Author Topic: Anyone use Upstart?  (Read 3587 times)

EmilyFoxSeaton

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Anyone use Upstart?
« on: August 02, 2017, 08:52:23 AM »
I only put in $500. 

The pros.
- so far no defaults though a couple of close calls
- You can fund it via your credit card. Great for converting credit card to cash.  And great for points.

The Cons.
- you are not allowed to control your notes. They do the investing for you.
- No liquidity. You can't sell your investments.

In the future I probably would use Lending Club.

nonattender

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Re: Anyone use Upstart?
« Reply #1 on: August 02, 2017, 06:40:22 PM »
I liked their original mktg pitch - "smart kid drops out of college to refinance crushing student loan debt of kids not smart enough to drop out" - but they've since 'gone establishment' and some guy who used to run Gmail, for a while, at goog, is now running things, last I heard.

Their securitizations appear to be holding up, so, they're doing something right on the underwriting side - but they're competing w/SoFi.

That's stiff competition.
A little nonsense now and then is relished by the wisest men.

au88

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Re: Anyone use Upstart?
« Reply #2 on: August 06, 2017, 09:44:20 PM »
I have been using it and my returns are pretty bad. Barely getting above 2% IRR.

AnilG

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Re: Anyone use Upstart?
« Reply #3 on: August 06, 2017, 10:12:51 PM »
Damn, 17% default rate!! That is too high. What is the interest rate profile for your loans? Most probably 20%+. It is shame the guys who claim to bring Google expertise can't figure out how to do better.

I have been using it and my returns are pretty bad. Barely getting above 2% IRR.
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EmilyFoxSeaton

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Re: Anyone use Upstart?
« Reply #4 on: August 07, 2017, 06:39:05 PM »
Damn, 17% default rate!! That is too high. What is the interest rate profile for your loans? Most probably 20%+. It is shame the guys who claim to bring Google expertise can't figure out how to do better.

I am getting less. Also one of my five loans has gone into grace. One has already repaid. Just glad I put in a small amount at first to see how it works. I would have presumed that them running the show would have gotten me better results.

AnilG

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Re: Anyone use Upstart?
« Reply #5 on: August 07, 2017, 06:52:15 PM »
A portfolio of 6 loans is no comparison with portfolio of 101 loans. The expectation of better returns is a reasonable expectation when you don't have control over how your investment is deployed.

I am getting less. Also one of my five loans has gone into grace. One has already repaid. Just glad I put in a small amount at first to see how it works. I would have presumed that them running the show would have gotten me better results.
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Anil Gupta
PeerCube Thoughts blog https://www.peercube.com/blog
PeerCube https://www.peercube.com