I only put in $500.
The pros.
- so far no defaults though a couple of close calls
- You can fund it via your credit card. Great for converting credit card to cash. And great for points.
The Cons.
- you are not allowed to control your notes. They do the investing for you.
- No liquidity. You can't sell your investments.
In the future I probably would use Lending Club.
I liked their original mktg pitch - "smart kid drops out of college to refinance crushing student loan debt of kids not smart enough to drop out" - but they've since 'gone establishment' and some guy who used to run Gmail, for a while, at goog, is now running things, last I heard.
Their securitizations appear to be holding up, so, they're doing something right on the underwriting side - but they're competing w/SoFi.
That's stiff competition.
I have been using it and my returns are pretty bad. Barely getting above 2% IRR.
Damn, 17% default rate!! That is too high. What is the interest rate profile for your loans? Most probably 20%+. It is shame the guys who claim to bring Google expertise can't figure out how to do better.
A portfolio of 6 loans is no comparison with portfolio of 101 loans. The expectation of better returns is a reasonable expectation when you don't have control over how your investment is deployed.