where you can get any decent return on truly liquid moneys.

But there is a benefit to this as I get preferred customer status from my bank. That comes with all fee waivers, that could more than add up in a year. I also get a free safe deposit box, free American Express travelers checks, preferred rates on loans (which I don't use).

If you want to put your excess funds to work, pay down the 25% credit card balances and make a true 25% on your money.

I also use credit cards for virtually every purchase. I have an American Express Blue Cash that pays 6% back on the first $6,000 of groceries (1% after), 3% on gas, 2% on department stores, and 1% elsewhere. Just got back from Vegas where my entire bill was covered by my annual cash back.

(10-09-2015 11:07 AM)HeartOfDixie Wrote:  If there credit score is 550?

Lending club does not put your loan request out there if your score is below 600...

(10-09-2015 11:13 AM)South Carolina Duke Wrote:  You are not making enough return to take your wife and family to Outback Steak House for a meal each month.

Given I have a very small investment in there (I started with 650) that's not too bad. I'll happy take 5-10% profit every year. At this point I'm "playing with other peoples money" as I don't have to put anything in there to buy notes every month.

(10-09-2015 11:15 AM)Bull_In_Exile Wrote:  

(10-09-2015 11:07 AM)HeartOfDixie Wrote:  

(10-09-2015 11:04 AM)Bull_In_Exile Wrote:  

(10-09-2015 11:01 AM)HeartOfDixie Wrote:  The micro-loan thing is kind of cool idea.

But, it sounds more like fantasy football and fun than money making.

two points

1 - There is real money in FF thought I won't touch it with a 10 foot pole

2 - There is a lot of ways to filter who you invest on. You can filter on -

Interest Rate
Loan Purpose
...
Major Derogatory
Joint Applications

Dang.

I'm a gambler when it comes to investing but this sounds like real gambling lol.

That's not a fair characterization...

1 - You don't have to filter on all those. By default most people go with credit score, debt to income ratio, and inquiries in the past 60 months. I generally filter out 5 year lonas in favor of three, and set the credit score to 700+.

2 - I'd not call something with s 5-10% return rate "gambling" unless you want to call all stock and bond buying "gambling".

I guess I was just not following on how exactly the whole process worked.

I got nervous when you said that this is debt itemized into $25 'shares.'

Let me ask you this, how many $25 debentures do you hold at any given time?

(10-09-2015 11:16 AM)QuestionSocratic Wrote:  I keep a fair amount of money in my checking/savings account. There really isn't anywhere where you can get any decent return on truly liquid moneys.

But there is a benefit to this as I get preferred customer status from my bank. That comes with all fee waivers, that could more than add up in a year. I also get a free safe deposit box, free American Express travelers checks, preferred rates on loans (which I don't use).

If you want to put your excess funds to work, pay down the 25% credit card balances and make a true 25% on your money.

I also use credit cards for virtually every purchase. I have an American Express Blue Cash that pays 6% back on the first $6,000 of groceries (1% after), 3% on gas, 2% on department stores, and 1% elsewhere. Just got back from Vegas where my entire bill was covered by my annual cash back.

Yeah my bank does the same for me. I have a few thousand bucks in the bank and it does allow me to waive a bunch of fees. Whenever I do get a little ahead on my bills however, I usually pay down debt.

(10-09-2015 11:16 AM)Fitbud Wrote:  

(10-09-2015 11:12 AM)Bull_In_Exile Wrote:  

(10-09-2015 11:07 AM)Fitbud Wrote:  

(10-09-2015 11:04 AM)Bull_In_Exile Wrote:  

(10-09-2015 11:01 AM)HeartOfDixie Wrote:  The micro-loan thing is kind of cool idea.

But, it sounds more like fantasy football and fun than money making.

two points

1 - There is real money in FF thought I won't touch it with a 10 foot pole

2 - There is a lot of ways to filter who you invest on. You can filter on -

Interest Rate
....
Joint Applications

Given all the different ways that someone could get a loan these days, why would someone want a loan from a place like this?

The interest rates are generally less than you would get from a Bank or Credit Card company. many of the loans are debt consolidation. In my experience consolidation loans are the more reliable returners and "home improvement loans are the least but I've only done a few hundred notes.

Fair enough.

I'm a little surprised though that consolidation loans would be more reliable than home improvement loans.

Why is that?

I have no clue. They are typically smaller loan request. Maybe that's it.

If anything, it does sound like a fun little hobby.

But, like South said, 5-10% on $650 per year.

No hiccups and the rule of 7 says you have $1300 in 7 years. That is a hobby, not an investment.

Granted, it sounds like a fun hobby.

I'm generally not interested in rates of return.