Lots of good notes to fund on LC this morning, I funded four notes with an average interest rate of 26.5%, all had a credit score of 680 or better.
they are looking for $13,550. Per Lending Club, it is rated an F. It has an interest rate of ~27%, yet the debtor has a FICO of 735-799, a monthly gross income of $6,250, and only a 13% debt to income ratio.
I have 76 notes and growing, I have one of them delinquent right now. I'm sure I'll have my fair share as most all the notes I invest in now are over 20% interest rate. Oddly enough the one have delinquent is at 13%.
They hand the note over to a collection agency, but pay a percentage of the note in doing so. The note may eventually fall to bankruptcy proceedings, where if any money is available some of the loss may be averted.I have never used LC. If the borrower defaults, does LC exercise any remedies on your behalf?
+1I invested in hundreds of LC notes, with about $250k, over a multi year period and the long term effective interest rate was ~6% with great payment in the early days and huge defaults later. I won't do any more unsecured lending. People will pay 8-10% on secured loans for real estate, cars, etc. so I don't see a need to trust anyone's good intentions when I can have real collateral instead.
I tried to do this and once I signed up I got a notification that I was not allowed to lend money by law because I live in North Carolina and North Carolina considers it.. I don't know what the wording was exactly but I'm guessing 'shady lending' so I could not invest. Anyone else have this issue? It was a little shocking given how prevalent this has become.