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Author Topic: Do you invest in a loan because of touching or excellent description?

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I bought a few notes and invested more than $25 on these notes simply because I was touched by their description.

One of them was to rebuild a house blown away by Hurricane Sandy. At that time, I just wanted to help him out. I live in NYC, so I know how bad was the hurricane.

Another one was a medical bill for her sick daughter, was touched by the description.

Today I invested in another one who wants to get married, need to borrow money for a venue to marry, he or she has enough for the ring, but does not have enough to rent venue, stated that they can't go to churches because they do not recognize same sex marriage, felt for their predicament and just wanted to give a helping hand.

Sometimes it just makes me wonder if I am investing or doing you guys have similar experience?
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Community bankers don't solely make loans for money.  They try to help build the community and help the residents out, while pricing the risk correctly.  You are just getting a better perspective in the "people part" of Lending.  Just don't  let those things blind you
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No I don't give a shit.
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I strain to find a more colorful way of putting it, so I'll simply say I am closer to American's point of view.
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I very rarely read any of the loan details for the notes I purchase.  In the cases where I actually pull up the details the reasoning for the loan typically does not sway my decision one way or the other.  You can say I fall in the same camp as AiB and AmCap.  I am here to make a better ROI than I get leaving my money in my CU savings account. 

Having said that, if some people want to make money AND help other people out, I say more power to you.  As rawraw suggested though, a reasonable level of skepticism is warranted since loan purpose is not verifiable.

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I don't generally have much faith in people and so I tend to be less inclined to allow a description to change my mind... Although those military folk (that met my filtering requirements) will always get investments from me...
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"No I don't give a shit."

Pretty much agree!

I don't know how many 31-90 days late or defaults I have that have those touching, heartstring-tugging stories.

I read the descriptions, not looking for positives, but negatives.  "I need the money to catch up on my utility bills".  "....and I'll be using the balance of the money for a well deserved bahama vacation."  "Some used clothes for the kids and a brand new ground effects package for my truck".  "Start up capital for my VCR repair business."

Descriptions that sound like they are begging are in my opinion an act of desperation.
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I personally only read them to see they understand what they are doing.  Sometimes they'll tell you everything you needed to know to be 100% sure you shouldn't lend them money.  But when talking to girls at the bar about investments, I may say "Yea I lent money to a dude who lost his house in Sandy."  :)
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It's better than talking about my fico, right? :-P

Sent from my SAMSUNG-SGH-I747 using Tapatalk 2

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It's better than talking about my fico, right? :-P

Mmmmm, I don't know.  If I recall, FICO's were always at the top of chicks "Gotta Know" list!

But seriously RawRaw!  We need to find you a new hobby to talk about, something more interesting than P2P.  Walking up to a woman with you're hand up in the air yelling "Hey you A-Grade Babe, High FICO Me!" just isn't their idea of a good, first impression.

Here's an idea.  Buy an ant farm.  That's more interesting than P2P.    Try opening with something like "Mind if I bug you?" then whip out your smart phone and show her pictures of your ants.  Don't forget to call them by name as you toggle through the pictures.  It shows you really care.  Once you show her about 9 or 10 of your favorite ants, finish off with a line like "Now that you know a little about me, I need to know a little about you.  Like, what's your favorite breakfast?"

Works for me.
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Watermen:  See if you are "touched" by any of these loan descriptions for some of my notes that have been charged off.  Some of my chargeoffs had no descriptions.    Looking back on some of these, I can see some red flags now.  I am not sure if everything in the descriptions was posted at the time I reviewed and funded the loan.  I think you should beware if anything in the description makes the borrower sound too desperate or trying to sell you too hard on funding the loan.

The reason for the loan is to pay off 3 credit cards that reached its limit and has high intrest. Im very stable at work. I have been working for the same company for 4 years.   Stopped paying after 10 months, Miami FL

I am working to get out of debt and increase my cash flow with this loan. I have been with same company for the past 4 years. I have know the owners personally for the last 12 years. I have debt but I always pay my bills. Thank you for your assistance with this loan. Once again I want to thank all investors for their consideration. I want to re-enforce to all my goal of getting out of debt by lower my monthly payments and having a timeline to get out of debt rather than revolving debit.  Stopped paying after 10 months, Las Vegas, NV

