October was somewhat flat month for us on Lending Club as we purchased a total of $677.17 worth of notes this month (a total of $450.00 in new notes and $227.17 notes from the trading platform). We received $690.48 in payments from our outstanding notes. We came close this past month towards are goal to immediately reinvest the money we collect each month. Glad we found some notes worth investing in this past month.
On November 1st, our Lending Club account balance was at $9,045.93 (an increase of $56.24 from last month). We received $690.48 in payments from our active notes; of which, we received, $62.48 in interest (an increase of $1.75/mo.). The principal balance of our active notes was $8,403.08 (an increase of $49.01 from last month), with $125.00 of loans in review or funding and a remaining cash balance of $517.85. We are currently generating 4.96% on our seasoned notes. No loans were charged off this month.
The month of September was somewhat of a disappointment for our Prosper account as we purchased a total of only $262.59. For the third month in a row, we didn't even find enough notes to reinvest our payments for the month. That meant our money didn't getting the immediate compounding effect that we always hope to achieve through our P2P accounts.
Work has continued to be pretty busy for me lately. Find just 5-10 minutes to do a quick search for new notes continued to be a challenge. If this doesn't change soon, I will need to set aside some time each night before bed to find notes because one of the biggest draw for us toward P2P notes is the ability to immediately re-invest our notes into more notes almost immediately each month. I will just missed the opportunity to buy the best notes as they are usually grabbed within the first 5-10 minutes after they are listed (*HINT* if you didn't already know, Prosper notes are listed at 9:00AM and 5:00PM each day). Nevertheless, notes that meet my criteria (see below) are hard to find these days. Therefore, we are also buying notes off the trading platform.
On November 1st, our Prosper account balance was at $8,760.47 (an increase of $88.96 from last month). We received $367.11 in payments from our active notes; of which, we received, $63.46 in interest (a increase of $2.82/mo.). Since we were not very successful in finding new Prosper notes to invest in, the principal balance of our active notes was $8,022.32 (a decrease of $104.82 from last month). We also had $50.00 of loans in review or funding and a remaining cash balance of $558.15. We are currently generating 7.40% on our seasoned notes.
Total Value of Both P2P accounts: $17,806.40
($145.20 increase from last month)
Total Interest Earned in October: $125.94
($4.57 increase from last month)
Estimate Average Interest Earned: 6.18%
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):
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