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Post by Deleted on Aug 26, 2014 23:08:06 GMT
I couldn't find an answer to this on the website and gave up searching.
Who does RateSetter lend money to?
Is it consumers? If so, for what purpose? Cars, holidays, kitchens, debt consolidation? Is it similar to Zopa?
If so, why do we want to increase the supply of consumer credit? Aren't rates low enough?!
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pikestaff
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Post by pikestaff on Aug 27, 2014 7:44:48 GMT
It's consumer loans and it could be for any of those things and more - see the attachment, which is copied from members.ratesetter.com/your_borrowing/applications/smart_quote.aspxIn addition RS provide finance for giffgaff customers (mobile phones) and they may well have other broker business too. As to supply, I take your point but for the time being RS is just a drop in the ocean and it is a more efficient operator than the banks which must be a good thing surely? Rates are obviously high enough for us, or we wouldn't be lending. Attachments:
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Post by Deleted on Aug 27, 2014 11:08:00 GMT
Thanks for the information.
No I don't agree at all. The problem is too much consumer debt, not a lack of it. Embracing the marginal borrower is very bad news, but even if not one customer was ever shunned by the mainstream lenders, even driving down the cost of borrowing even further through added supply is bad news.
I won't be going there, but if you think making people poorer in the future is going to help, that's your business and I hope you turn out to be right, because no matter what you or I think, that's what's currently happening so I'd rather be wrong and less screwed than right and more screwed.
Thanks for your help.
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Post by goldservice on Aug 27, 2014 13:01:05 GMT
Thanks for the information. No I don't agree at all. The problem is too much consumer debt, not a lack of it. Embracing the marginal borrower is very bad news, but even if not one customer was ever shunned by the mainstream lenders, even driving down the cost of borrowing even further through added supply is bad news. I won't be going there, but if you think making people poorer in the future is going to help, that's your business and I hope you turn out to be right, because no matter what you or I think, that's what's currently happening so I'd rather be wrong and less screwed than right and more screwed. Thanks for your help. Do you have any suggestions, please, on who we should lend to instead? Or should we just save with a bank?
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c88dnf
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Post by c88dnf on Aug 27, 2014 13:50:28 GMT
(snip) driving down the cost of borrowing even further through added supply is bad news. A fair point, though the worst offender in that respect is HM Govt via provision of cheap money to the banks who so right royally mucked up 5 or so years ago. The average P2P lender is, I suspect, rather more conservative on loan rates. How many P2Pers would, for example, make a 5 year loan at 3.63% as Zopa cheerfully has done on my mother's behalf?
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Post by jackpease on Aug 27, 2014 14:05:06 GMT
>>>>make a 5 year loan at 3.63% as Zopa cheerfully has done on my mother's behalf?
Wow. Maybe Assetz should take out a Zopa loan to fill the Yorkshire Mobile Phone loan!
J
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webwiz
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Post by webwiz on Aug 29, 2014 17:08:27 GMT
Lending/borrowing is a zero sum game. There are some people who wish to defer spending (called lenders) who want to spend less than their current income, and some who want to bring forward spending (called borrowers) who want to spend more than their current income. Between these two groups of people are various intermediaries like banks etc but they don't really have any money of their own to lend. Market forces adjust the interest rate so that demand equals supply. This even applies to the Big Daddy Borrower AKA the government.
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Post by bengilbert on Aug 29, 2014 17:42:48 GMT
Lending/borrowing is a zero sum game. There are some people who wish to defer spending (called lenders) who want to spend less than their current income, and some who want to bring forward spending (called borrowers) who want to spend more than their current income. I disagree. Some borrowing is for purposes of investment. If someone can invest the money in a productive way, there can be more for everyone, and it's no longer zero sum. I'm doing some work at the moment for a US company lending money to people so they can do programming and data science bootcamps. 90% of them get high-paying jobs after finishing the course. The returns to the student for doing the course hugely outweigh the tuition costs, but some can't afford to pay the tuition up front. By lending them money, potentially everyone can win - both borrower and lender.
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Post by goldservice on Aug 30, 2014 8:26:44 GMT
Lending/borrowing is a zero sum game. There are some people who wish to defer spending (called lenders) who want to spend less than their current income, and some who want to bring forward spending (called borrowers) who want to spend more than their current income. I disagree. Some borrowing is for purposes of investment. If someone can invest the money in a productive way, there can be more for everyone, and it's no longer zero sum. I'm doing some work at the moment for a US company lending money to people so they can do programming and data science bootcamps. 90% of them get high-paying jobs after finishing the course. The returns to the student for doing the course hugely outweigh the tuition costs, but some can't afford to pay the tuition up front. By lending them money, potentially everyone can win - both borrower and lender. You may be creating wealth but there is only one Earth to spend.
