Lending Club Not Lending to Riskier Borrowers

[NYFan63]

Thought I would pass this along....

LendingClub to cut lending to riskier borrowers, raise rates http://www.cnbc.com/id/103696645
http://www.cnbc.com/id/103696645

[Anonymous]

As a lending club investor, I can tell you that the reason for this is that defaults and charge offs have skyrocketed lately. I've had about 8% of my loans default in the last six months.

Lending Club has to get the bad loans under control.

[RonM21]

If that is happening, then it would only make sense.for them to tighten things up.

[Anonymous]

I'm no expert here, but I would think the title of this thread could include many other names other than Lending Club.  In general the riskier the borrower, the lower their chances of being able to borrow.  While it may not be a 100% directly proportional graph at all times, that's always been the case generally speaking.

[Anonymous]

Did you read the article he linked? If so, I think you are misunderstanding. Lending Club is no longer going to lend to certain people that they previously would have. I think we are all well aware of the fact that riskier the borrower, the lower chance of getting a loan lol.

[Anonymous]

I'm not misunderstanding at all.  I just believe this business practice goes for far more lenders than just Lending Club as similar articles have been around for a while now.