Sidehustle: P2P Credits

P2P credits are nothing new but they are still growing all over Europe right now. New platforms are starting all the time. One after another pops up so I gave it a go too.  If you can share new platform names with me, I am more than happy to try them out!

My strategy is to invest and build a machine that (one day) pays my daily living cost. I don´t follow the noise of slowlane) buy and hold or save for later when it comes to P2P credits. I invest to play and only in short term.

Here are my experiences so far:

1) Mintos: Awesome

This is great, I love Mintos. After months of fiddling and testing around, I found my own technique to make a small income from short term loans.

Net interest income so far since starting to invest:
On April 10th:  3.19 EUR
On April 24th:  4.27 EUR

We are talking small money here. Tiny, because I didn´t invest a big amount into the platform and I usually slice the single investments into 10 Euros at a time. However if you want to put more money into the platform, I am sure you can increase the returns easily. Before you invest large sums, I recommend going through the learning process first though. That is imperative!

So far I have 65 finished investments in countries all over the world. Some were late, but apart from a few test drives I only invest in the money-back guarantee investments and always got my money back. A little bit of experience will help you to find the good loan originators. What I did was to simply test them out first by investing 2-3 small amounts per country and loan originator. I did this for 4 months now and I can now see the trends and I know where to invest and where not.

-> My tip: 
The paying back morale in countries you would think are unreliable often turns out to be quite positive. And in return the so called "rich" countries often happen to be late in paying back. So, push your prejudices aside and start to test out the different countries and loan originators to make your own experiences.

Mintos Platform Beispiel Loan Liste

2) Bondora:Ok but..

Looks like a cockpit, but ok if it works why not..? I spend 4 months on there, still today, every time I log in, I see more and more of my investments having changed to status "late", which no investor likes to see or hear.

I feel annoyed because this platform just looks nice but I can´t really do anything as my investments were done by autopilot, some of them 60 months long. So, I´m kind of stuck with them unless I sell to the secondary market. Manual investments are not possible unfortunately and there is no buyback guarantee. Therefore I  have now installed the automatic reinvestment tool which only invests into short term loans.

-> My tip: check out the secondary market. I am sure that it is possible to earn money with high interest rates (sometimes astronomical because the risk is so high)  if you know what you are doing!!!

Bondora Cockpit

3) Twino: Run for the hills!

I signed up in January too and loaded 100 EUR on there immediately. Since then I had regularly logged in as I wanted to invest manually. But there were never any available investments. Months passed with nothing visible, no investments showing up even without any filters. That was weird, so I requested to cancel my account and reverse the money a few weeks ago.

The answer by Twino was unbelievable: They refused to do so and told me to use auto invest accompanied with a standard nameless call-center message. They still refused to execute my request even after my second message. Seems like Twino does not know how to treat customers, thanks to whom they are making a living. That left me puzzled.

To end the story: I had to tell them 3 times to shut down the account which they finally did (at least) and the money was reimbursed shortly thereafter.

--> Something smells very sketchy if an investment platform does not have any investments and on top of that the customer service is unprofessional. 

Twino start page

Recap and a word of warning: 

I like to play with these small loans and I think it´s better not to invest large sums into P2P credit platforms. I expect any of these platforms to crash at any time. Although they seem to be going well and I hope that it keeps going strongly, the possibility is always there. I compare this to investing in stocks: I just use "fun" money I don´t need for survival.

If your strategy is to invest more long term then my advice here is surely not helping you. In that case I can recommend youtuber Kolja (in German only). Youtube will automatically suggest stuff in your main language.

--> IMPORTANT: Please do check how you have to pay your tax on this income. I cannot recommend to hide this to your authorities.