Stu’s Portfolio Report Update

In my post about Comparing the Lending Platforms, I outlined how I have been trying to deploy $2500 in Lending Club loans and was having trouble getting all my money funded into loans. When I updated in the last post, it had taken me 20 loans at that time to try to fund 10 loans and I successfully had funded 9 of them.

 

After the saga of trying to get a fully invested (well fully invested for me) portfolio of 10 loans, I finally got all 10 funded. It took me 22 loans attempted to get to 10. There is no question that the use of investing through APIs, Auto Investment tools and Institutions coming in to invest have slowed this process down for us, the little guy.  There is also no question that LC does tighter due diligence AFTER the loan is posted on the site for funding.  Anecdotal evidence is showing me that about 20-25% of loans are getting kicked out by LC before final funding.

I had a fully invested 10 loans at $250 for exactly 3 days. Why?

Because one of my highest interest loans, an E rated loan on LC with an interest rate of 22.47% decided to pay off early. That's right, after 1 payment, they decided to pay it all off. When a loan is paid off, it is called Termed Out, Terminated, or Paid off. In Prosper, its called Paid while in LC it's called Fully Paid. So now I have one paid off loan and another $250 to deploy into another loan, however, at least I got a month's interest before having to put it out again.

This is what it looks like on Prosper and below it on Lending Club.:

Paid Off Loans Prosper

Paid Off Loans LC

So this was a big week for me and my portfolio as I had 2 big happenings: I finally got fully funded and then I had my first loan pay off. The adventures continue but an early payoff is certainly way better than a default.

About the author

Stu Stu Lustman, the author of this post, is a Credit Analyst by trade trying to bring Commercial Credit Analysis techniques to the world of Peer to Peer Lending. Check me out on Twitter, LinkedIn and Google+

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