Our team of experts in the fields of analytics, underwriting, finance and investing have studied over 1,000,000 peer to peer loans. This extensive analysis has enabled us to identify characteristics of a borrower's profile and credit history which can indicate loans that are most likely to default. Using this information we rate peer to peer loans, allowing you to build a stronger portfolio and feel more secure in your loan investments.
How does PeerLoanAdvisor.com determine ratings for loans?
In order to assist their investors, peer to peer loan sites provide detailed information on all of the loans they have issued. This includes all of the information from the original application (which is dozens of data elements), as well as status and repayment data. This an enormous amount of data going back over 10 years and includes over a million actual loans that were approved and funded by individual investors.
We have developed a proprietary method for analyzing this data and determined which factors from the borrower's history indicate the likelihood of the loan being repaid in full. Our research has been conducted in accordance with strict standards and established statistical analysis techniques in order to ensure accuracy and reliability. Click here for more about our loan rating methods.
How do your ratings work?
We give all loans available on LendingClub.com a score on a scale of 0 to 100 based on the information submitted by the borrower. The higher the score, the less likely the loan is to default. Which loans you select for your portfolio is entirely up to you. We provide these ratings as a tool for you to use in your assessment of the loans offered.
Which peer to peer loan investing websites do you provide ratings for?
Currently, we provide ratings for all loans available on LendingClub.com. Lending Club is the largest is largest P2P lender and is available to investors in almost every state. Lending Club has been connecting millions of borrowers with individual lenders since 2007.
Should I only invest in peer to peer loans based on your ratings?
How you manage your portfolio depends on several factors such as risk tolerance, rate of return goals, liquidity needs, tax implications and your review of the specific loans offered. Our ratings should be used as a tool as you carry out your investment strategy. We strongly suggest holding at least 100 loans, even if that means investing smaller amounts in more loans and including lower rated loans in your portfolio. As with any investment diversification is vital to minimizing risk. Learn more about Lending Club Investing Strategies
Is automated investing a good idea?
We believe that automated investing (having the P2P site choose loans for you) is not the best strategy. It is mistaken to believe that you will achieve returns consistent with the averages for all loans on the site. This is because professionals will likely choose the better loans and fund them quickly, leaving the pool of available loans more weighted towards the loans most likely to default. Selecting quality loans is not easy for most investors. That is why we have developed our loan rating system.
Do you guarantee results?
As with any investment there is always risk. Even a diversified loan portfolio can experience a significant number of defaults. Our goal is to assist you in selecting loans but ultimately the decision is yours and your portfolio may not perform as well as expected. As they say with any investment, past performance is not necessarily indicative of future results.
How much can I make?
LendingClub average annual returns for each grade of loan range from approximately 4.5% to 6% over the long term. Our loan rating algorithm has been thoroughly tested against past loans. The results show that using our ratings can help you increase your portfolio returns by up to 7 percentage points over the LendingClub average rates, depending on the mix of grades contained in your portfolio.
What do members get?
Members get access to our loan ratings. We rate every loan that Lending Club makes available to investors. Loans are rated on a scale of 0 to 100. Loans with a rating above 50 are likely to have a significantly lower than average rate of default. Loan ratings are updated every hour or every day, including immediately after new loans are released by Lending Club.
Loan Rating Example
Each loan available to investors on LendingClub.com is listed in our ratings chart, with Loan Id, Score, Grade, and List Date. Members can use the search box to find a specific loan. Loans can be sorted by Loan Id, Score, Grade or List Date.
The Peer Loan Advisor Team
The PeerLoanAdvisor.com team is comprised of experts in the areas of analytics, investment management, finance, technology and underwriting. These professionals have advised us and reviewed our study results in order to ensure the information provided to you is accurate and useful to you as a peer to peer loan investor.
Cody holds undergraduate degrees in Finance and Economics from Saint Joseph's University, as well as a Master's in Business Administration from Villanova University. He has over 20 years experience in finance, consulting, data analysis and analytics with firms including Towers Perrin, Electronic Data Systems, Cigna and Freedom Mortgage.
Arthi holds an MS in Applied Economics from Johns Hopkins University and undergraduate degrees in Economics and Mathematical Sciences from the University of Texas. At the Federal Reserve Board of the United States, Arthi aided in research presented to top policy makers that involved cleaning and analyzing macroeconomic data, time series analysis, forecasting, and other econometrics methods.
Nageswara Rao Chinta
Nageswara is a technology consultant with oDesk/Upwork and has over 10 years experience working with multi-national corporations. He holds a Bachelor's degree in Computer Science and Systems Engineering and a Master's degree in Computer Science and Technology.
Jared Lafitte is a professional finance and investment writer. His work has been featured in many publications including Forbes, Entrepreneur, and The Predictive Index. Jared has a Bachelor's degree from Wheaton College and a Master's degree from Southern Baptist Theological Seminary.
Daryn holds a BBA from Calfornia State University and an MBA from Western Governors University. He is a banking and underwriting professional with over 10 years experience at financial services firms including Morgan Stanley, Zions Bancorp and Discover Financial Services.
Maria is a financial advisor with Valic Financial Advisors. For over 15 years she has been providing financial planning and investment management services. Maria is a graduate of St. Joseph's University.
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