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Messages - Newlyfrugal

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General Lending Club Discussion / Re: How can Lending Club improve?
« on: March 13, 2012, 03:42:19 PM »
Why does it take four days to transfer funds from my bank account to my LC account? 

It takes only a day or two for money to get to my brokerage accounts and to my online savings accounts.

It would be great if LC could make my cash available in less than four days.

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Investors - LC / Is $75 investment preferable?
« on: March 09, 2012, 05:11:38 PM »

A year or two ago, I read a comment in a blog.  The poster suggested that we invest $75 in each loan in order to reduce fees.  He ran the figures and determined that a $75 investment at LC fares better because the fees come out to be less.   Does anyone know about this?  If I find the comment again, I will post it here.  I do not know how to determine whether the poster is correct.

Usually I re-invest $25 as it becomes available.  But I just added $5k to my LC account and wonder if I should be investing $75 in each loan.   I used to invest in A and B loans, but now choose lower grade loans for the higher returns.  My risk tolerance is above average and I invest only enough money that I can afford to lose. 

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Investors - LC / Re: Loans paid off early. What % for you?
« on: March 09, 2012, 02:13:06 PM »
I started investing in LC in Sept. 2010.   To date, 11% of my notes paid off early.  I don't need the cash available, so I simply re-invest in new notes.  Initially, I picked A and B notes, but lately, I am investing in lower grade notes to get higher returns.

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General P2P Lending Discussion / Re: Playing both sides?
« on: March 04, 2012, 10:39:02 AM »
A few years ago, I participated in credit card arbitrage, in which I took out no-fee balance transfers and put the money in a checking account which earned 5% interest.  Sadly, those days of "high" interest from banks are gone.  So the CC arbitrage is less profitable and no longer enticing to me.

I was curious about "blenders" doing P2P arbitrage, which I never considered before.  I don't recommend P2P arbitrage because the risk is much higher than CC arbitrage (where the money is safe in a bank account.)  However, if you are inclined to try such arbitrage, the key is this note from Derek in My Dollar Plan:

"Note that I have enough cash held in reserve from other sources that I am able to cover my loan should the social arbitrage world end tomorrow, so my sense of risk is appropriately higher than someone who does not have that.

Read more: http://www.mydollarplan.com/social-lending-arbitrage/#ixzz1oA8nasEV"

If you have enough funds in reserve to pay off your own loan at a P2P lender and can take the risk of losing money due to charge offs, then more power to you.  I have such reserves, but do not care to do P2P arbitrage.

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Investors - LC / Re: Q&A for Borrowers
« on: March 04, 2012, 10:20:52 AM »
I pass on loans where debtors ask for $20k or $35k, but offer no description of their loan and if someone asks a question, the debtor answers generally but does not offer much detail.   I realize that $25 is not much investment, but when I loan to someone, I prefer them to put in a little effort.   How does everyone else feel about this?  Do you go ahead and loan to such debtors if you get high ROI?


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Investors - LC / Re: Account Balance
« on: March 04, 2012, 10:13:35 AM »
Thank you, Peter, that makes sense.  I appreciate the time and effort that you put into the forum and blog. 

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General Lending Club Discussion / Re: How can Lending Club improve?
« on: February 27, 2012, 10:04:44 PM »
It would be nice if LC gave us the option to "hide" a listing that we reviewed and are not interested in.   After I set my filters, I look at some listings for loans.  I can weed out the ones I don't like, but can't "hide" them from the list of filtered loans.  I don't want to keep reading the same listing again and again.

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Investors - LC / Re: Account Balance
« on: February 27, 2012, 09:49:15 PM »

I asked Lending Club about when they pay accrued interest to my account.   They replied:


"Thank you for your e-mail. You will receive payments in accordance with the payment due date on the loan. For example, if you own a note that has a payment due date of 2/27/12, the payment will be pulled on that date and the accrued interest for that individual note drops to zero. The payment will take 4 business days to process. After those 4 business days have passed, the payment will post to your account as principal and interest received. Since you own portions of multiple loans, these payments are processed through out the month, which causes the values to fluctuate.  Please let us know if your have any other questions or concerns."

The red highlighting is mine.  Can someone explain to me what this highlighted area means?  When the accrued interest for that individual note drops to zero, does LC add that interest to my "cash available?"

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Investors - LC / Re: Account Balance
« on: February 21, 2012, 05:11:19 PM »
I invested in LC in Sept 2010 and now have 301 loans.  When I log on to my account in the a.m, nothing happens to my cash available amount.  By 2 pm CT, I notice that LC withdraws some money, as shown in "pending withdrawals."  By 4 pm CT each day, my "available cash" begins to increase in increments.  I don't know exactly when the available cash stops increasing each day, but I have seen increases added to my account as late as 10 pm CT.  Does everyone else have the same experience?

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