Author Topic: "Check MY Rate" = Inquiry? Or no  (Read 15838 times)

core

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Re: "Check MY Rate" = Inquiry? Or no
« Reply #15 on: August 16, 2013, 12:23:18 PM »
I have to say that unfortunately, I'm finding the approval process somewhat frustrating and annoying.

I've heard similar stories from potential borrowers on complaint boards and such.  Do not go postal if you get denied; seems one thing they like to do is cancel the loan the day before the funds are supposed to hit your bank account.  For NO REASON.  No wonder we don't have enough borrowers around here.

What makes this all the more funny is this:

I have over 50k in various LC accounts

At least I find some humor in that.  They knew your identity well enough to take your deposits this whole time.  Maybe you should be asking them for proof of address.  They are the ones with a fake office building with their name on it!

rajuabju

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Re: "Check MY Rate" = Inquiry? Or no
« Reply #16 on: August 16, 2013, 12:42:21 PM »
Adding to my continuing verification process-

today i spent about 15 minutes doing a phone interview to further verify my identity. sounded like they were running another soft credit check on me, as some of the questions included:

1) do you currently have a car loan (no i dont, it was a trick question)
2) name of street you previously lived on

Also asked me for some other random (non-financial) info, such as why I want a 19k loan when my total outstanding debt is only 12k... i almost wanted to answer "whats it to you" but thought better of it.

I'm not at all opposed to all the verification LC is doing. I just find it to be handled in what is a seemingly very inefficient manner. And, what I consider to be perhaps the most important piece of info (verifying my income) they have not asked for at all yet.

rawraw

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Re: "Check MY Rate" = Inquiry? Or no
« Reply #17 on: August 16, 2013, 02:37:54 PM »
This seems pretty rigorous compared to what I thought it was.  I like it lol

Lovinglifestyle

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Re: "Check MY Rate" = Inquiry? Or no
« Reply #18 on: August 16, 2013, 09:33:59 PM »
I suppose asking for easier items first and separately makes it more efficient for LC.  Borrowers who disqualify themselves soon make later work unnecessary and free up staff work time.

I like it a lot too.  Some will still end up unable to pay later, but that can't be helped up front.

GS

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Re: "Check MY Rate" = Inquiry? Or no
« Reply #19 on: August 17, 2013, 10:30:03 AM »
During the process, were you ever asked for a "starting date" for the loan ... that is to say, can you specify that you'd like your payment to be due on the 1st?

New Jersey Guy

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Re: "Check MY Rate" = Inquiry? Or no
« Reply #20 on: August 17, 2013, 12:48:19 PM »
Don't forget to check your mail!  The "Little cup that needs filling" should be arriving shortly.
Return over deposits:   66.82%
IRR:   86.54%
As of April 30, 2014

rajuabju

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Re: "Check MY Rate" = Inquiry? Or no
« Reply #21 on: August 17, 2013, 10:32:44 PM »
Loan was approved today.

was not given any 'starting date' for the loan. i assume its today?

all in all, it was an interesting process being on the borrower side.

1) I'm surprised LC doesnt do any 'hard' inquiry check on credit
2) Surprised LC didnt do ANY verification of what I stated as my income.
3) the process was relatively easy, although the fact that it was done piecemeal seems somewhat inefficient to me... someone above pointed out the possibility that maybe some borrowers disqualify themselves early, which perhaps could be an explanation.

now lets see if i can invest the money back into LC and enjoy a decent spread and return

RT45

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Re: "Check MY Rate" = Inquiry? Or no
« Reply #22 on: April 12, 2014, 03:35:29 PM »
Rajuabju, would you mind posting the loan number? May try and pick up a few shares on Folio. :)

BruiserB

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Re: "Check MY Rate" = Inquiry? Or no
« Reply #23 on: April 12, 2014, 04:47:04 PM »
now lets see if i can invest the money back into LC and enjoy a decent spread and return

Will be interested to hear how this works out for you....at A1 Credit I assume your interest rate is somewhere in the 6-8% range?  Curious to know what effective rate you think you can invest the funds at?  If your effective earned rate after defaults, etc. is around 11% and you are in the 28% tax bracket (an assumption), then your after tax effective rate would be around 7.92% (and if you have state income tax to pay as well, your effective rate will be even lower).  So that's not leaving a lot of spread for you.

rawraw

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Re: "Check MY Rate" = Inquiry? Or no
« Reply #24 on: April 12, 2014, 10:54:50 PM »
Credit Card 0 APR advances are the way to lever up.

rajuabju

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Re: "Check MY Rate" = Inquiry? Or no
« Reply #25 on: April 20, 2014, 01:11:37 AM »
To give the update... Yes I was approved at the A1 rate, 6.03% // 6.78 APR

I then invested the funds back into LC (and Prosper) loans, averaging a return of around 13%, although I believe once both accounts season further, I'll be around 10% to 11%.

Then I realized that with my tax rate, this doesnt make sense. So I repaid the majority of the loan quickly, and rolled the leftover funds into a IRA account.

So now its working out for me... but I probably will repay the loan off soon, I didnt really need the $, was more for the experience.


rawraw

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Re: "Check MY Rate" = Inquiry? Or no
« Reply #26 on: April 20, 2014, 08:32:25 AM »
Told you credit card advances are the way to go.  Not enough spread otherwise

Half Right

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Re: "Check MY Rate" = Inquiry? Or no
« Reply #27 on: April 20, 2014, 11:49:31 AM »
Borrowing at LC to finance the purchase of notes might be enough to prove that you are now in the business of lending money. For tax purposes that might allow you to deduct the interest expense directly off your interest income and to expense the writeoffs against the income.

jennrod12

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Re: "Check MY Rate" = Inquiry? Or no
« Reply #28 on: January 30, 2016, 10:37:48 AM »
2.5 years later, I wonder if the process is still the same, especially the part about multiple requests for info, and not checking your income.  Has anyone gone through it recently who would care to post?

Thanks,

Jenn