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Post by dbe on May 31, 2019 5:52:22 GMT
Mintos publishes credit scores (A..D) for each individual originator, Loan originators, which is useful. How come I cannot see a similar scoring for each individual borrower in each loan? When there is a buyback guarantee I suppose this makes it slightly less relevant but when your cash flow (monthly interest payments) is materially affected when a borrower is late, surely a borrower credit score is also very relevant? Why is it not provided? Maybe I'm missing something. |
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Post by geldregiertdiewelt on May 31, 2019 12:38:20 GMT
I think what you might be missing is that the credit scoring of idividual borrowers is the business and also the business secret of the loan originators. It's their professional knowhow and might not be comparable across several originators.
What Mintos does is looking the the published and non-published reportings of the loan originators. These reportings have to follow certain accounting standards which can still vary depending on country and business size, but I guess Mintos has the resources to review them and present them to us in a standardized format. That's it.
By the way: Don't care too much about an individual loan and the borrower person behind it. Set your autoinvest such that it buys you a diversified portfolio of at least 200, better >1,000 loans of app. same size across many loan originators and countries. That's the way to minimize your p2p investment risk.
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Post by hugoncosta on Jun 2, 2019 7:24:35 GMT
In Mintos, you invest into the company, not the person at the end (not as much as other platforms), thus why it doesn't really matter. If you want to prevent loans going late, choose companies whose grace period, late, etc is low (not a guarantee), diversify across the entire company (buy 10x10€ loans vs 1x100€ loans) (not a guarantee), in payday loans choose loans from individuals that are returning customers (APR > 0%) (not a guarantee) and finally, sell on the last day or two so that you can guarantee the reinvestment and prevent grace period (not a guarantee).
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