P2P Accounts (Update) - May 2015

On May 1st, our Lending Club account balance was at $9,280.02 (an increase of $53.93 from last month). We received $520.98 in payments from our active notes; of which, we received $55.48 in interest (an increase of $.30).  The principal balance of our active notes was $7,753.28 (an increase of $609.92  from last month), with $125.00 of loans in review or funding and a remaining cash balance of $1,501.74 (a decrease of $430.99).  We are currently generating 5.15% on our seasoned notes. No loans were charged off this past month.   

This past month we put forth a little more effort in trying to manually find notes to help lower our total cash flow in our Lending Club account. We found some notes in pre-funding through the standard browse loans option. But we found the bulk of our notes through the trading accounts simply buying up notes that others are looking to cash out early. We definitely don't have the time to do this consistently every month so hopefully the automatic investments start to pick up more notes soon. :) 

 

 

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On May 1st, our Prosper account balance was at $9,269.70 (an increase of $79.76 from last month).  We received $457.89 in payments from our active notes; of which, we received, $56.70 in interest (a decrease of $3.60). The principal balance of our active notes was $8,387.06 (an increase of $71.87 from last month). The last two months have been much better in terms of putting our cash flow to use.  Both from the bumping up our automatic purchases to $50 instead of $40 and simply because we had found more notes this past two months. Unfortunately, we are still currently sitting on a cash balance of $882.64 (an increase of $7.89), of which a total of $450.00 is  pending investments.  We are currently generating 6.41% on our seasoned notes, and 6.21% on all notes invested to date (includes profits from paid off notes).

 



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Even though we are not having great luck finding notes that meet our criteria (described below), the accounts continue to show some growth (albeit very small). 

Below are the updated numbers that include both Lending Club and Prosper accounts: 

 

Total Value of Both P2P accounts: $18,549.72

($133.69 increase from last month)

 

Total Interest Earned in February: $112.18
($3.30 decrease from last month)

 

Estimate Average Interest Earned: 5.78%

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.