On February 1st, our Lending Club account balance was at $7,361.93. We had $2,353.61 in available cash and out outstanding principal stood at $5,143.71.
On February 1st, our Prosper account balance was at $10,196 ($107.33 more than our December report). We had $2,323.78 in available cash and out outstanding principal stood at $7,774.87.
All in all, our Prosper account is certainly seeing better performance than our Lending Club account, however, the struggle to find additional notes and having too much idle cash also exists for our Prosper account.
From our outstanding notes, we received $585.23 in payments from our active notes. From those payments, we received a total of $51.36 in interest and with no loans charged-off this past month. Surprisingly, we also managed to re-invest $250.00 into new notes this past month.
Similar to our Lending Club notes, the our Prosper notes are invested into a similar conservative mix. As you can from the pie chart above, majority of our notes are have an A or AA rating. Although we do have a few C rated notes, they make up a very small part of our investments. Unfortunately, like our Lending Club account, we have way too much idle cash. Hopefully, that continues to change as we slowly begin to withdraw the idle cash and invest into our new Loyal 3 account.
We are currently generating an Annualized Return of 6.81% on our seasoned notes and 6.41% on all notes.
Below are the updated numbers that include both Lending Club and Prosper accounts:
Estimate Average Interest Earned: 5.90%
Click below to view our peer-to-peer lending accounts history
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.