Hi,
I put a blob of money in LC last June. After 9 months, over 7% of my notes (combination of 36 & 60 month) have paid off early. Seems like a high percentage. What kinds of rates are others running?
I started investing in LC in Sept. 2010. To date, 11% of my notes paid off early. I don't need the cash available, so I simply re-invest in new notes. Initially, I picked A and B notes, but lately, I am investing in lower grade notes to get higher returns.
Looks like I'm running a similar trend. Not really a problem other than the re-investment hassle.
I started in August 2009 and of that initial investment I have had 50% pay off early. I really don't mind this at all because you are getting this high rate of interest for what is in effect a short term loan.
Prosper creates an incentive for repeat borrowers by reducing interest rates on the subsequent loans. I would imagine this creates a peripheral incentive to payoff previous loans early. Does anybody know if LC offers the same incentive for repeat borrowers?
My understanding is that Lending Club gives less weight to previous borrowers. It is just one factor in the entire credit picture - whereas with Prosper you are almost guaranteed a better rate as long as you have paid on time and your credit score is still above 600.