Author Topic: PRIME reduces minimum to $5K  (Read 4706 times)

WES

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PRIME reduces minimum to $5K
« on: February 05, 2014, 07:11:24 PM »
Looks like LC isn't abandoning the small retail investor. Nice.

Bohb Daishi

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Re: PRIME reduces minimum to $5K
« Reply #1 on: February 06, 2014, 02:37:54 AM »
Correct me if I'm wrong, but didn't they say they were going to charge a fee for using Prime? I can't find anything on their website that says that, so they might have decided to make it free.
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core

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Re: PRIME reduces minimum to $5K
« Reply #2 on: February 06, 2014, 02:48:58 AM »
So instead of having to go to the web site and buy leftovers, you can have LC's automated stuff assign you the leftovers that they want you to have.  This sounds pretty awesome.  I'm glad they're letting us little people have access to this spectacular service now.  I don't mind paying an extra fee on top of it.  Funny how they keep lowering the limit every couple months.  With all the people beating down their doors, how can their servers handle it?  They should be raising, not lowering, the limits to curb the flood of eager investors.

Bohb Daishi

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Re: PRIME reduces minimum to $5K
« Reply #3 on: February 06, 2014, 03:07:28 AM »
Hey, rip on it all you want, but it did give me that perfect-credit 24% note about two months ago. Of course, the note's funding was cancelled by the borrower, but the point remains.

Other than that one, PRIME has yet to give me a single note. Granted, my recent purchasing of bankrupt notes at 95% has pushed my account balance to about 4 times larger than my initial deposit (consistently keeping my cash-to-balance ratio below 3%). But it would be nice if the service still worked even for "small" cash balances.
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core

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Re: PRIME reduces minimum to $5K
« Reply #4 on: February 06, 2014, 03:24:10 AM »
Hey, rip on it all you want, but it did give me that perfect-credit 24% note about two months ago. Of course, the note's funding was cancelled by the borrower, but the point remains.

Other than that one, PRIME has yet to give me a single note.

I see.  So you're happy with a service that has only given you one note in two months.  But it didn't even really give you that one.  Gotcha.  But how do you know that wasn't a fake note planted there by LC just to appease you?

Prime exists for one reason only.  And that is so Lending Club has an instant supply of suckers always at the ready.  In the beginning it was no doubt conceived to make sure no loans go unfunded (losing the $origination fee), but now they're trying to hook as many people as possible for the instant loans that they have planned.  Guaranteed funding.  Guaranteed origination fees.  The account limits were always simply a marketing gimmick.  (Only the next 20 callers!) 

Bohb Daishi

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Re: PRIME reduces minimum to $5K
« Reply #5 on: February 06, 2014, 03:47:44 AM »
Prime exists for one reason only.  And that is so Lending Club has an instant supply of suckers always at the ready.

Getting a little heavy on the conspiracy theories, are we? Maybe PRIME is actually owned/maintained by Amazon, who is secretly LendingClub's largest investor. The scheme goes like this:
1.) People max out their cards by purchasing stuff on Amazon.
2.) The people then take out a Policy Code 2 loan from LendingClub, which is 100% funded by Amazon.
3.) The people then max out their cards again, purchasing stuff on Amazon, further fueling the company's profits and stock price.
4.) Amazon collects outrageous amounts of interest from the Policy Code 2 loans and pays a small kickback to LendingClub.
5.) Amazon, now the largest and most profitable retailer, spends boatloads of money to hire politicians to approve the drone delivery program.
6.) Amazon now contracts with the NSA to use the company's drones for spying purposes, further fueling their profits.
7.) Jeff Bezos decides to spend his massive wealth building a secret lair underneath a volcano in the south pacific, where he develops a doomsday device.
8.) Bezos then holds the world hostage, forcing us to pay him trillions of dollars, bankrupting the US and European governments.
9.) Bezos then buys up the vast majority of bankrupt land in North America and Europe for a 95% discount, making him the sole ruler of the western world.
10.) China gets pissed off and launches nukes, starting Armageddon. We all die.


Don't say I didn't warn you.
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core

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Re: PRIME reduces minimum to $5K
« Reply #6 on: February 06, 2014, 04:22:04 AM »
It's no conspiracy.  An instant loan at the checkout counter cannot work if you have to wait minutes for it to be funded.  You must force investors to buy it; they must not have a choice.  Welcome to Prime.  If you can get the suckers to pay an extra fee for the "privilege" then that's just a bonus.

Also Lending Club hopes to take advantage of the elderly who may not be able to actively manage their own accounts online.  Possibly the handicapped too.  People in rural areas without internet access.  Orphans.  For shame.

WES

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Re: PRIME reduces minimum to $5K
« Reply #7 on: February 06, 2014, 01:06:25 PM »
PRIME isn't automated, or at least it wasn't back in December, when I last spoke with my LC rep. It's done manually by LC staff, and you can be quite specific about your parameters, more so than is available via the filters. Of course, as you increase your level of specificity, you will decrease the number of qualifying loans. I started using PRIME in December and did have a few loans selected on my behalf.

I have since paused PRIME investing, primarily because I have multiple accounts and like to avoid duplicate investments in the same loan. PRIME does not yet have that capability. But it's nice to know I can reactivate PRIME for those times when I'm traveling, ill, or just too busy to monitor my accounts myself.

As for the fee, there is no per loan investment fee. The original PRIME model did charge a flat fee on new money transferred to bring an account level up to the PRIME minimum, but this was waived in December.

Jomar

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Re: PRIME reduces minimum to $5K
« Reply #8 on: February 06, 2014, 01:47:22 PM »
I looked into PRIME when the option showed up on my homepage a month or so ago and ended up testing it out.  Surprisingly, I had full access with no apparent fees and my account balance is nowhere near $5,000 (the minimum was $10,000 at the time), so I'm not sure why I had access. 

I turned it off a few days ago because I wanted to be pickier about which notes I chose, but you can apply as fine a filter as you want.  I was using one that usually turns up 5-6 E-G notes when a new batch is posted, all of which tend to fund within a few minutes, and within a day or two of my cash balance exceeding $25 PRIME had usually put me in one of those notes.  Obviously it's not for the fully involved type of investors that frequent this board, but I think it has value for more passive investors, and based on my limited experience I disagree that it only gives you the leftovers that no one else wants, assuming you set your filters appropriately.