I wish to use these funds to consolidate all of my credit card debt that is currently at high APRs. By spreading out the payments over 60 months and benefiting from a lower monthly payment, I can pay down my other unsecured debt quicker leaving me with just this loan after approximately 42 months. Stopped paying after 4 months, Southgate, MI

I would very much like to consolidate my debts into a single payment. The interest rate you have provided is similar to the rates on the credit cards I already have. Thank you for helping me and my family. I will also be paying off a Wells Fargo Loan with these funds. If I am able to get all 35,000 I will be able to pay off all of my unsecured debt. Thank you for helping me and my family  Stopped paying after 4 months, West Jordan, UT

This loan will be used to pay off several smaller balanced credit cards. I pay a little over minimum each month, but by doing this it will take over 10 years to pay off. I'm looking for one TERM loan that will have everything paid off in 5 years (or less if I can pay more than the monthly rate). Credit cards will be cancelled so they do not get used up again, and can be debt free in 5 years.  Stopped paying after 9 months, Aloha, OR

I will use the funds to consolidate existing debt to one easy payment. have been a member of the (smwia) sheet metal workers local union 105, for the past 5 years. My career has complete job securtity(Insured, 401, pension).  Stopped paying after 8   months, Lake Elsinore, CA

Borrower added on 08/12/11 > Purpose of loan: This loan will be used to consolidate a couple of smaller loans (car and CC) into one monthly payment.My financial situation: I am a good candidate for this loan because I am a hard worker. I have a good, stable job. I have never defaulted or missed a payment on any of my debts.

Monthly expenses:
Housing: $2,670
Insurance: $150
Car expenses: $300 (replaced with this loan)
Utilities: $150
Phone, cable, internet: $100
Food, entertainment: $350
Clothing, household expenses: $500
Credit cards and other loans: $1000 (mostly student loans from grad school)
Other expenses: $720 (Tithing)
Borrower added on 08/15/11 > This loan, due to being one lower monthly payment, will free up an additional $700 in my budget. Stopped paying after 10 payments, Lake Tapps, WA

To consolidate and track my progress in reducing money going out.  Stopped paying after 5 monts, Sylmar, CA

 Debt Consolidation  Please explain the reason why you carry a large revolving credit balance. A: (02/16/2012-06:39) - Emergency Flood - insurance did not cover damages. Stopped paying after 5 months, Cumberland, RI
I am trying to get myself back in financial shape. I've cut up the cards, worked out a budget that I'm able to stick to, and I'd like to make a single payment instead of several. Even better, I'd like to pay the interest back to the community instead of several faceless banks... Thank you for considering my request!Borrower added on 09/06/11 > I plan to pay off all my unsecured debts, which currently total just below $19000 and carry monthly payments of about $1200. I have a very secure job; I've been there for sixteen years with no reason to think that income won't be there in the future. The problem I've gotten myself into is that my expenses don't leave any room to make progress on the debts.
null  Stopped paying after 9 months, Aloha, OR     

Borrower added on 12/07/11 > I'm using this loan to pay off high interest cards. I'm paying close to 300 a month and they aren't moving! With this loan ill be paying a little less but the debt will be getting paid off! This club sounds like a life saver!  Borrower added on 12/09/11 > I really appreciate all help in securing this loan!  Borrower added on 12/09/11 > I greatly appreciate all help with securing this loan! Borrower added on 12/12/11 > I'm asking lenders to please invest in this loan, Im paying off this loan early so you will receive your investment return quicker. Borrower added on 12/13/11 > I'm asking investors to please invest in another share on this loan if you can. This loan will help me greatly get on track with everything financially, I'm nervous not enough progress is being made on this loan with only 6 days left and 7k to go!  Borrower added on 12/14/11 > NEED HELP INVEST HERE! Borrower added on 12/18/11 > Please help I only got 2 days left! Merry Christmas and thank you all !!! Stopped paying after 4 payments, Youngstown, OH

I plan to pay my credit cards debts in one monthly payment with lower interest rate. I have never been late on my bill payments. I have a stable job and have been working with the same employer for more than 5 years.  Stopped paying after 6 months, Alto Loma, CA

Would like to pay off higher interest rate credit cards. Q.  Please explain the reason why you carry a large revolving credit balance.A: (01/21/2012-13:26) - Was out of work for awhile. I have had my job for a few years now. I am making more money and would like to have a more structured plan to pay off my debt. Stopped paying after 2  payments, Vista, CA

Consolitate 2 major credit cards into 1 lower payment. Borrower added on 08/11/11 > I have a very stable job that i have been working at for over 5 years. I intend to have my loan payments deducted from my account to ensure proper repayment.  Stopped paying after 7 payments, Midlothian, VA

This is for debt consolidation and will make my debt obligations much more manageable.  Stopped paying after 8 payments, West Warwick, RI.

