Analyzing My Late Loans | P2P Lending, Peer to Peer Lending, People to People Lending

#1Adi Ron 09.26.07 at 8:07 am

So color me stupid, but I can’t guess what jumped at you? What was it that we the lenders should stay away from?

#2Stephen Wilson on 09.26.07 at 8:27 am

Yes, please throw us a bone here. What was the extended credit information that the lates had in common?

#3Kevinon 09.26.07 at 8:31 am

I don’t belive you are stupid. You read this blog afterall. :)

The point of the post was to be self reflective in your lending nature.

While I will reveal the criteria that has been the majority of my lates eventually, you should realize that I have 15 standing orders laddered on and covering many different profitable slices of Prosper loans. The fact 1 particular critera stuck out to me might be a product of some of my other criteria choices. For example, extremely high rates or a lack of DTI requirements or …

I encourage you to use the Prosper lending performance tool and understand the implications of when certain data was added to Prosper.

#4Adi Ron 09.26.07 at 10:00 am

Okie.
Actually, I noticed the requirement some time ago on the prosper performance calculator and added it to my search criteria. I don’t believe in standing orders, since I seem the most unusual things and no matter how strict my criteria is (with Safest setting right now returing 3-5 listings on average), I still would not blindly invest in these listings without reviewing wording, photos and some other subtle signs which I hope will help weed out the “bad seed”. Only time will tell, of course.
Unfortunately, I did at least half of my original loans without looking at that part of the criteria, so it will be nice to reflect back and compare the two groups in a year or two.

#5Kevinon 09.26.07 at 10:09 am

I think my standing order based impartially on credit judgment is better than my own personal review. While my search criteria is equally tight, I find I am a sucker for a good sob story and often get in at a lower rate or for more money that I want to.

Plus manually looking at listing would take all day. I prefer to Prosper Automatically: http://www.rateladder.com/2007/04/25/automatic-prosper/

#6pjz on 09.27.07 at 5:45 pm

What are you talking about “manually looking at listing would take all day”? Just do an advanced search with your tight criteria and then do a sanity check on the returned listings before you bid. Right now this procedure takes me no time at all since my tight search criteria currently finds zero matching listings. :-)
Looking forward to the commonality you found.

#7pjz on 09.27.07 at 5:54 pm

I do see a commonality among your late loans but probably not the one you are thinking about. Most of the late loans have a very high interest rate with respect to its credit grade.

#8pjz on 09.27.07 at 6:43 pm

I think I got it. It is bad when your # of current credit lines are less than the # of open credit lines. However, I did not have have time to find one of those among your lates.

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