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Post by lars75 on Oct 26, 2014 11:33:35 GMT
Hey guys,
I just joined this forum and read a lot about your posts - very interesting discussions!!
I was wondering what you think of platforms like [ link removed by mod ] from the US? The main difference to other platforms is that the borrower has the option to manually improve his/her credit score through several actions. These actions could be taking an internal course about finance, borrowing, investing etc. Furthermore, these platforms start providing very small loans to individuals and in the later time offer higher credit amounts. Since the platform learned already about the borrower through earlier loans (e.g. repaid on time etc.) it is much easier to judge the creditability of the borrower.
What do you think of such a platform from the perspective as an investor? Would you be willing to invest on such a platform? What are the reasons - what are counter arguments?
Hoping for a nice discussions. Thanks!
Cheers,
lars
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Post by mrclondon on Oct 26, 2014 11:46:22 GMT
The main difference to other platforms is that the borrower has the option to manually improve his/her credit score through several actions. These actions could be taking an internal course about finance, borrowing, investing etc. Furthermore, these platforms start providing very small loans to individuals and in the later time offer higher credit amounts. Since the platform learned already about the borrower through earlier loans (e.g. repaid on time etc.) it is much easier to judge the creditability of the borrower. What do you think of such a platform from the perspective as an investor? Would you be willing to invest on such a platform? What are the reasons - what are counter arguments? Has already been tried in the UK with disastrous results by Quakle (French owners) - lenders lost virtually every penny lent. There is no substitute for thorough credit scoring / profiling. [Mod hat on] I have removed the link you posted as it is not relevent for UK citizens, and as this is your first post could possibly be adverstising / promotion which is against forum rules.
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Post by lars75 on Oct 26, 2014 12:10:22 GMT
Thanks for the fast reply. First of all, sorry for posting this link - I am not affiliated with any crowdinvesting / lending platform. I was just curious about this approach for investors.
Hm I have never heard of Quakle, but just read an article about them on the Guardian. But it sounds like they did many mistakes and don't see the connection to the idea I suggested. An "educational" P2P Crowdlending platform would engage with the borrower, offer him trainings and tests all around finance. I was expecting, that people who are engaging in these things are more likely to be able to repay their loan because they show interest in the topic. Do you disagree?
Furthermore, I assume there could be many different reasons why the platform failed. Having a great credit scoring is crucial for EVERY platform, however, if your algorithm is really bad, you will fail with a really good approach as well...
I only thought the educational part sounds like an interesting criteria for scoring a borrower and would love to know what you and other people think IN GENERAL about it - not related to other platforms.
Thanks again & cheers
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Post by oldnick on Oct 26, 2014 18:31:44 GMT
Although there is no reason why borrowers should not join this forum, it does seem that all the vocal members are actually lenders.
I'm also not sure that training borrowers to improve their credit scores is going to make them any better as prospects for a loan - sounds a bit like cramming for exams?
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markr
Member of DD Central
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Post by markr on Oct 26, 2014 21:22:31 GMT
Sounds a bit like what QuidCycle are offering - reduced payments for meeting certain criteria including not taking on more debt and completing online financial planning courses.
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Post by curious on Oct 26, 2014 23:14:20 GMT
Does anybody know of P2P or p2b sites catering for UK residents wanting to lend in US$? The only one I contacted provided reams of documentation, the overall consequence of which meant, as a US non- resident, I couldn't invest. I have a considerable amount of US$ which I don't want to convert to UK£, and I'm looking for something better than the miserable 0.4% my bank deigns to give me while they use my money at substantialy higher rates. Thanks
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pikestaff
Member of DD Central
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Post by pikestaff on Oct 27, 2014 7:55:55 GMT
US regulation is so intrusive and overbearing that I would not want to lend there even if I found a site that would let me.
As well as the inevitable form-filling that would result (the paperwork I had to sign just to be allowed to sell some US shares that I got as a result of a takeover was ridiculous), I'd be worried that my bank might decide that I had some kind of financial association with the US and then ask me to close my account. There's anecdotal evidence that a lot of banks don't want retail customers with US connections because of concerns about US regulation and the enormous fines they are liable to be hit with when somebody decides they have got it wrong.
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Post by mrclondon on Oct 27, 2014 14:02:11 GMT
curious , if you are an American citizen resident in the UK try to find an internet forum for American expats in the UK. There is likely to be a lot of discussion of investment strategy amongst expats, as the US tax rules and reporting requirements are now effectively forcing some American expats to give up their American citizenship.
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Post by curious on Oct 28, 2014 0:37:49 GMT
Thanks for the advice. Unfortunately, I'm a UK citizen and currently resident in the UK but planning to move to the US in the next year or so, but not wanting to exchange the US$ I have back into UK£. Seems I'm just going to have to put up with the paltry returns offered for cash accounts by the robbers known these days as banks.
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