Comments on: P2P Loans and Baseball http://www.debtkid.com/p2p-loans-and-baseball Debt Kid - I'm Getting Out of Debt Sat, 21 Nov 2009 02:42:10 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: Cathy http://www.debtkid.com/p2p-loans-and-baseball/comment-page-1#comment-8487 Cathy Sat, 05 Apr 2008 18:45:25 +0000 http://www.debtkid.com/p2p-loans-and-baseball#comment-8487 Prosper.com has a fairly high default rate because it has a low limit on the FICO score of who can be a member. 520 - which is in the sub-prime zone. I just joined LendingClub.com, which has a higher minimum score, 640, which is just a hair below the prime loan category. Low rate loans for even people with prime scores is becoming very hard to find. I have an excellent FICO score, and my credit cards rates are increasing and averaging about 18% now, when 5 years ago it was about 9%. The borrowers on Lending Club are generally people like me - middle class income with excellent payment history and are looking to consolidate their rising credit card rates to a lower fixed rate. I do my research - I only lend small amounts and spread it out among many loans. I read each borrower's requests, look at their credit scores, payment history, and debt to income ratio. Right now I'm playing it rather conservative and won't loan to anyone with less than 740 FICO. People with credit scores that high tend to be people who work aggressively to keep those scores high (I know I do). They payout on Lending Club seems lower than Prosper.com, but I think the risk is lower and I feel more comfortable with it. I like that I get to read the stories and can help people get out of credit debt or improve their small business, which traditional banks often won't do. I like that I'm helping real people, rather than brokers. Prosper.com has a fairly high default rate because it has a low limit on the FICO score of who can be a member. 520 – which is in the sub-prime zone. I just joined LendingClub.com, which has a higher minimum score, 640, which is just a hair below the prime loan category. Low rate loans for even people with prime scores is becoming very hard to find. I have an excellent FICO score, and my credit cards rates are increasing and averaging about 18% now, when 5 years ago it was about 9%. The borrowers on Lending Club are generally people like me – middle class income with excellent payment history and are looking to consolidate their rising credit card rates to a lower fixed rate.

I do my research – I only lend small amounts and spread it out among many loans. I read each borrower’s requests, look at their credit scores, payment history, and debt to income ratio. Right now I’m playing it rather conservative and won’t loan to anyone with less than 740 FICO. People with credit scores that high tend to be people who work aggressively to keep those scores high (I know I do).

They payout on Lending Club seems lower than Prosper.com, but I think the risk is lower and I feel more comfortable with it. I like that I get to read the stories and can help people get out of credit debt or improve their small business, which traditional banks often won’t do. I like that I’m helping real people, rather than brokers.

]]> By: Chris in Boston http://www.debtkid.com/p2p-loans-and-baseball/comment-page-1#comment-8483 Chris in Boston Sat, 05 Apr 2008 14:59:38 +0000 http://www.debtkid.com/p2p-loans-and-baseball#comment-8483 P2P lending is an easy way to lose money. Take a much closer look at the facts and you will see that prosper.com loans have a very high default rate after a few months. This is not a good way to make money, and certainly the yields do not offset the risk to make it worth while. There are lots of reports coming out now about P2P not living up to the promises. Run fast, run far. This is NOT a way to get decent gains. Extremely high risk. Put your money somewhere safe! P2P lending is an easy way to lose money. Take a much closer look at the facts and you will see that prosper.com loans have a very high default rate after a few months. This is not a good way to make money, and certainly the yields do not offset the risk to make it worth while. There are lots of reports coming out now about P2P not living up to the promises. Run fast, run far. This is NOT a way to get decent gains. Extremely high risk. Put your money somewhere safe!

]]> By: Shel http://www.debtkid.com/p2p-loans-and-baseball/comment-page-1#comment-8468 Shel Fri, 04 Apr 2008 17:22:49 +0000 http://www.debtkid.com/p2p-loans-and-baseball#comment-8468 Sounds fun, they do have the coolest stadium! I'm totally jealous of you Seattle people with all your amazing venues. If I lived there I would never get anything done between the outdoor opportunities and all of the shows. Congrats on the carnival! Sounds fun, they do have the coolest stadium! I’m totally jealous of you Seattle people with all your amazing venues. If I lived there I would never get anything done between the outdoor opportunities and all of the shows.

Congrats on the carnival!

]]> By: Pinyo http://www.debtkid.com/p2p-loans-and-baseball/comment-page-1#comment-8461 Pinyo Fri, 04 Apr 2008 12:56:16 +0000 http://www.debtkid.com/p2p-loans-and-baseball#comment-8461 Really? that was your first carnival? In that case, welcome to the club. :-) PS: And thank you for the nice thing you said about me. You're a scholar and a gentleman. Really? that was your first carnival? In that case, welcome to the club. :-)

PS: And thank you for the nice thing you said about me. You’re a scholar and a gentleman.

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