ClearSky_CalmSeas
Dryer sheet wannabe
- Joined
- Sep 22, 2018
- Messages
- 12
I've been investing in one of the larger peer-to-peer lending sites since 2017. I'm not naming it because I don't want this to seem like I'm advertising for them, I am simply interested in other peoples' experience.
At first I was investing fun money, seeing what it was about, but I was consistently getting good returns so I found myself investing more and more until I was up to $20K. I never invest more than $25 per loan. At first I individually chose every loan and was very particular - they had to have a low debt to income ratio, I only invested in debt consolidation loans (never for new purchases) and 90% were in grade B or above. I preferred to loan to teachers, nurses, professionals. But as my balance grew I had to switch to auto-reinvest because it was too much work to select individual loans as the repayments flowed in so I had less control over the loans other than risk rating and term (# of years).
When COVID hit and I saw the huge unemployment impact I thought for sure I was going to lose a lot in defaults. I switched off auto-reinvest in early March and have been withdrawing all the cash as it builds up. Surprisingly, I currently only have 2% of my 900+ loans in late status.
Is anyone else a peer-to-peer lender and what have you experienced since the COVID crisis? Have you seen an increase in defaults?
At first I was investing fun money, seeing what it was about, but I was consistently getting good returns so I found myself investing more and more until I was up to $20K. I never invest more than $25 per loan. At first I individually chose every loan and was very particular - they had to have a low debt to income ratio, I only invested in debt consolidation loans (never for new purchases) and 90% were in grade B or above. I preferred to loan to teachers, nurses, professionals. But as my balance grew I had to switch to auto-reinvest because it was too much work to select individual loans as the repayments flowed in so I had less control over the loans other than risk rating and term (# of years).
When COVID hit and I saw the huge unemployment impact I thought for sure I was going to lose a lot in defaults. I switched off auto-reinvest in early March and have been withdrawing all the cash as it builds up. Surprisingly, I currently only have 2% of my 900+ loans in late status.
Is anyone else a peer-to-peer lender and what have you experienced since the COVID crisis? Have you seen an increase in defaults?