More LendingCrowd Accounts Earn 4thWay PLUS Ratings

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By on 1 July, 2018 | Read more by this author

https://www.4thway.co.uk/?p=14133

LendingCrowd's Growth and Income peer-to-peer lending accounts, including the IFISA versions, have now earned “Excellent” 4thWay PLUS Ratings.

Previously, just LendingCrowd's Self Select lending account and IFISA had earned a rating.

Why have these accounts been upgraded so soon?

The two LendingCrowd* accounts have been awarded ratings just a few weeks after our last assessment. The reason is due to receiving additional information about the accounts.

The Growth and Income accounts do not have capped interest rates. Many comparable accounts from other peer-to-peer lending websites that automatically spread your money across loans do cap rates, while not setting a minimum that you might earn. The capped rate in those accounts is therefore the maximum you can expect to receive.

With no cap at LendingCrowd, the maximum you could receive is linked to the actual interest rates and fees paid by the borrowers, minus LendingCrowd's cut.

The 4thWay PLUS Ratings are based on stress tests in a variety of disaster scenarios to show whether the interest earned is sufficient to protect the average lender from losing money to bad debts.

Reward side better than expected

With the interest rates uncapped, this has improved the “reward” side of the equation by boosting interest a few extra percentage points from around 6% to around 9% before bad debts. The risk side is unchanged.

After recalculating based on this new information, LendingCrowd's two automated accounts now join the Self Select account in earning the ++ 4thWay PLUS Rating (Excellent). This is the second-highest rating.

LendingCrowd is on course to receive the top rating of +++ (Exceptional) if it maintains its interest rates and level of bad debts for a good while longer.

Visit LendingCrowd*.

Read the 4thWay LendingCrowd Quick Expert Review.

LendingCrowd Description

LendingCrowd is unique in doing unsecured peer-to-peer small business loans in three ways. It is the only one to focus these loans in Scotland; the only one to provide us with sufficient information to do a detailed assessment of the risks and the only one to allow lenders to choose loans for themselves, if you want to.

It has completed tens of millions of loans since 2014 with auto-lend or self-select, auto-diversification and early exit. All its lending accounts are available in an IFISA.

The opinions expressed are those of the author and not held by 4thWay. 4thWay is not regulated by the ESMA or the FCA, and does not provide personalised advice. The material is for general information and education purposes only and not intended to incite you to lend.

Experts, journalists and bloggers who conduct research and write articles for 4thWay are subject to 4thWay's Editorial Code of Practice. For more, please see 4thWay's terms and conditions.

The 4thWay® PLUS Ratings are calculations that were developed by professional risk modellers (someone who models risks for the banks), experienced investors and a debt specialist from one of the major consultancy firms. They measure the risks and rewards of losing money in scenarios up to a serious recession and a major property crash, and they assume you spread your money across lots of loans and rated P2P lending accounts or IFISAs. The rating is calculated using objective criteria that can be measured and improved on over time, although no rating system is perfect. Read more about the 4thWay® PLUS Ratings.

*Commission and impartial research: our service is free to you. We already show dozens of P2P lending companies in our accurate comparison tables and we keep adding more as soon as they provide us with enough details. We receive compensation from LendingCrowd and other P2P lending companies not mentioned above when you click through from our website and open accounts with them. We vigorously ensure that this doesn't affect our editorial independence. Read How we earn money fairly with your help.

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Today’s average interest rates

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There's the savings way, the property way, the stock-market way, and now there's the peer-to-peer lending way. The 4thWay® to save and invest.
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We help people save and make more money, more safely when they cut out the banks and lend directly to other people and to businesses.

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Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers “bonds”. Unlike its P2P lending service, its bonds don’t allow you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

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Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers two “bonds”, one of which is available as an ISA.

Unlike its P2P lending service, neither of these bonds allows you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers two “bonds”, one of which is available as an ISA.

Unlike its P2P lending service, neither of these bonds allows you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×

Why are Orchard’s interest rates different?

Orchard’s lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Orchard’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Got it

×

Why are Wellesley’s interest rates different?

Wellesley’s P2P lending rates appear higher on its own website than on 4thWay®.

This is because we calculate Wellesley’s interest rates the same way most other P2P lending websites do. We do this so that you can compare the rates more easily and so that they show a more accurate picture of what you’ll earn.

Important information before you visit Wellesley & Co.

Wellesley & Co. is primarily a P2P lending website.

But, when you visit the Wellesley website, you’ll see that it also offers “bonds”. Unlike its P2P lending service, its bonds don’t allow you to lend directly to 100+ borrowers.

Instead, you lend to Wellesley and it lends to other borrowers.

We have not risk-rated either of those bonds, but we expect that their structure makes them more risky, particularly because you’re lending to just one borrower.

Got it

×
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