james
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Post by james on Apr 12, 2014 11:47:51 GMT
This application was just completed to consolidate 4 Bondora and one other loans, with 5 other Bondora loans to remain in payment. The applicant has made a total of 23 applications starting at credit grade 600 (payment problems within six months) in late 2010 and moving on to grade 1000 for the two most recent applications. It's an interesting demonstration of the improvement in credit grade over time and the most recent loan was done with quick lending at 12% (to lenders, APR will be higher). Interesting that the previous applications information in this application only shows 5 past applications, not 22. Usually it's thought that lenders have more experience than borrowers but this one has a lot of experience with Bondora! One thing that seems very likely: the lenders on the outstanding 5 Bondora loans aren't going to have those loans for much longer. I assume that this borrower is going to consolidate them as well soon. |
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JamesFrance
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Port Grimaud 1974
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Post by JamesFrance on Apr 12, 2014 14:19:12 GMT
I imagine they are only showing the most recent previous applications. I am amazed that in the early days someone was prepared to give a loan at 3% for over 1000€ to someone showing A600 claiming to have an income of 10000€ per month.
I was looking at this one yesterday as the profiles seem to be lowering their offered rate in large numbers this week, so I am only a part of quite big loans at the moment. Here is a loan of 6500€ being filled very fast at 12%, with a manual bid of 1000€. Lots of other low rates filling also, one small one ended up at 6%, so I am not inclined to lower my own profile rate to get more loans. Hopefully a lot of this is because so many repayments are made about now so more people are reinvesting at the moment.
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duck
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Post by duck on Apr 12, 2014 15:17:57 GMT
I don't blame the applicant for 'taking advantage' of the system, in fact I admire somebody who is prepared to make the effort. Over the past year I've noticed a bit of a new industry springing up with 'advisors' telling you how to improve your credit score I imagine that this is not confined to the UK.
I have taken the same decision. 13 new loans in the past week is one of my lowest weeks but I've not picked up anything below 22%.
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james
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Post by james on Apr 12, 2014 16:16:15 GMT
I think not just the repayments around the 10th of the month but also Bondora stopping their advertising from the middle of March in preparation for the rebranding from isePankur to Bondora by isePankur. I assume that there might be lots of advertising starting on Monday 13 April as the first business day after there's been time for most of the payments bulge to arrive and also after some time to get the new brand in place and tested in use for a while. Though Bondora did mention somewhere that they were considering seeking more investors in the company to fund advertising a little while ago so that may be a limitation at the moment.
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james
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Post by james on Apr 14, 2014 18:02:12 GMT
Lots of lending completed today. One "failed" timed lending bid - a success because it would have been at a low rate. Twelve completed loans. Seven of them destined for resale because of low interest rates. I really wish that more borrowers who ask for low rates would use timed lending so I could be outbid rather than quick lending so I get the loan and sell at a loss...
Perhaps the most interesting one is the loan at 1000 credit grade to an existing borrower of mine who had made several late payments. Bondora seems committed to ignoring the credit performance of existing Bondora loans when assigning credit grades. On the positive side, I sold the late payment loan for a profit a little while ago so that will at least subsidise the cost of selling the new low rate loan to an unreliable borrower.
But this loan is also interesting for another reason: I lent less then the maximum that the profile would have allowed to a new borrower. I had no current loans so I expected that I might lend the full profile amount. But what actually happened is that I lent the amount in the profile less the capital remaining at the time I sold the previous loan, rounded down to the nearest 5 Euros. It appears that Bondora might now be deducting the value of sold loans from the potential lending to a borrower. I think that they didn't do this before. If so, I like it, in general, though more control would be nice.
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duck
Member of DD Central
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Post by duck on Apr 15, 2014 5:05:48 GMT
james your day seems to have mirrored mine!
Would that be E....N by any chance? Sold that one last week at a small + ......... and then picked it up again yesterday 11% lower this time!
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JamesFrance
Member of DD Central
Port Grimaud 1974
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Post by JamesFrance on Apr 15, 2014 6:58:34 GMT
I had the old one, a greater amount than my current bids so I was not in the new one. The old one was of course repaid last evening.
I am sorry to see so many quick loans being passed by Bondora at low rates. With my unchanged bid rate for A1000 Est I am only getting larger loans, however with a higher average rate this month so far. I would prefer small loans but the profile competition is fierce at the moment, with several bidding higher than 100€ per loan and filling the small loans with low rate offers.
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james
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Post by james on Apr 15, 2014 12:26:23 GMT
Yes, it was E....N. I checked the date I sold the loan. I still had it at the time of the new application so it wasn't any change, just the usual profile limit. I am puzzled about why my profile offered less than the profile limit on a loan from today, though. I had a sold loan before the new application was made but even if I deduct that the amount bid is still less than the available profile amount.
Yes, the competition is very high at the moment. I hope that there's enough borrower demand and advertising to do something about that.
So far I'm doing better today than yesterday. 9 loans and only two for resale, only one of those because of a low rate. Though one more is below my desired rate, just not for resale as rapidly as the others.
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