P2P Accounts (Update) - January 2015

On January 1st, our Lending Club account balance was at $9,092.76 (an increase of $11.94 from last month). We received $563.57 in payments from our active notes; of which, we received $60.59 in interest (an increase of $7.11/mo.).  The principal balance of our active notes was $7,950.03 (a decrease of $388.37 from last month), with $250.00 of loans in review or funding and a remaining cash balance of $904.57 (an increase of $150.21).  We are currently generating 5.00% on our seasoned notes. No loans were charged off this month.

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On January 1st, our Prosper account balance was at $8,834.32 (an increase of $76.32 from last month).  We received $476.63 in payments from our active notes; of which, we received, $63.46 in interest (an increase of $6.70/mo.). The principal balance of our active notes was $7,826.65 (a decrease of $70.34 from last month). We are currently sitting on a cash balance of $1,007.67 (an increase of $146.66), of which a total of $100.00 is  pending investments.  We are currently generating 7.57% on our seasoned notes, and 7.32% on all notes invested to date (includes profits from paid off notes).



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Total Value of Both P2P accounts: $17,927.08

($76.32 increase from last month)

 

Total Interest Earned in December: $124.05
($12.81 increase from last month)

 

Estimate Average Interest Earned: 6.28%

A few months back, we started to automate our note buying process but still continue to struggle putting our money back to work. I guess as along as we continue to see the account grow (albeit, at a slow pace!), we won't panic.  Plus, I'd rather buy notes at our desired criteria then to open ourselves up to riskier notes.  Worse case, we'll simply find another investment tool and put our money to work elsewhere.

Click below to view our peer-to-peer lending accounts history

PEER-TO-PEER LENDING ACCOUNTS

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NOTES CRITERIA:

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.