I’ve realized that applying the correct filters on Lending Club is key to choosing the note/loan you will be comfortable investing your money in. Lending Club provides many filters which help narrow down the list of loans.
There are obvious filters such as the interest rate, term (36 or 60 months), purpose of the loan, and the applicant’s credit score range. But there are also filters which go deeper than this such as the applicant’s debt-to-income ratio, total number of credit lines, and if they have had any delinquencies. I’m still getting the hang of using the different filters and determining which are critical and which I can slide a bit. As always with investing, there is a risk/reward balance. If you turn on all of the filters and set them to very stringent standards, the number of available loans will be very small and/or at a very low interest rate (since very high quality applicants will be considered low risk and carry a lower interest rate).
What do you think are some important criteria/filters to consider when P2P investor lending? Please let me know in the comments!
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