Borrower added on 08/10/11 > Looking to pay off high interest credit card through this loan. I consistently pay my bills on time and have stable employment in Health Care. Thanks so much to those of you that offer your assistance! Borrower added on 08/14/11 > PLEASE CHECK MY HISTORY... I HAVE NEVER MISSED A PAYMENT. The nursing field is always in demand so I definitely have job security in this unstable economy. If you invest in me, you will definitely be returned your investment PLUS interest! Thanks for your consideration! Borrower added on 08/15/11 > PLEASE CHECK MY HISTORY... I HAVE NEVER MISSED A PAYMENT. The nursing field is always in demand so I definitely have job security. If you invest in me it is a sure profit because it WILL be repaid. I take my responsibilities seriously and I appreciate the opportunity this will give me. Hopefully one day I can invest in someone else as you have done for me, thanks again!  Stopped paying after3 payments (and one of these was late and the last one was partial payment)    Parkville, MD

This loan will help me consolidate over 90% of my credit card debt. The rest is on low interest cards. The debt was not for luxuries, but for day to day expenses and for unexpected expenses. I plan to close two credit cards immediately if I can consolidate my debt. About one year ago, our current house was refinanced at 4.75% for 30 years. Also, I am happy that my retirement funds have grown to >$20,000 over the last 10 years. My emergency account is started, only a few hundred dollars, but I feel good it is started. I have finished my BS degree ( over 60% paid by work), received my extra salary, and have been employed by my current employer for a little over 4 years and been at my per diem job for 6 years. I have a total of 10 years in my current field. I look at this loan as a last step to complete my financial makeover. Thanks.    Stopped paying after 12 payments. Manahawkin, NJ

This loan will be used to help pay for rent and other bills Borrower added on 08/29/11 > Personal Loan to help pay rent and other bills. null  Stopped paying after 2 payments.  Chatsworth, CA

PAY OFF SOME CREDIT CARDS :) Borrower added on 07/21/11 > mostly to pay off care credit- cancer treatment emergencies: their interest rate is crazy, but needed it at the time. Consolidating to have one payment a month is much easier than having 4/5 payments.  Stopped paying after 2  payments, Leesburg, FL

585355 added on 12/04/09 > I also make $5,050 in supplemental income working in the summer. I make minimal extra money throughout the school year as a substitute in the afterschool program. A low-ball figure of my yearly earnings is $52,732 (or $4394/mo.) My fiance and I both have mortgages. His child support and new car payment (to replace a car that no longer ran), have recently increased our monthly payments to a point where we have had to rely on credit cards for necessities so that we can put all of our income towards staying current on bill payments. Therefore, I have an uncomfortable amount of debt right now which is making it difficult for me to qualify for the loan I need to rid myself of my mortgage payment (the only reasonable offer I have received on my house, which is an offer I would like to take to vastly lower our monthly payments, would require me to pay $17,000 at closing to cover the difference to my mortgage company and closing costs.) I have wonderful credit other than my debt-to-income ratio because I am timely with my payments, and I just need a company to take into consideration that I will be relieving myself of $158,000 worth of debt if I qualify for this personal loan to allow me to sell my house. I realize that a personal loan of this size would typically require collateral, such as the house which I am hoping to sell, but I hope that there can be some consideration in this matter also. I am basically caught in a catch 22 because if I don't qualify for the personal loan and have to keep my house longer, my debt will continue to accrue thus making it even less likely that I will ever qualify for the loan due to my debt-to-income ratio; meanwhile, the housing market is continuing to dwindle, making it more likely that I will not get any better offers on my house. And finally, I would also like to add that I have been employed as a teacher with the State of Delaware for 7+ years now and I will be completing my Masters degree in December so my income will continue to increase. 585355 added on 12/05/09 > I was able to negotiate with the buyers so they are trying to fund $4000 more of the mortgage. Therefore, hopefully if they are able to get approval, I will only need $14,000 to cover the closing costs, transfer tax, and difference.  Stopped paying after 7 payments,  Milton, DE  I am still smacking myself on the head for funding this loan

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