Mintos P2P Lending: Originator Selection, Autoinvest and More

I have been digging more in depth into P2P lending and since Mintos is my first ever platform it is inevitable that the learning curve is the steepest i will experience trying to navigate this domain. So far what i have noted down for myself when looking through different blogs, websites, reviews, comments, etc:

• All loan originators (lenders who let you finance their loans so they can give out even more loans) have the option for a buyback guarantee. There seems to be no logical reason to go for the loans without this guarantee as the extra risk does not seem to bring a substantial (if any) return on your investments. I made sure to untick the options for including loans without this guarantee. Buyback guarantee means that if the loan is late for 60 or more days, the loan originator will buy it back from the investors meaning you can get you money back and continue investing in new loans.
• Even if a loan has a buyback guarantee, it is not a 100% guarantee. Apparently there have been issues with a certain originator lately for not holding on to this guarantee.
• One of the worst things that can happen in this P2P lending world is if a loan originator should go bankrupt. This is where the investors will lose money from the loans of the originator. Also a good argument for diversifying across multiple originators. This has happened at least once in the history of this platform.
• If you want more control over which originators you want to focus on, there have been a few researches made to compare them to each other. I will include one link at the end of this post. They are not official and meant as a reference point only. In the end you are responsible for the final choice you end up making.
• Autoinvest diversifies the best if you have the max amount you want to invest with this specific strategy available on your account and your criteria includes enough loans from all the selected originators (dont forget to tick the "Diversify across loan originator" checkbox). I will go through a strategy creation flow in my next post.

Resources:

Lender ratings (unofficial): http://explorep2p.com/mintos-lender-ratings/

Forums discussing Mintos (unofficial):  http://p2pindependentforum.com/board/76/mintos

If you have calculated your risk tolerance and feel like you want to take on the risks of P2P lending for some extra earnings on your capital, be sure to use my referral link so that we both can earn some extra money for investing.