Below is the Video Transcript:
Alright men. So now this is how it
Looks like on the Investor side. As you can see here right, the loan
requests exist to the Investors are in letters ok. Generally the
most safe loan is going to be an a right and the most or the riskiest loan is
going to be an E and here you can see what the rate of interest typical averages
are within each private rate or a class right if we want to call them
Class A Class B Class E etc fine so I simply wished to show you the way it looks
like on the financier side right so that method you can get a much better understanding
or an idea as far as what your application may look
like once its presented to all the financiers right another thing I want you
to bear in mind is the real applicants credit report is not a lot an aspect as
You can see here in this case right this is considered an a class loan
which is supposed to be more secure however as you can see here as far as their the FICO
score of the applicant its in fact lower than the much riskier kind of loan
right its in fact higher and the loan request amount this individual is asking for
24,000 while this person is asking for a lot more 40,000 right and its still
thought about a less riskier candidate so even if you have bad credit doesnt.
always mean that theyre gon na categorize you as a high threat candidate.
fine you might still come over here and apply and still be thought about a somewhat.
safe candidate right so even if you have bad credit doesnt always make.
you a risky candidate okay which is excellent so lets enter into a little bit more.
When they click inside your application right so, information of what it looks like.
what theyre going to see to start with what the month-to-month payment of the loan is.
gon na be of this particular loan fine theyre gon na see your job title theyre.
If you live in like, gon na see your location and remember what I recommended I.
lets state significant cities where the cost of living is a little bit higher like New.
York and California theyre gon na want to see that your specific monthly.
earnings is a little bit greater right so again like remember I suggested you.
understand a minimum of what I look for when Im gon na provide cash right when Im gon na.
really provide the cash as you can see here this loan request is practically funded.
So its considered as a dangerous loan but look its currently ninety percent of.
the loan request it is currently moneyed right and this is the amount of days.
that they provide you to get it funded right its not gon na always take.
twenty six days for you to get moneyed however thats how much time they give the.
investors to totally fund the loan alright make good sense.
Since appearance how much, all right so believe it or not these 2 get funded quick.
interest this lender or this financier is gon na earn on their cash right and they.
can invest as little as $25 right just to be a part of this loan.
all right so again its not like just one financier has to invest the complete amount.
that youre asking for right Lending Tree pulls all the investors together to.
go on and money your loan thats why these loans tend to get moneyed very.
quickly right so it can be as little as three to 7 days and you can get all.
your money funded so other things to look at in your.
application right whether the candidate is a property owner or they rent how long.
theyve been used for so as you can see the important things that are identifying this.
to be dangerous right even though this individual had a greater credit rating than.
what the a type loan was as you can see here its the amount of delinquencies.
like for one theyve got a public record on file so whatever that record may.
be the investor does not really see what the specific public record is so.
whether it be you understand lets say an eviction notification or you know maybe youve.
got a criminal misdemeanor on your record.
When lending does their, the financier doesnt really see what it is however.
background examine it just comes up as like one record it was found on file or.
possibly 2 or three or whatever it is ideal so the reason this is a little bit.
Due to the fact that its coming up with delinquencies right so here states like, riskier is.
the number of delinquencies did they find as far as like youre not paying alone or.
you was late on the credit card payment these are considered small delinquencies.
If you went, okay a significant delinquency is like.
insolvent or you understand you stop working to pay your home mortgage and they foreclosed on you.
those are significant they call a major derogatory hits right on your record so.
as you can see here this individual has got to it theyve got a minor delinquency.
within thirty four months like what the last two years right would be twenty.
4 months right theyve got absolutely nothing however the last link would see has remained in.
the last thirty 4 months all right does that make sense so what I look for is.
