Comments on: Lending Club Statistics: Denying Most Loans

By: John Smith

John Smith — Sat, 23 Apr 2011 15:47:07 +0000

Chris Mills said: “If anyone who has a high FICO score wants a safe loan they can go to a bank to get one”

Or they can go to a P2P site. I think Chris misses the point – P2P is an alternative to going to the bank. Why would anyone prefer to go to the bank? You don’t have to be deeperate to use P2P lending.

By: Angel

Angel — Tue, 19 Apr 2011 13:05:41 +0000

Borrowers who are turning to P2P lending are not necessarily people who have been turned down by lending institutions but are people who can go elsewhere but choose P2P lending for either a better rate than what the financial institution offered or they prefer the structure of P2P lending investment. I was turned down by Lending Club for 1 very small delinquency from 7 years ago that was disputed and removed but is still visible to Lending Club. I contacted Lending Club by phone and email with no response. I’m an investor on both Prosper and Lending Club and I choose not to filter out the DTI’s of 30% or higher due to many borrowers have a household income but can only list your personal income when filling out a loan request. I see many borrowers get declined the loan with very low bank card utilization and DTI of 7% or less but at the same time another borrower will get funded with 99% bank card utilization with a DTI over 30%.

By: Struggling to Prosper | Bank Talk

Struggling to Prosper | Bank Talk — Wed, 30 Jun 2010 15:24:20 +0000

[...] I can attest to this problem. I’ve put in about $1,500 into Prosper, mostly in loans with loan amounts of between $50 and $125. I opted for borrowers that Prosper rated as “A” or “AA” credit, although I did sign up for one “C” borrower. Those are their highest grades. By doing that, I avoided the high interest rates that some of their loans bear. The highest rates were often yielding over 22 percent. The A and AA notes fell in a range of between 10.15 and 19.75 percent. Apparently, their standards are high. Only about 11 percent of applicants are approved for a listing. [...]

By: Chas Mill

Chas Mill — Wed, 21 Apr 2010 17:54:50 +0000

This comment is “right On”…thanks.

By: Chas Mill

Chas Mill — Wed, 21 Apr 2010 17:48:28 +0000

I like the idea of these lending clubs but I have to tell you from my brief review, it appears that no one wants to take a risk for a decent return. If you wnat to make a higher return then you will need to fund the higher risk loans and isn’t that the real purpose behind this “alternative” lending process? If anyone who has a high FICO score wants a safe loan they can go to a bank to get one. These “safe” borrowers are not the target market of the P2P lending process. You don’t offer the protections and benefits a bank offers to the borrower and the shareholders involved so you shouldn’t as a P2P lending expect your cake and be able to eat it also. Borrowers who are turning to P2P lending are “by definition” those individuals in many cases who have been turned down by the banks and other regulated institutions because they don’t qualify for the unsecured loans available. Although I think the idea of P2P lending is wrothy, there are just too many fuzzy lines and caveates and limits barring needy borrowers from getting loans that could help them get on their feet. Individuals who are seeking loans through a P2P lending organization are obnviously in need of funds and a structure should exist to help them as long as they can complete the paperwork and their privacy is assured. The FICO and other restrictions need to be better balanced against the nice return investors get once these loans are paid back. As I see P2P lenders are still getting a hefty return compared to other investments and for a comparable risk. So take the risk and fully fund loans for those people who need the funding. Stop nibbling around the edges to get the best of all worlds. Those seeking a loan through a P2P process and do not have prefect credit are your customers so provide the means to get them the laons they need and be happy. Afterall, from what I see you charge fees and high interest rates for the level of rsik per loan. So what’s the hype all about concerning wanting a safe investment. P2P lending is what it is –a risk for a greedy reward.

By: Edit

Edit — Sat, 20 Feb 2010 21:03:27 +0000

I must add that Lending Club removed my loan because of a small delinquncy which was 6 years old so as Rob mentioned “current delinquency” didnt apply in my case and they lost a good borrower. I dont think that was fair considering I have a 680 credit score and not late on anything for the past 6 years.

By: First Two Months Blogging P2P Lending | Personal Loan Portfolio

First Two Months Blogging P2P Lending | Personal Loan Portfolio — Fri, 07 Mar 2008 04:14:35 +0000

[...] Loan Portfolio Experience in P2P Lending on Prosper and Lending Club « Lending Club Statistics: Denying Most Loans PLR Interviews Fynanz CEO Chirag Chaman [...]

By: Eric Launches LendingClubStats.com | Personal Loan Portfolio

Eric Launches LendingClubStats.com | Personal Loan Portfolio — Tue, 29 Jan 2008 01:45:24 +0000

[...] Loans by Current or Late Status. Eric points out that this chart is currently useless because of the average age of the loans. I mentioned the same thing about the loan late rates posted on Lending Club’s site. [...]

By: Lending Club Posts Rejected Loan Profile Statistics | Personal Loan Portfolio

Wed, 23 Jan 2008 08:31:16 +0000

[...] Portfolio RSS feed or take a look at the site map. Thank you for visiting!Recently I noticed that Lending Club is denying most loans. Since that time, Lending Club has started posting the rejected loan profiles on the statistics [...]

By: Me vs Debt

Me vs Debt — Tue, 22 Jan 2008 12:30:37 +0000

Monday Morning Carnival Review…

Good morning. I had busy weekend and I’m just getting back into the swing of things. I’m going to start with linking to some of this weeks blog carnivals. I’ll be back with links to my favorite pos……

By: Amanda @ Me vs Debt

Amanda @ Me vs Debt — Tue, 22 Jan 2008 12:27:16 +0000

If they aren’t likely to get funded, its probably better that they are filtered out. Last time I went to lending club I was turned off by the interface. Maybe its worth checking it out again…

By: P2P-Banking.com Blog » P2P lending articles

P2P-Banking.com Blog » P2P lending articles — Mon, 21 Jan 2008 18:30:40 +0000

[...] Lending Club Statistics: Rejecting Most Loan Applications [...]