Just wondering? I seen so many discussuon, so many different analysis, some of them are even contradicting, some of them does not even make sense.
For example, is loan amount correlated to default rate and ROI?
Some people said that lower amount lead to higher default rate, but some will never invest in loan more than certain amount, say $5000 or $10,000.
What is your taught?
So far I go by my intuition, I stated 1 month ago, therefore aside from reading blogs and analysing data from Prosper stat or NRS, I can only go by what is common sense to most people. However, I understand that this can sometime be counter-productive, as it is not evidence-based. But again, is evidence-base analysis really better than some common sense criteria?
So far my favorites are:
1. No delinquencies or public records.
2. Have a job.
3. Make more than $5000 per month.
4. Credit line no earlier than 1980, reason because person may be too old and not able to pay back. (I am not sure if such a thought is reasonable.)
5. Work in the military, seems like a good one.
6. Work for at least 3 years.
7. Own a house or at least have a mortgage.
8. Loan less than $35,000. (I am worry some people just want to borrow the max amount and run away.)
9. Have a good description. Have a goal in the description, my favorites are trying to improve credit score, be debt free, explain how you can and want to pay the loan.
My least favorites:
1. No job. It makes me wonder how you going to pay back.
2. No house of your own.
3. Work as an accountant, police or lawyer.
4. Low amount loan despite having a reasonably high income, for example borrowing $5000 when you make $7000 per month, why the hell do these people want to borrow? Can't they try to save?
5. From CA or NV. That is what everyone is saying, not sure if it is valid.
6. Too old, because that person can die suddenly and the loan can be default.
7. Note graded A, B, C on LC. Or Interest less than 17%.
8. Empty description or meaningless description. (If you are trying to persuade someone for money, don't you need to work hard to persuade the person who is trying to lend you?)
9. Loan money for business or vacation. I am ambiguous for wedding or engagement ring, not sure if these two are high or low risk?
* By the way, not too sure if anyone realized about verified income? What is the effect on ROI and default? If you have your income verified right from the beginning, does it make the loan less risky? Please share your experience.