Author Topic: Two month full paid...is this common?  (Read 6057 times)

heikkie

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Two month full paid...is this common?
« on: December 09, 2015, 02:27:36 AM »
first  month delay payment, second month schedule a full pay....

heikkie

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Re: Two month full paid...is this common?
« Reply #1 on: December 09, 2015, 02:30:09 AM »
Also his credit score went straight up to 820

kbenson99

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Re: Two month full paid...is this common?
« Reply #2 on: December 09, 2015, 08:40:40 AM »
Very common.  I have 347 loans that have prepaid with a few on the first payment.

See https://www.peercube.com/blog/post/19 which details impact of prepayments.

yojoakak

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Re: Two month full paid...is this common?
« Reply #3 on: December 09, 2015, 10:48:08 AM »
At least they limit their fees now. They used to charge you the full 1%, often making it a money loser.

lascott

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Re: Two month full paid...is this common?
« Reply #4 on: December 09, 2015, 11:16:09 AM »
At least they limit their fees now. They used to charge you the full 1%, often making it a money loser.
That was a great thing.  Sometime between March 16, 2015 and July 30, 2015 according to the wayback machine. My google search for the announcement was fruitless.

https://www.lendingclub.com/public/rates-and-fees.action
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« Last Edit: December 09, 2015, 11:21:07 AM by lascott »
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Rob L

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Re: Two month full paid...is this common?
« Reply #5 on: December 09, 2015, 02:15:28 PM »
Before LC cut us a break this was the impact of loan prepayment:



Back then prepay in the first 12 months could be a really bad thing. The lower the interest rate of the loan the worse it was.
Now I suspect a prepay I the first 12 months is less costly than one in the 12 - X month range depending on interest rate.

Prepayments aren't something worth worrying about now. They happen a lot and it isn't worth trying to avoid them.

Ran

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Two month full paid...is this common?
« Reply #6 on: December 09, 2015, 02:54:54 PM »
One place where prepay matters is paying premium to buy Folio notes.

lascott

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Re: Two month full paid...is this common?
« Reply #7 on: December 09, 2015, 07:32:05 PM »
<snip>
The lower the interest rate of the loan the worse it was.
<snip>
Anil's PeerCube article showed some great graphs on this (A & B grades) pointed to above: https://www.peercube.com/blog/post/19 -- Excellent post that probably opened some eyes/mouths.
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Rob L

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Re: Two month full paid...is this common?
« Reply #8 on: December 10, 2015, 09:12:02 AM »
Note that Anil wrote this PeerCube article before LC limited their charges in the first 12 months so keep that in mind when reading it.
Maybe it played a role in LC's decision to fix the problem. Or maybe some big dog investors complained.
Sure wish we could identify repeat borrowers as Anil suggested as one of the article's key take-aways. That would be helpful and interesting!

jennrod12

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Re: Two month full paid...is this common?
« Reply #9 on: December 10, 2015, 09:19:00 AM »
If you look at the payment history of the paid off loans it shows the investor fees.  Are there other fees besides those?

I had a loan that paid off on the first payment.  I made $.01, and they didn't take out any investor fees.  Since I pick my loans manually, that's not a very good return for my time, but technically I didn't lose money.

Jenn

thezfunk

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Re: Two month full paid...is this common?
« Reply #10 on: December 11, 2015, 03:02:43 PM »
I will take a prepay over a default any day. 

rawraw

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Re: Two month full paid...is this common?
« Reply #11 on: December 12, 2015, 02:32:53 PM »
If you look at the payment history of the paid off loans it shows the investor fees.  Are there other fees besides those?

I had a loan that paid off on the first payment.  I made $.01, and they didn't take out any investor fees.  Since I pick my loans manually, that's not a very good return for my time, but technically I didn't lose money.

Jenn
People pay off early.  People don't pay at all.  Focus on the return on the pool of loans, not each individual one.  You'll lose some and hopefully win more