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Author Topic: Bitcoin Credit Bureau  (Read 2491 times)
SgtSpike
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June 15, 2012, 06:50:40 PM
 #21

I suppose I could implement something that could divide between different lenders...  The borrower could just as easily request multiple small loans and divide it up that way.  That would be much easier to program and less prone to failure.  Would having to make multiple loan requests be a huge problem for you?  What could some of the complications be?
I'll just say this much:  The popularity of P2P USD lending is, in part, due to lenders being able to diversify their loans so as to mitigate the risk of default.  A person with $10,000 would much rather invest $100 each into 100 loans than the full $10,000 into 1 loan.  That way, if one of the loans is defaulted on, it's not such a big hit, whereas the $10,000 loan defaulting would be devastating.

The loans could be split up by the person requesting them, but then, the person requesting them wouldn't know how much each lender wants to lend, so how would they know what to split the loan into?

It's more programming to implement this, I agree, but in my opinion, you're going to lose out on a lot of potential lenders if you don't allow this type of fractional lending.
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bombartier357
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June 15, 2012, 07:03:49 PM
 #22

I suppose I could implement something that could divide between different lenders...  The borrower could just as easily request multiple small loans and divide it up that way.  That would be much easier to program and less prone to failure.  Would having to make multiple loan requests be a huge problem for you?  What could some of the complications be?
I'll just say this much:  The popularity of P2P USD lending is, in part, due to lenders being able to diversify their loans so as to mitigate the risk of default.  A person with $10,000 would much rather invest $100 each into 100 loans than the full $10,000 into 1 loan.  That way, if one of the loans is defaulted on, it's not such a big hit, whereas the $10,000 loan defaulting would be devastating.

The loans could be split up by the person requesting them, but then, the person requesting them wouldn't know how much each lender wants to lend, so how would they know what to split the loan into?

It's more programming to implement this, I agree, but in my opinion, you're going to lose out on a lot of potential lenders if you don't allow this type of fractional lending.

This is great input thank you.  I could implement package loans.  Where a loan could consist of hundreds of smaller loans.  When the lender would like to lend a particular amount he could type in the number of small loans he would like to take on much like shares...  This would not be that difficult because it would not deviate far from my currently implemented coding.  What do you think?
SgtSpike
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June 15, 2012, 07:41:57 PM
 #23

I suppose I could implement something that could divide between different lenders...  The borrower could just as easily request multiple small loans and divide it up that way.  That would be much easier to program and less prone to failure.  Would having to make multiple loan requests be a huge problem for you?  What could some of the complications be?
I'll just say this much:  The popularity of P2P USD lending is, in part, due to lenders being able to diversify their loans so as to mitigate the risk of default.  A person with $10,000 would much rather invest $100 each into 100 loans than the full $10,000 into 1 loan.  That way, if one of the loans is defaulted on, it's not such a big hit, whereas the $10,000 loan defaulting would be devastating.

The loans could be split up by the person requesting them, but then, the person requesting them wouldn't know how much each lender wants to lend, so how would they know what to split the loan into?

It's more programming to implement this, I agree, but in my opinion, you're going to lose out on a lot of potential lenders if you don't allow this type of fractional lending.

This is great input thank you.  I could implement package loans.  Where a loan could consist of hundreds of smaller loans.  When the lender would like to lend a particular amount he could type in the number of small loans he would like to take on much like shares...  This would not be that difficult because it would not deviate far from my currently implemented coding.  What do you think?
I think people would raise an eyebrow at something like that.  I'd much rather see this:

Quote
Loan A: $300/$10,000
Loan B: $100/$1,000

Than this:
Quote
Loan A.1: $10
Loan A.2: $10
Loan A.3: $10
Loan A.4: $10
Loan A.5: $10
...
etc, etc, you get the idea

Now, if you can do the multiple loans thing in the background, and make it seamless to the end user, then I suppose it doesn't matter how you do it.  Just don't make a lender or borrower look at pages of tiny loans that are all, ultimately, part of the same loan.
bombartier357
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June 16, 2012, 03:19:01 PM
 #24

I would probably look something like this.

loan A 126/2000 @ 1.2 btc each
loan B 334/1000 @ .5 usd each

Would that work for you?
SgtSpike
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June 18, 2012, 05:23:57 AM
 #25

I would probably look something like this.

loan A 126/2000 @ 1.2 btc each
loan B 334/1000 @ .5 usd each

Would that work for you?
That'd be perfect.  Wink
Bitcoin Oz
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June 18, 2012, 05:33:09 AM
 #26

I would probably look something like this.

loan A 126/2000 @ 1.2 btc each
loan B 334/1000 @ .5 usd each

Would that work for you?

This would be great  Smiley

stochastic
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June 18, 2012, 11:19:08 AM
 #27


It would be similar, but very streamlined.  This website also is limited for lending.  There are very few ways to record their actual history.  My database would record their total lent or borrowed, debt, number of loans taken and completed, number of late days for their loans, and I was thinking about having people tie their facebook/linkedin accounts as well to their credit.


What do you mean? Prosper uses the credit scoring of its borrowers.  There may be some slight problems with the credit score equations but no one doubts that the fico score was a brilliant invention.

If someone can't pay back or is late on their student loan, credit card or mortgage, then they will definitely be late or default on their bitcoin loans.

Introducing constraints to the economy only serves to limit what can be economical.
nedbert9
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June 18, 2012, 09:19:45 PM
 #28

I suppose I could implement something that could divide between different lenders...  The borrower could just as easily request multiple small loans and divide it up that way.  That would be much easier to program and less prone to failure.  Would having to make multiple loan requests be a huge problem for you?  What could some of the complications be?
I'll just say this much:  The popularity of P2P USD lending is, in part, due to lenders being able to diversify their loans so as to mitigate the risk of default.  A person with $10,000 would much rather invest $100 each into 100 loans than the full $10,000 into 1 loan.  That way, if one of the loans is defaulted on, it's not such a big hit, whereas the $10,000 loan defaulting would be devastating.

The loans could be split up by the person requesting them, but then, the person requesting them wouldn't know how much each lender wants to lend, so how would they know what to split the loan into?

It's more programming to implement this, I agree, but in my opinion, you're going to lose out on a lot of potential lenders if you don't allow this type of fractional lending.

+1000


Anticipating this one.
bombartier357
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June 18, 2012, 11:11:09 PM
 #29


It would be similar, but very streamlined.  This website also is limited for lending.  There are very few ways to record their actual history.  My database would record their total lent or borrowed, debt, number of loans taken and completed, number of late days for their loans, and I was thinking about having people tie their facebook/linkedin accounts as well to their credit.


What do you mean? Prosper uses the credit scoring of its borrowers.  There may be some slight problems with the credit score equations but no one doubts that the fico score was a brilliant invention.

If someone can't pay back or is late on their student loan, credit card or mortgage, then they will definitely be late or default on their bitcoin loans.

The score is actually not very useful.  I worked in the car industry for a long time and frequently looked at credit reports.  The finance department mainly looked at the lending data and not the score, because it had more information about their history.  I would rather not implement a cookie cutter solution to credit that people will have an easy time digesting.  Lenders need to have a complete understanding of what makes a borrower credit worthy rather than simply looking at a 3 digit number.
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