lending club. 35k at 6.78% pre approved

[MrCrabs]

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@pizzadude wrote:

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@creditnocash wrote:

i dont have any dergos/late payments etc. 

my only problem is high util. i still make my payments etc everymonth. 

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It sounds like a great deal to me ~ what is the term?  24 or 36 months?

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Lending Club uses 36 or 60 month loans.

[creditnocash]

i could for sure handle 350 /month 

20k/60 months +interest. and id rather make extra payments when bonuses come around. 

my dti is probably closer to 50% right at this moment because my car payment/amex charge/other cc payments. once the 345 min payment on my amex dissapears, dti should be way less. 

[Revelate]

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@MrCrabs wrote:

Really? my state only allows me to use the secondary market, but on the lendingclub forum i frequent, I always hear about people not being able to disperse all of their funds because the orders are getting filled too fast when released. Are you going for higher graded loans or lower grades?

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It may have been intrinsic to early this year when people were hoarding, but I was getting a lot of notes that didn't fill (I bottom feed, the average on my account is something like 20.35%).  I recently dispersed the remainder of my initial funds and everything funded nearly day of... been dipping my toes in for a while now, and their Prime interface isn't good enough for what I want, should've likely found a third party interface but c'est la vie.

I've only been playing with it, but based on note performance (no lates, no defaults, only one prepayment, which if I can turn around and fund another note quickly again, no biggie in my book) I'm strongly tempted to start sweeping my excess cash to LC instead of into my brokerage accounts now.  Seems to be a solid investment choice for asset mix.  The number of slum loans also varies wildly, some days there's hardly any, or like recently where I had something like 40 loans that I wanted buy into and virtually all funded.  Good day that.

[Revelate]

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@creditnocash wrote:

i could for sure handle 350 /month 

20k/60 months +interest. and id rather make extra payments when bonuses come around. 

my dti is probably closer to 50% right at this moment because my car payment/amex charge/other cc payments. once the 345 min payment on my amex dissapears, dti should be way less. 

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Seems to be perfect for what you need, and it'd be a pretty large financial win from the sounds of it.

[Middleswarth]

When you fund a loan in Lending Club, do you see the borrower's information or is it just his or her stats?  I have a couple friends that loan money at LC.  I may want a loan from LC or Prosper at some point but I am not interested in sharing my financial information with them...

[TheConductor]

I highly recommend applying with both Prosper and Lending Club, as the loans offered can differ considerably. While they look at FICO score, they also have internal scoring models that can cause a lot of variance in your final rating on their credit grading scale.

I just apped with both for a $30k business expansion loan.  Prosper would offer no more than $25k, but at a rate of 14%.  Lending Club would offer up to $30k, but regardless of amount they wanted 27%. Needless to say, I went with Prosper. I intend to pay the loan off early, but still...that higher interest rate would have meant a significantly higher final cost.

And yes, I know that 14% is still a high rate, but this was a time-sensitive deal that didn't allow for the luxury of taking time to do the kind of documentation needed to get a business loan from a bank. Even without any expansion, the business will pay off the loan in 6 months, so I consider it a win. 

But I digress. Main point: shop around. Prosper and LC are soft inquiries anyway until your loan is actually approved by underwriting, so it won't hurt you to try both and see what you are offered.

[TheConductor]

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@Middleswarth wrote:

When you fund a loan in Lending Club, do you see the borrower's information or is it just his or her stats?  I have a couple friends that loan money at LC.  I may want a loan from LC or Prosper at some point but I am not interested in sharing my financial information with them...

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Well, depending on what you mean by "my financial information" you may be unhappy.

You do have to provide verification of income (e.g. a W-2 and a recent paystub) and a bank statement to verify your ownership of the bank account that will receive the funds.

They do not directly provide these documents to investors, but they do show a bucketed income range to investors (e.g. 125k to 150k) and advise them when it has been verified based on your documentation.

They do also allow investors to pose questions to the borrower, although this is not always necessary. My loan was bought as a whole loan on the basis of the stats alone before anyone had even verified my documents. But you should be prepared for the possibility of being asked a few interview questions in case it happens.

Overall, though, it is Prosper or LC who sees your financial documents, and investors just see the financial profile facts those documents substantiate (e.g. monthly income, monthly debt payment, DTI ratio, etc.)

[Middleswarth]

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@TheConductor wrote:

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@Middleswarth wrote:

When you fund a loan in Lending Club, do you see the borrower's information or is it just his or her stats?  I have a couple friends that loan money at LC.  I may want a loan from LC or Prosper at some point but I am not interested in sharing my financial information with them...

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Well, depending on what you mean by "my financial information" you may be unhappy.

Thanks for the reply. My only concern is divulging income to a co-worker who is also an investor.  That would NOT be cool.  I did some research and it appears that this info would not be passed along.  The borrower and the investor(s) do not know each other.

I was pre-approved at both Prosper and LC.  LC is giving me better rates but I found another catch that stopped me cold.   Both require payments to be made via ACH from my checking account.  That will never happen - all my bills are paid BY ME from my USAA Bill Pay service and nothing is automatically taken.  So while this thread gave me the idea, a little research and I am not interested.

I may consider being an investor at some point.  That sounds like you can get a pretty good return.

[MrCrabs]

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@Revelate wrote:

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@MrCrabs wrote:

Really? my state only allows me to use the secondary market, but on the lendingclub forum i frequent, I always hear about people not being able to disperse all of their funds because the orders are getting filled too fast when released. Are you going for higher graded loans or lower grades?

---

It may have been intrinsic to early this year when people were hoarding, but I was getting a lot of notes that didn't fill (I bottom feed, the average on my account is something like 20.35%).  I recently dispersed the remainder of my initial funds and everything funded nearly day of... been dipping my toes in for a while now, and their Prime interface isn't good enough for what I want, should've likely found a third party interface but c'est la vie.

I've only been playing with it, but based on note performance (no lates, no defaults, only one prepayment, which if I can turn around and fund another note quickly again, no biggie in my book) I'm strongly tempted to start sweeping my excess cash to LC instead of into my brokerage accounts now.  Seems to be a solid investment choice for asset mix.  The number of slum loans also varies wildly, some days there's hardly any, or like recently where I had something like 40 loans that I wanted buy into and virtually all funded.  Good day that.

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Okay gotcha, I need to start dabbling with the lower grades for better returns as I am only getting about 15% but still much better than any savings account can offer although I don't put any emergency funds in there because it's not very liquid unless you want to take haircut.

[MrCrabs]

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@Middleswarth wrote:

When you fund a loan in Lending Club, do you see the borrower's information or is it just his or her stats?  I have a couple friends that loan money at LC.  I may want a loan from LC or Prosper at some point but I am not interested in sharing my financial information with them...

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It has some indenitfying information, but never shows names, addresses for obvious reason.(i.e don't want some psycho harrasing you for payment) I will state the company name you work for, time on the job, monthly income, credit score, etc but there are a ton of loans on there, I doubt they'll find yours and there is no way for them to search specifically for your loan as no names are mentioned, just the account number of the loan. Also if your funding is filled by others, they can't see them as you can only see your loans and whatever notes are sold on the secondary market. I can't look at loans I don't own or aren't for sale.

They could notice the state and job and assume it could be you, but with the amount of lenders and borrows, I say the chances of them stumbling onto yours is slim, I wouldn't really worry about to be honest.