Funding circle repayment warning

Brindas

A little pendantic there, over Savings / investment itwasnte. Do you understand the gist of the post REpayment warning . That was the reason I posted. As I said knew it was risky investment to put your savings in (did you like that ). Ha ha
I won't be posting again first and last time, just thought i'd try to give someone a heads up. didn't expect to get slagged off

Alexland

Bravepants wrote: »

it's basically sub-prime lending, as are ALL P2P lending companies

MarkCarnage wrote: »

Remember, they are lending when the banks aren't - and often for good reason.

Although I don't feel the reward is good enough these statements are a bit unfair. Similar to banks the P2P platforms are trying to blend a range of credit risks to include the good, bad and ugly to give an overall credit exposure. They are using the same credit scoring methods as banks and there is no reason they cannot be as successful as banks who occasionally hit similar problems.

I have myself borrowed from Zopa (to fill our ISA allowance during a period of lower income caused by maternity leave) on an attractive rate and it wasn't because we were refused credit elsewhere.

Alex

itwasntme001

Alexland wrote: »

Although I don't feel the reward is good enough these statements are a bit unfair. Similar to banks the P2P platforms are trying to blend a range of credit risks to include the good, bad and ugly to give an overall credit exposure. They are using the same credit scoring methods as banks and there is no reason they cannot be as successful as banks who occasionally hit similar problems.

I have myself borrowed from Zopa (to fill our ISA allowance during a period of lower income caused by maternity leave) on an attractive rate and it wasn't because we were refused credit elsewhere.

Alex

This maybe broadly correct (although banks will at least try to avoid lending to bad and ugly borrowers - whereas many P2P have shown it is willing to lend to these which is crazy), you do not know what proportion between the good, bad and ugly that banks lend vs P2P lend. It maybe the case that P2P lend equally across good, bad and ugly. Whereas banks for example lend 80% to the good and the rest to bad/ugly (in hindsight).

itwasntme001

Brindas wrote: »

A little pendantic there, over Savings / investment itwasnte. Do you understand the gist of the post REpayment warning . That was the reason I posted. As I said knew it was risky investment to put your savings in (did you like that ). Ha ha
I won't be posting again first and last time, just thought i'd try to give someone a heads up. didn't expect to get slagged off

Maybe i misunderstood due to your bad grammer/English skills.

Zero_Sum

Brindas wrote: »

A little pendantic there, over Savings / investment itwasnte. Do you understand the gist of the post REpayment warning . That was the reason I posted. As I said knew it was risky investment to put your savings in (did you like that ). Ha ha
I won't be posting again first and last time, just thought i'd try to give someone a heads up. didn't expect to get slagged off

And a bit more pedantry, but your warning had nothing to do with repayments. The repayments are working fine. Its selling your loans/investments you were really warning of, and its been an issue for some time which most on here were well aware of.

Thrugelmir

Alexland wrote: »

I have myself borrowed from Zopa (to fill our ISA allowance during a period of lower income caused by maternity leave) on an attractive rate and it wasn't because we were refused credit elsewhere.

What process was followed to vet you as a potential borrower?

Alexland

Thrugelmir wrote: »

What process was followed to vet you as a potential borrower?

Just the normal personal details, employment history, credit check, etc. It's interesting they are today advertising rates of 2.8% on a £10k loan (about the same as I previously received) but my personalized rate offer as an existing customer is now 9.9%. Maybe their tactic is to find new borrowers by offering low rates and they increase the rate on new loans to existing customers.

Alex

aroominyork

Does taking out a loan adversely affect your credit rating?

Alexland

aroominyork wrote: »

Does taking out a loan adversely affect your credit rating?

Yes it might affect the amount of credit that other lenders are willing to extend to you. I am slightly beyond caring as I have no further need for credit other than for financial optimization in stoozing credit cards and using up ISA allowances. I don't intend to ever apply for a mortgage, etc again.

Alex.