Reply to LendingClub Experience?

Forum Index » Money and Finances

Reply to "LendingClub Experience?"

Subject:

Emoticons





More smilies

Text Color: Font: Close Marks

[quote=Anonymous][quote=Anonymous][quote=Anonymous]I invested 2500 about 3 years ago, almost all my loans are paid off or will be paid off this month. I've received back ~2750.

The biggest hits are when people default early on into the loan. At least those can be tax write offs though. I also have one idiot who has consistently paid 1 month late so I've been getting hit with 18% "investor fees" every month for each payment on that account (it's usually 1% for on time payments). I don't like that they take that out my account. The borrower is supposed to have a late fee charged after 16 days late also "to compensate borrowers" but I've only seen a couple cents credited to my account when someone pays after being months overdue. Because of these issues I have not put more money in, I am taking money out as it comes in.

Here are some stats (unclear if this is inclusive or exclusive of fees paid):
Paid off loans (76):
   Investment: $1900
   Payments to date: $2193.50
Ongoing loans (17):
   Investment: $425
   Payments to date: $473.20
Defaulted loans (7):
   Investment: $175
   Payments to date: $91.31

Total Payments to date: $2758.01
   Principal: $2335.76
   Interest: $422.25
[/quote]

Wait, I'm confused.  If your total payments to date is $2758.01, then you would still have money invested in ongoing loans... meaning your total balance is actually higher, right?  If I understand the model correctly, in your case, you started with $2500, but each payment/interest received you're reinvesting back into new loans, so you would have staggered loan start/end dates with payments eventually coming in at all times.[/quote]

Out of all the loans, I have received the $2758. If the rest of the 17 decide to default tomorrow then my balance doesn't change. But that's not likely... So I'll probably end up closer to $2800 in payments. I chose my 100 original loans over the course of a month 3 yrs ago. I did not reinvest anything so most of those 17 ongoing loans mature this month. I do have 3 60 month loans that have 2 more years on them.

You get paid in cash and it sits in the account as such until you either transfer it back out of the account (what I did) or take the time to find a new loan to invest in. Keep in mind though that if paid on time, each loan pays ~ 0.80 a month so it takes a little while to get to the minimum investment amount (which I believe is $25) if you don't have that many.

And just because I only had 7 default loans doesn't mean all the rest paid on time. MANY of those other ones...probably a good 25% of them... were late at some point and it was nerve wracking wondering if they were just having a moment or were going to default too (especially at the beginning when you are most vulnerable). The other thing that sucks is early payoffs because you no longer earn interest on the amount of extra payment...a lot of my A loans did that and the interest rate was already low to begin with so I made hardly anything on those loans. I did best with B or C loans, though most of my defaults were also C loans so I'd probably stick to mostly B loans if I were to do it again.[/quote]

Options

	Disable HTML in this message
	Disable BB Code in this message
	Disable smilies in this message

Review message

Search Recent Topics Hottest Topics