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03-17-2017, 09:40 AM #1
More Personal Loan Lenders
Both Goldman Sachs and American Express want to get into the personal loan space. They say it is to help you pay off loans. I think they just want a piece of the action that seems dominated by Chase credit cards right now. (Remember, a lot of Amex cards must be paid in full each month.)
Regardless, my guess is that this will not end well. Just look at Lending Club and others in this space struggling with underwriting, restrictive lending rules, and high default rates.
03-17-2017, 12:07 PM #2
Lower rates should be a salve to help people pay off their debts. Not an excuse to lever up. And yet we do just the opposite. Refinance to a lower rate and then add more debt so absolute payment amts remain the same is a dangerous game. Especially in a world of rising rates.
03-20-2017, 09:43 AM #3
Auto debt up, student loan debt up, credit card debt up again. And with default rates rising.
Seems like the perfect time to get into unsecured consumer loans.
03-21-2017, 08:17 AM #4
Consider the bad news surrounding Lending Club and Prosper, why is anyone getting into this space?
03-22-2017, 10:07 AM #5
I went to the bank today ... actually had to go in the branch. And they wanted to sell me on a car loan or a personal loan or even a HElOC. Wasn't even a Wells Fargo.
Damn credit pushers.