Tuesday, November 27, 2007

I Can't Believe It's Not Linkfest

Tastes just like linkfest but with half the calories [*]

zcommodore: Loan size going up

I noticed that, while the number of loans being made had appeared to be going down, the size of loans is up significantly this month. (Note this graph shows only the first half of November.)

I suspect the reasons for this are that people with very good credit, like the ones I pointed out yesterday that were getting funded more now, usually ask for and receive much larger loan sizes. Also, if you have good credit, it is not common for you to ask for a small loan like $1-3K. You would simply use an existing short-term line of credit rather than pay the 1% origination fee to Prosper unless you are simply "trying out the borrowing side".

RateLadder: Portfolio Plans -- The Good, The Bad, and The Ugly

These portfolio plans are based on the slices of data… Which brings me to the ugly. There are almost certainly thin data issues . Readjustments can help, but Heisenberg rules this arena.

With the ugly out of the way on to the 1st good. Newbie small lenders. Over and over again I have watched newbie lenders come and go. They come in bid on 29% HR, get killed in defaults and leave. I would imagine that newbies will now come in and signup up for a portfolio plan. Viola! No more instant HR burnout.

Personal Loan Portfolio - Earn Money On Good Credit

As I browsed Prosper loans, I was surprised at the number of community members who would like to use their good credit score to borrow money in order to reinvest the money in other P2P loans. This is called leverage and by definition it does increase risk. Is it a strategy that is likely to payoff?

Boston Globe - Lending To Relatives? Read This.

As the credit crunch worsens, some financial planners say more people are turning to their families for help. That is spurring further growth of a small group of person-to-person lending websites, which make it possible to borrow money or lend to family members, friends, or strangers without having to manage the uncomfortable details of setting terms and collecting loan payments. The most popular of these are Virgin Money, Prosper.com, and Lending Club, but other such lending sites are on the way - most notably Zopa.com, a successful UK lending marketplace that for some time has promised to launch in the United States this year, and soon-to-be launched sites such as GlobeFunder.com, Loanio, and Community Lend (in Canada).

[*] - Prosperous Land does not encourage licking your monitor in an attempt to discover the buttery goodness contained in "I Can't Believe It's Not Linkfest". Some restrictions may apply. "I Can't Believe It's Not Linkfest" is void in Utah, which is unfortunate since they allow interest rates up to 36%.

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