Investing with a filter is one of the key ways that we can earn a higher return on Lending Club and Prosper. In today's video we use the NickelSteamroller.com website to create a filter for ourselves from scratch, going on to use it on Lending Club's platform.
Five weeks ago the London-based newspaper Financial Times broke a story that Wells Fargo, one of the largest banks in the world, had issued a memo banning their staff from taking part in Lending Club and Prosper (full article). The key line of the Wells Fargo memo is:
“... peer-to-peer lending is a competitive activity that poses a conflict of interest.”
In peer to peer lending, it can be confusing to choose a few loans for investment from among the hundred that are available. In this Whiteboard video, we break down the concept of filtering a platform's available loans so as to discover those with the greatest potential.
I know what it is like to look for a loan. While you usually have your finances in order, a sudden situation has caused you to need a little extra cash. Perhaps you are having a medical emergency. Maybe you are trying to pay off your credit cards and want to consolidate your debt at a lower interest rate.
Investors on Lending Club and Prosper who diversify their accounts in two hundred notes can reasonably expect a return between 5-10%. In today's Whiteboard we look at how we can do our best to be on the higher side of that spectrum.
When peer to peer lending began in the US in 2006-07, an amazing thing happened. The platforms, both Lending Club & Prosper, launched their sites with a commitment to keep their loan history open to the public. This was totally unprecedented, particularly within an avenue as fickle and as large-scale finance.
While finding and investing in loans is the glory of peer to peer lending, there is still a lot more to the overall picture. In today's Whiteboard, we explore the various upkeep associated with having an investor account at Lending Club.
For people who are looking for a loan, Discover can seem like a good option. By simply going to their website and submitting an application, you have the ability to easy loans for thousands of dollars. Unfortunately, many people do not realize that there are better options out there. Today we will look at Discover personal loans, showing how a peer to peer loan through Prosper is a much better option.
Lending Club has made it easy to log into their site and invest in peer to peer loans. In today's video, we examine the complete investment process at Lending Club from top to bottom, highlighting the two different ways to pick loans - both letting Lending Club find loans for us and while also filtering the available loans ourselves.
As we continue to produce content to aid people who are looking to get started in peer to peer lending, I continue to be startled by the number of investors who have negative experiences with Lending Club or Prosper as a result of not diversifying their account.