I noticed that Lending Club is denying most loans. Since that time, Lending Club has started posting the rejected loan profiles on the statistics page. Scroll to the bottom of that page for the file. The data is missing several fields that you would use to evaluate a loan, but it is still interesting. For example, 285 applications of 6672 rejected loans had no FICO score. The highest Debt to Income ratio listed was 3626400%. That is not a typo — 3626400%.
Of course I am missing some key data, but one looked like a potentially good loan which was rejected for being over the 30% DTI.
$25,000.00 1/7/2008 family loan FICO: 815 DTI: 33.60% memphis TN
Lending Club may be passing up good money by rejecting loans like this one. In cases like this, it might be better to let lenders decide if they want to take the risk. However, on others I was glad to see the loans rejected because there was an amazing amount of complete junk that I don’t want to sort through when searching for loans.
Some of the applications are amazing – HUGE debt to income ratios, very low credit scores, and descriptions begging for money. Here are a few examples:
- My comment: Amount requested Date Description FICO DTI City State
- Not a good sign to need a loan to pay rent: $7,000.00 6/15/2007 Paying Rent & Credit Cards FICO: 533 DTI: 136.56% athens GA
- A 630% DTI and a 480 FICO: $15,000.00 6/24/2007 Loan To Payoff Pressing Bills FICO: 480 DTI: 680.31% Georgetown SC
- I agree you need help, but not from me: $5,000.00 10/17/2007 i need help FICO: 678 DTI: 271.20% poughkeepsie NY