Quote:
Originally Posted by StockJunkie
Great mentality, I am very hesistant to try sites like these and haven't found a good reason to. I think the world is finding out now that AA ratings aren't as reliable as they once were.
Any other big sites exist like prosper or is it the largest in this arena?
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To be honest, when I started there in September, I didn't put much credence in the credit score at all. I knew a long time ago that while it's a good benchmark, it as a standalone, may result in some form of misreading.
Manual underwriting is the only way that I come up with whether or not to take a chance on a borrower. Yes, I said the words "take a chance" since it's very high risk!!!! I use my own modified form of DTI. I also try to see if the data seems realistic. There was no guarantees that I will be right.
The D borrower I have pays me 18% on his money. So far, so good! He is an excellent credit risk since he borrowed $15,000 and had used up 95% of his "$800" available credit. The main problem is I have a lot of student loans and they didn't show up when I pretended to be a borrower. Also, it is off on my score by at least 15 points (have a score between 734 and 753) and it rates me at 719 so there could be upward and downward bias. Besides who, in their right mind, would borrow at 8.5% plus any associated fees if you can borrow from a credit card at prime - 1% if your credit is so good. The prime rate would have to rise to 9.5% or the credit card company would need to change the terms and conditions, but than you simply pay it off (if you can).
My drop on GOOG today as well as my daily expenses are more than if the borrower defaulted. In other words, I could care less. I bought GOOG at 416.47.