June was decent month for us on Lending Club as we purchased a total of $600 worth of notes this month. At the end of June, our Lending Club account balance was at $7,859.68. We received $507.48 in payments from our active notes in June; of which, we received, $50.74 in interest (an increase of $7.38/mo.). The principal balance of our active notes was $7,101.97 (an increase of $71.11 from May total), with $450.00 of loans in review or funding and a remaining cash balance of $332.20. We are currently generating 5.27% on our seasoned notes. We did have one loan that was charged off this past month. The remaining balance of the loan was $21.40.
June was also a decent month for us on Prosper as we purchased a total of $775.00 worth of notes this month. At the end of June, our Prosper account balance was at $8,361.92 (an increase of $450.99 from our balance at the end of May). We received $403.78 in payments from our active notes in June; of which, we received, $57.10 in interest (an increase of $3.41/mo.). The principal balance of our active notes was $7,847.19 (an increase of $422.21 from May total), with $50.00 of loans in review or funding and a remaining cash balance of $488.21. We are currently generating 7.55% on our seasoned notes.
In an effort to grow both P2P accounts, we are currently re-investing all of the payments that we receive from our notes. And when the cash balance is low, we are continuing to add more funds to the account so that we may constantly purchase new notes.
Our family has been investing in peer-to-peer lending notes for approximately 3 years now. And because of past defaults, we have now refined our search criteria. As a result, we now take a slightly more conservative approach with the notes we invest in. Currently, we only invest in notes that fit the following initial criteria:
- Amount requested is under $6,000;
- Credit score of 700 or more; and
- Monthly payment will be less than $250.
From those we evaluate (Employment Status):
- The borrower's income (prefer > $50,000 but depends on amount requested);
- Length of employment (must be > 2 years); and
- Their occupation (certain occupations, known to be more secured, are more desirable).
We then look at (Ability To Pay):
- Their credit history;
- Revolving balance; and
- Debt to income level, etc.
We do not invest in any notes where borrow is currently delinquent, of if they have had a public record within the last 12 months. We also do not invest in notes where the description provided is "Other." We feel that there is too much risk involve when the borrower is not willing to reveal why he/she needs the money.
Click below to view our peer-to-peer lending accounts