Author Topic: Loans paid off early. What % for you?  (Read 4767 times)

thezinfan

  • Full Member
  • ***
  • Posts: 119
    • View Profile
    • Email
Loans paid off early. What % for you?
« on: March 09, 2012, 10:46:30 AM »
Hi,

I put a blob of money in LC last June. After 9 months, over 7% of my notes (combination of 36 & 60 month) have paid off early. Seems like a high percentage. What kinds of rates are others running?

Newlyfrugal

  • Newbie
  • *
  • Posts: 9
    • View Profile
Re: Loans paid off early. What % for you?
« Reply #1 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.

thezinfan

  • Full Member
  • ***
  • Posts: 119
    • View Profile
    • Email
Re: Loans paid off early. What % for you?
« Reply #2 on: March 09, 2012, 06:20:20 PM »
Looks like I'm running a similar trend. Not really a problem other than the re-investment hassle.

Peter

  • Administrator
  • Hero Member
  • *****
  • Posts: 754
    • View Profile
    • Lend Academy
    • Email
Re: Loans paid off early. What % for you?
« Reply #3 on: March 11, 2012, 07:18:47 PM »
I started in August 2009 and of that initial investment I have had 50% pay off early. I really don't mind this at all because you are getting this high rate of interest for what is in effect a short term loan.
Publisher of the Lend Academy blog

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

DiligentiaLLC

  • Newbie
  • *
  • Posts: 30
    • View Profile
    • Email
Re: Loans paid off early. What % for you?
« Reply #4 on: March 13, 2012, 08:21:39 PM »
Prosper creates an incentive for repeat borrowers by reducing interest rates on the subsequent loans.  I would imagine this creates a peripheral incentive to payoff previous loans early.   Does anybody know if LC offers the same incentive for repeat borrowers?



Hi,
I put a blob of money in LC last June. After 9 months, over 7% of my notes (combination of 36 & 60 month) have paid off early. Seems like a high percentage. What kinds of rates are others running?

Peter

  • Administrator
  • Hero Member
  • *****
  • Posts: 754
    • View Profile
    • Lend Academy
    • Email
Re: Loans paid off early. What % for you?
« Reply #5 on: March 18, 2012, 08:15:41 PM »
My understanding is that Lending Club gives less weight to previous borrowers. It is just one factor in the entire credit picture - whereas with Prosper you are almost guaranteed a better rate as long as you have paid on time and your credit score is still above 600.

Prosper creates an incentive for repeat borrowers by reducing interest rates on the subsequent loans.  I would imagine this creates a peripheral incentive to payoff previous loans early.   Does anybody know if LC offers the same incentive for repeat borrowers?
Publisher of the Lend Academy blog

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