Author Topic: Do you consider $35,000 a red flag?  (Read 10188 times)

investforfreedom

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Re: Do you consider $35,000 a red flag?
« Reply #15 on: May 10, 2013, 03:57:38 PM »
I did a quick look at loans starting 07/2009 and ending 04/2013 using Lendstats:

For credit card and debt consolidation 60-month loans between $30000 and $35000, the loss rates are as follows:

D: 8.5%
E:  9.7%
F: 11.3%
G: 10.7%

For the same loan categories of 60-month loans up to $29999, the loss rates are as follows:

D: 7.9%
E: 9%
F: 10.9%
G: 11.8%

It seems that $30,000-$35000 D-F loans are generally speaking just a tad riskier than smaller loans, but by not much. 

llamoure

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Re: Do you consider $35,000 a red flag?
« Reply #16 on: May 12, 2013, 11:00:37 AM »
GS, You're only excluding 4 months of Current Loan data. Because of the rapid pace of loan origination on LC and the time it takes to default, I usually exclude a lot more of the Current loans (I keep the default and charged offs).

A loan that issued in 12/2012 wouldn't have a payment due until 1/2013 and would only have 3 payment opportunities to go bad, the most it could do would be LATE (31-120 days). I usually exclude 15 to 17 months. 

LL
Herndon, VA

Bilgefisher

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Re: Do you consider $35,000 a red flag?
« Reply #17 on: May 14, 2013, 09:59:35 AM »
I am more concerned what LC is doing about the no pay defaults.