Lend Academy Network Forum

General Category => General P2P Lending Discussion => Topic started by: EmilyFoxSeaton on August 02, 2017, 08:52:23 AM

Title: Anyone use Upstart?
Post by: EmilyFoxSeaton on August 02, 2017, 08:52:23 AM
I only put in $500. 

The pros.
- so far no defaults though a couple of close calls
- You can fund it via your credit card. Great for converting credit card to cash.  And great for points.

The Cons.
- you are not allowed to control your notes. They do the investing for you.
- No liquidity. You can't sell your investments.

In the future I probably would use Lending Club.
Title: Re: Anyone use Upstart?
Post by: nonattender on August 02, 2017, 06:40:22 PM
I liked their original mktg pitch - "smart kid drops out of college to refinance crushing student loan debt of kids not smart enough to drop out" - but they've since 'gone establishment' and some guy who used to run Gmail, for a while, at goog, is now running things, last I heard.

Their securitizations appear to be holding up, so, they're doing something right on the underwriting side - but they're competing w/SoFi.

That's stiff competition.
Title: Re: Anyone use Upstart?
Post by: au88 on August 06, 2017, 09:44:20 PM
I have been using it and my returns are pretty bad. Barely getting above 2% IRR.
Title: Re: Anyone use Upstart?
Post by: AnilG on August 06, 2017, 10:12:51 PM
Damn, 17% default rate!! That is too high. What is the interest rate profile for your loans? Most probably 20%+. It is shame the guys who claim to bring Google expertise can't figure out how to do better.

I have been using it and my returns are pretty bad. Barely getting above 2% IRR.
Title: Re: Anyone use Upstart?
Post by: EmilyFoxSeaton on August 07, 2017, 06:39:05 PM
Damn, 17% default rate!! That is too high. What is the interest rate profile for your loans? Most probably 20%+. It is shame the guys who claim to bring Google expertise can't figure out how to do better.

I am getting less. Also one of my five loans has gone into grace. One has already repaid. Just glad I put in a small amount at first to see how it works. I would have presumed that them running the show would have gotten me better results.
Title: Re: Anyone use Upstart?
Post by: AnilG on August 07, 2017, 06:52:15 PM
A portfolio of 6 loans is no comparison with portfolio of 101 loans. The expectation of better returns is a reasonable expectation when you don't have control over how your investment is deployed.

I am getting less. Also one of my five loans has gone into grace. One has already repaid. Just glad I put in a small amount at first to see how it works. I would have presumed that them running the show would have gotten me better results.