November was somewhat flat month for us on Lending Club as we purchased a total of $422.13 worth of notes this month (a total of $300.00 in new notes and $122.13 notes from the trading platform). We came close to our goal of reinvest the money we collect each month. And this past month, many of the notes purchased (outside of the trading platform) was done through an automatic investment program. This was the first month and so far so good. It has definitely saved me a bunch of time...time I really don't have because work has gotten really busy for me lately. I received a promotion back in August but I'm definitely earning every penny of that promotion.
On December 1st, our Lending Club account balance was at $9,092.76 (an increase of $46.83 from last month). We received $489.18 in payments from our active notes; of which, we received $53.48 in interest (a decrease of $9.00/mo.). The principal balance of our active notes was $8,338.40 (a decrease of $64.68 from last month), with $125.00 of loans in review or funding and a remaining cash balance of $754.36 (increase of 236.51). We are currently generating 5.03% on our seasoned notes. One loan in the amount of $5.57 was charged off this month.
Again, November was another disappointing month for our Prosper account as we purchased a total of only $284.86. For the fourth month in a row, we didn't find enough notes to reinvest our payments for the month. And unlike Lending Club, we unfortunately didn't even come close to reinvesting the money we collected last month meaning our money didn't get the immediate compounding effect that we strive to achieve through our P2P accounts. We are started the automatic investing for Prosper towards the middle of the month so we are hoping that in December, we begin to see things turn around a bit. Either that or I will need to somehow find the time each night to look for notes.
On December 1st, our Prosper account balance was at $8,758.00 (an decrease of $2.47 from last month). We received $441.35 in payments from our active notes; of which, we received, $57.76 in interest (a decrease of $5.70/mo.). Since we were not very successful in finding new Prosper notes to invest in, the principal balance of our active notes was $7,896.99 (a decrease of $125.33 from last month). We are currently sitting on a cash balance of $861.01, of which a total of $175.00 is pending investments and $681.01 available to invest. We are currently generating 7.18% on our seasoned notes.
Total Value of Both P2P accounts: $17,850.76
($44.36 increase from last month)
Total Interest Earned in November: $111.24
($14.70 decrease from last month)
($14.70 decrease from last month)
Estimate Average Interest Earned: 6.10%
Click below to view our peer-to-peer lending accounts
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.