Do you invest in cashback listings?

[Bilgefisher]

Do the cashback listings sway your investing in one way or another?

[chasingbread]

Nope. I believe it's designed to help sway those away from their self-established criteria. I think it works for Prosper, and especially for the newer investors.

I don't even look at them, and at times I find myself investing in one without even knowing it.

[Peter]

https://forum.lendacademy.com/index.php?topic=111.msg272#msg88888888Quote"> from: Bilgefisher on October 06, 2011, 11:41:04 AM

[DiligentiaLLC]

I have used it and enjoyed the nice bonus it provides, however I only recommend buying a position in the loan if the rest of the information meets your existing criteria/filters.  Don't reduce your standards in order to get the 3 - 4% bump because it is only a one time payout whereas you are "marrying" that borrower for 1 - 5 years.  Overall, if the loan does meet your criteria, the cash back bonus can be a nice hedge against future defaults reducing a little bit of portfolio risk.  I wish LC would do the same.

[TravelingPennies]

I stick to my investing criteria, but I look to see if those loans fit in first.  1 loan so far.

The 3% cashback has me thinking though.
Lets look at the numbers.

My investment criteria sees about a 3.5% default rate.
Assume 3% cashback.

If I invest in 3% cashback loan that has a default rate of 6.5%, shouldn't my return be exactly the same?  And actually it might be  a bit better since I get the 3% immediately if the loan closes.