Prosper

[llecs]

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@XxRaVeNxX wrote:

I think Peer to Peer Lending such as prosper.com or lendingclub.com is a great idea to diversify someone's portfolio...

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I have to disagree as a lender on LC. Even though I used due diligence in researching the borrower, including knowing his/her FICO, I've had loans default with a FICO in the high 700s. Many of the borrowers seem to piggyback and some go to the lengths of defaulting. 20% of my loans have defaulted.

[XxRaVeNxX]

Is this something you still pursue, llecs?

[llecs]

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@XxRaVeNxX wrote:

Is this something you still pursue, llecs?

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About 18 months ago I put in $1000 just to play with it. I invested $100 into 10 borrowers, and then reinvested the gains $25 at a time as the payments returned. I stopped at 15 borrowers in total. I can see their TU FICO scores (well, a small range) from the point they borrow to present (soft AR pulls). Two of my borrowers with an A rating of FICOs in the upper 700s+ defaulted. Right after getting the loans, their FICOs plummited. One did do right and refinanced somewhere and managed to recover it, though the other is lost. About 4 other borrowers with rating across the spectrum were late 30-90 days. though continue to keep paying here or there. I just take out my money whenever I can and certainly won't invest anymore. I like the concept and also am a borrower, but I won't do that anymore.

[XxRaVeNxX]

Interesting....looking at other forms of investing. You got your original principal of $1000 back, correct?...but it's interesting to me that these people with higher scores than me(TU 680) have to resort to such means to get a loan, instead of a credit union or other means

Edit: No disrespect, see you also borrow as well as invest

[llecs]

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@XxRaVeNxX wrote:

Interesting....looking at other forms of investing. You got your original principal of $1000 back, correct?...but it's interesting to me that these people with higher scores than me(TU 680) have to resort to such means to get a loan, instead of a credit union or other means

Edit: No disrespect, see you also borrow as well as invest

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Haven't recouped yet. Still have about $600-$700 to go based on the payments received in relation to the org. $1000, but I know at this pace I'll break even within 3 years. 

It's a choice I made. In relation to current APRs, I came out ahead with my loan, but I'll never do that again.