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webwiz
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Post by webwiz on Aug 30, 2014 14:14:40 GMT
Lending/borrowing is a zero sum game. There are some people who wish to defer spending (called lenders) who want to spend less than their current income, and some who want to bring forward spending (called borrowers) who want to spend more than their current income. I disagree. Some borrowing is for purposes of investment. If someone can invest the money in a productive way, there can be more for everyone, and it's no longer zero sum. I'm doing some work at the moment for a US company lending money to people so they can do programming and data science bootcamps. 90% of them get high-paying jobs after finishing the course. The returns to the student for doing the course hugely outweigh the tuition costs, but some can't afford to pay the tuition up front. By lending them money, potentially everyone can win - both borrower and lender. Yes, wealth can be created, but it does not necessarily require borrowing to do so and is not relevant to my point which was addressed to those who think that lending is bad because it encourages irresponsible borrowing. It is a zero sum game at any moment in time, meaning that the amount being borrowed is equal to the amount being lent.
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webwiz
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Post by webwiz on Aug 30, 2014 14:19:56 GMT
Returning to the original question: Who are our borrowers?
This has been answered in general terms ie the type of borrower, but I would like to know who specifically are my particular borrowers. The FAQ says:
The only details you will have about the Borrower is a reference number and the details of how much money they want to borrow, the APR they want to pay and the length of their loan.
But I cannot see how to get these details. can anyone?
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c88dnf
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Post by c88dnf on Aug 30, 2014 17:23:03 GMT
The only details you will have about the Borrower is a reference number and the details of how much money they want to borrow, the APR they want to pay and the length of their loan.But I cannot see how to get these details. can anyone? Sign in to Ratesetter. Then either: Click on the Your Lending tab if not already in that section In the blue box on the left, click on "Portfolio" (not the entry marked "Your Portfolio" lower centre of the screen In the "Repayments by month" section, filter by whatever you need (month/ loan period), but leave the radio button on "contract", not "date" A list of your contracts due to pay interest that month will now appear with details of length of loan, payments due, a borrower reference number and the interest rate. Note that this option doesn't show loans with no payments due that month so.... Or: Under "Portfolio" in the blue box on the left, click on the type of loan period you wish to check Expand the "On Loan" section on the next screen Select "your money on loan" Bingo! Hope that all helps
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webwiz
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Post by webwiz on Aug 30, 2014 21:43:07 GMT
Thanks c88dnf. I could make method 2 work. There is no "Portfolio" in the blue box so could not use method 1 - i suppose because there were no payments yet.
There was not as much info as the FAQ said, no desired APR or term (unless this is in the contract doc which I did not bother to download.) The loan amounts are rather odd, with some pence not round pounds. Does this imply that my investment is funding only part of the loan?
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c88dnf
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Post by c88dnf on Aug 30, 2014 23:11:55 GMT
Thanks c88dnf. I could make method 2 work. There is no "Portfolio" in the blue box so could not use method 1 - i suppose because there were no payments yet. There was not as much info as the FAQ said, no desired APR or term (unless this is in the contract doc which I did not bother to download.) The loan amounts are rather odd, with some pence not round pounds. Does this imply that my investment is funding only part of the loan? The blue box entry is also lablelled "Your portfolio" (my error in missing a word out earlier). If it's not there you may need to speak to one of the representatives at Ratesetter, or possibly westonkevRS who pops up here from time to time might be able to help. Same applies to the point on "part pounds" loans. Regarding the "desired APR" point, the APR the lender is paying to Ratesetter is indeed shown in each contract document. I couldn't find the term "desired APR" in a quick trawl of the FAQs, so you need to help me (and other readers) with how/ where that term is used.
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pikestaff
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Post by pikestaff on Aug 30, 2014 23:17:06 GMT
webwiz Most probably your investment will indeed only be funding part of any given loan. To fund a whole loan, the point at which the borrower was in the borrower queue would have to match perfectly (for the whole loan) with where your money was in the lender queue. To see the composition of your portfolio the procedure is as c88dnf has said, but let me put it in my own words in case this helps. Click on the relevant duration (eg "5 Year Income") under "Your Portfolio" in the blue left-hand menu, then click on "On Loan" followed by "Your money on loan". You will then see a list of all your contracts for that duration, with the rates you are receiving. (Not the rates paid, which will be different because of RS's margin.)
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