Author Topic: Where are the repeat borrowers?  (Read 5419 times)

Bilgefisher

  • Jr. Member
  • **
  • Posts: 61
    • View Profile
Where are the repeat borrowers?
« on: December 21, 2011, 12:25:06 PM »
It sure seemed like the repeat borrowers dried up in Dec.  Either that or more people have them on autoinvest.

My idle money is growing faster than I can invest it.

Any thoughts?

Peter

  • Administrator
  • Hero Member
  • *****
  • Posts: 754
    • View Profile
    • Lend Academy
    • Email
Re: Where are the repeat borrowers?
« Reply #1 on: December 22, 2011, 10:33:45 AM »
I would say the number of repeat borrowers are down but I am still finding loans to invest in. Do you have an Automated Quick Invest setup? With this setup I am finding 3-4 loans a day to invest in but a month ago that number was probably double that.
Publisher of the Lend Academy blog

See my returns here: http://www.lendacademy.com/returns

Bilgefisher

  • Jr. Member
  • **
  • Posts: 61
    • View Profile
Re: Where are the repeat borrowers?
« Reply #2 on: December 22, 2011, 01:08:00 PM »
Might just be the time of year.  My criteria is pretty tight.  I was finding 3 to 4 per day before prosper adjusted their settings.  It went to 1-2 per day.  Now I am finding maybe 3 per week.

Peter

  • Administrator
  • Hero Member
  • *****
  • Posts: 754
    • View Profile
    • Lend Academy
    • Email
Re: Where are the repeat borrowers?
« Reply #3 on: December 23, 2011, 11:12:56 AM »
The number of loans are a bit down right now - I just checked and there are only 166 loans to choose from right now. I expect in uptick in the New Year, I think you will find you will get back to 1-2 a day before the end of January.
Publisher of the Lend Academy blog

See my returns here: http://www.lendacademy.com/returns

Bilgefisher

  • Jr. Member
  • **
  • Posts: 61
    • View Profile
Re: Where are the repeat borrowers?
« Reply #4 on: January 17, 2012, 12:17:36 PM »
still very slow for repeat borrowers.  I setup an automatic investment to see if I am missing any loans that fit my criteria.

On the positive side, it has me spending time on lendstats researching other lesser known, low default loan criteria.

Peter

  • Administrator
  • Hero Member
  • *****
  • Posts: 754
    • View Profile
    • Lend Academy
    • Email
Re: Where are the repeat borrowers?
« Reply #5 on: January 23, 2012, 12:46:17 AM »
Bilgefisher, I am also experiencing a slowdown in investing with my repeat borrowers. There seems to be about 75% fewer repeat borrowers on the platform that meet my criteria. I have other new borrower criteria as well and these are investing as well as ever but so far this month I have found just eight loans that meet my sweet spot. Not sure why that is, but I will have to look into that further.
Publisher of the Lend Academy blog

See my returns here: http://www.lendacademy.com/returns

Bilgefisher

  • Jr. Member
  • **
  • Posts: 61
    • View Profile
Re: Where are the repeat borrowers?
« Reply #6 on: February 07, 2012, 07:47:56 AM »
There were over 500 repeat borrowers in my range last year.  Nearly 40 per month.  In the last 2 months there has been 6.  I wonder if they have changed any requirements besides that change last year.

DanB

  • Hero Member
  • *****
  • Posts: 665
  • A lie told often enough becomes The Truth!
    • View Profile
Re: Where are the repeat borrowers?
« Reply #7 on: February 07, 2012, 08:32:41 PM »
Maybe the potential repeat borrowers finally figured out that taking out that 2nd, or 4th loan out at 25% isn't that wise?  Oh wait, that can't be it. This is America after all.  :)


Peter

  • Administrator
  • Hero Member
  • *****
  • Posts: 754
    • View Profile
    • Lend Academy
    • Email
Re: Where are the repeat borrowers?
« Reply #8 on: February 12, 2012, 07:25:43 PM »
Bilgefisher/Dan,

I asked this question to Joe Toms, the chief investment officer at Prosper last week. Because I have noticed the continual reduction in available repeat borrowers. I was investing in 12- 15 repeat borrowers a week in October and November and now two weeks into February I have invested in exactly two this month.

What Joe said is that they promoted heavily to repeat borrowers in the last quarter of last year and most of the people who wanted a loan have already taken one. Now, they continue to promote to most borrowers with a good payment record once they are six months into their first loan but there are fewer of those when you compare that to the whole platform.

If you look on Lendstats you can see that the total percentage of repeat borrowers have dropped dramatically. From 36% of all loans in the 4th quarter of 2011 to just 22% in February. And most of these repeats are loans are AA-C which I rarely invest in.
Publisher of the Lend Academy blog

See my returns here: http://www.lendacademy.com/returns