The Money Mustache Community
Around the Internet => Antimustachian Wall of Shame and Comedy => Topic started by: blackfedora on August 30, 2013, 04:02:18 PM
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I received a pre-approval for up to $35,000 from Lending club.... I currently have a lending account with them. Good job guys...
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Haha, awesome!
You should see if you can be your own funder, just for shits and giggles.
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Haha, awesome!
You should see if you can be your own funder, just for shits and giggles.
Brilliant… pay interest to yourself and save more!
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I received a pre-approval for up to $35,000 from Lending club.... I currently have a lending account with them. Good job guys...
So you could borrow money at 6% and lend it out at 15%?
Yeah, that should work... especially if they'll auto-deduct the P&I payments from your lending account right after it's credited with the monthly deposit.
[/sarcasm]
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I received a pre-approval for up to $35,000 from Lending club.... I currently have a lending account with them. Good job guys...
So you could borrow money at 6% and lend it out at 15%?
Yeah, that should work... especially if they'll auto-deduct the P&I payments from your lending account right after it's credited with the monthly deposit.
[/sarcasm]
Many people tried this "arbitrage" in the early days of Prosper (this was before LC existed). It did not work out well (for a number of reasons).
The announcement the OP got could have been worse, it could have been reversed. I.e. "You've borrowed 20k from us. Become a lender!"
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I received a pre-approval for up to $35,000 from Lending club.... I currently have a lending account with them. Good job guys...
So you could borrow money at 6% and lend it out at 15%?
Yeah, that should work... especially if they'll auto-deduct the P&I payments from your lending account right after it's credited with the monthly deposit.
[/sarcasm]
Many people tried this "arbitrage" in the early days of Prosper (this was before LC existed). It did not work out well (for a number of reasons).
The announcement the OP got could have been worse, it could have been reversed. I.e. "You've borrowed 20k from us. Become a lender!"
At one point early on in Lending Club I got an offer to take out a Lending Club loan in order to invest in more higher risk loans, in exchange for which I would get a 4% discount on the interest rate. I have to say I seriously considered it, but I'm glad I didn't participate - returns in that era were significantly below current returns (this is before they reworked the risk determination). I definitely would have lost money on that deal.