If youve got one however if you got, mainly here within 2 years I dont care.
like two or 3 then thats gon na raise a red flag for me as far as.
desiring to buy your loan demand but that does not always indicate that.
the other financiers will not right as you can see here this loan demand is.
already practically moneyed alright so once again the beauty about this is that investors want.
more return for their money so theyre willing to take.
that threat and once again its not a huge risk due to the fact that they can lend as little as $25.
simply to put their money in with all the other financiers to fully fund this loan.
and here the long-term is for 36 months when you see this checkmark its that.
they in fact validate the income of this application which you would believe that.
this would make it a less riskier loan but this one is thought about a higher threat.
due to the fact that one theyve got a lot of revolving financial obligation which is another thing.
Because if you didnt have high revolving debt, that I do not actually mind right.
Most likely you would not be here requesting a loan right ideal and and.
the purpose of the loan is loan refinancing combination right so.
common sense you are gon na have some debt however what does raise a red flag is.
, if I see that the loan demand quantity is less than what you already owe that.
Since that makes, raises a red flag for me as a private investor.
me think that youre simply gon na include on to your debt.
Since this loan is, rather of taking the cash to pay off the financial obligation so.
requesting is greater than what you currently owe then that makes good sense alright.
that makes good sense that suggests that youre gon na use this money to settle your.
debt fine however once again the factor this is thought about to be a riskier loan is.
because youve got significant negative hits not just that however the also finding.
public records and youve got minor delinquency also as far as like within.
the last thirty 4 months possibly you were late for a charge card payment fine.
that would be a small a significant again its like if you got foreclosed on for a.
home mortgage or youve got bankruptcy those are the significant ones so when those start.
getting hits as far as your credit history thats gon na make it a riskier.
Because you have bad credit history does not, loan fine but again simply.
always imply that your application is not gon na get approved its rather the.
contrary right due to the fact that at the end of the day the financiers want better return for.
their cash right so the higher the rates of interest the more willing they are.
to lend you money this one this person is requesting forty.
thousand right and its still thought about less of a danger right its thought about an.
a which resembles the finest type of loans applicant all right so and look theyre.
saying they make $18,000 a month right and theyve been employed for less than.
a year and they did not confirm their income right so this is for whatever.
factor right Lending Club is ruling out this a riskier loan than the.
other one I simply showed you for only twenty four thousand why is that this is.
Because when they pulled the credit this person had no delinquencies within, why.
the last two years however they did have a delinquency within the last thirty three.
months right so but you can see here they have no public records on file they.
have no collections as far as like medical expenditures and things like that.
and they have no significant bad offenses so no insolvencies no.
foreclosures absolutely nothing major right and appearance and this individual currently has financial obligation.
for forty 5 thousand dollars okay so as you can see here more weight is put.
on your credit rating as far as I public records and significant bad hits.
Due to the fact that you can, on your credit then whether or not you have a high credit rating.
see here this candidate has a lower credit history range then this individual.
whos thought about to be a greater danger right but they stated that they make.
$ 18,000 a month fine and their job title is local home supervisor so keep in.
When youre saying what your job title is its got ta reflect how much, mind.
money youre making fine you cant say youre making $18,000 a month and after that.
your task title is waiter at an Applebees or Chilis or something like.
that right not that theres anything incorrect with that everybodys got to make.
a living however what Im trying to get at is its got to make good sense right cuz if.
youre being available in here making some outlandish claims as far as like what.
you make month-to-month but meanwhile youre only a waiter thats gon na raise a red.
flag then youre gon na force Lending Club to.
confirm your work and confirm your earnings okay so thats why Im trying to.
inform you these things so you can avoid being warning implementing Lending Club.
to validate your earnings this individual is stating that theyve been employed for.
less than a year and its still thought about among the best applicants.
all right so be honest in your applications Im.
simply telling you what I try to find as far as you know if I would invest myself in.
this loan request however it doesnt necessarily imply that other investors.
will not lend you cash or not funds your loan fine so at the end of the day.
be truthful in your application and make it make sense right so lets wrap up genuine.
quick on what I search for in an application and what you need to do to.
avoid having your loan or your application getting red flag.