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My Experience With Harmoney

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  • My Experience With Harmoney

    Hello Everyone,

    I saw that there were no posts here, so I thought I'd weigh in.

    I signed up to Harmoney in April 2015 to give it a go with a modest amount, and drip fed cash allowances from work in each fortnight, on paper, it looked like an excellent (too good to be true) investment platform.

    I should include my disclaimer here that I'm no expert when it comes to finance, and my impressions could be completely wrong...

    The initial sign-up was fantastic. The site used my webcam in order to capture information such as my driver's licence for proof of identity and other such administration. It took maybe a day to be up and running, and I think the minimum amount initially for investment was $500 (was a while ago, may not have remembered it correctly). Fees were pretty small, around 1.25% of each payment. This means that your returning principal is also "taxed" by this margin too.

    Loans were presented in grades, from A to F. I chose mainly F grades (I like to live dangerously) just for a bit of fun, they were normally around 38% interest and had a 15% chance of default. You invest in each loan in $25 increments. A progress bar is displayed next to each loan, as well as information regarding borrower's income, reason for loan, and other relevant factors.

    Over the next few months, Harmoney introduced ways for borrowers to refinance, and this is where I went off Harmoney a lot. A borrower could completely refinance their loan, and all fees went to Harmoney. This effectively means that the investor purchases multiple, high risk loans. Some of the high risk loans that prove to be solvent are then given the option of re-financing. When this happens, all of their principal is refunded immediately to the investor, removing one of the "good" loans from the pool of high risk investments. Both my brother and I decided to stop investments after this change.

    The dashboard on Harmoney's site provides a good level of information. It displays gross interest, principal received/invested, and even your RAR (realised annual return) which is a gross figure of how much you're getting back, after losses. When I added up my principal in vs loans charged off, then added interest, my total principal had actually decreased, but my RAR was indicating 11%, hence my disclaimer of not really understanding how it works. It seemed to me as though I was losing money, but the site was telling me that I was making a killing (when you compare it to the current term investment rates).

    Harmoney is now a waste land. I go in there looking to see whether there are any loans to buy, but normally I'm confronted with not even one.

    Would I recommend Harmoney? No, probably not. Sorry. I've wasted your time.


  • #2
    Originally posted by Sebness View Post
    Hello Everyone,

    I saw that there were no posts here, so I thought I'd weigh in.

    I signed up to Harmoney in April 2015 to give it a go with a modest amount, and drip fed cash allowances from work in each fortnight, on paper, it looked like an excellent (too good to be true) investment platform.

    I should include my disclaimer here that I'm no expert when it comes to finance, and my impressions could be completely wrong...

    The initial sign-up was fantastic. The site used my webcam in order to capture information such as my driver's licence for proof of identity and other such administration. It took maybe a day to be up and running, and I think the minimum amount initially for investment was $500 (was a while ago, may not have remembered it correctly). Fees were pretty small, around 1.25% of each payment. This means that your returning principal is also "taxed" by this margin too.

    Loans were presented in grades, from A to F. I chose mainly F grades (I like to live dangerously) just for a bit of fun, they were normally around 38% interest and had a 15% chance of default. You invest in each loan in $25 increments. A progress bar is displayed next to each loan, as well as information regarding borrower's income, reason for loan, and other relevant factors.

    Over the next few months, Harmoney introduced ways for borrowers to refinance, and this is where I went off Harmoney a lot. A borrower could completely refinance their loan, and all fees went to Harmoney. This effectively means that the investor purchases multiple, high risk loans. Some of the high risk loans that prove to be solvent are then given the option of re-financing. When this happens, all of their principal is refunded immediately to the investor, removing one of the "good" loans from the pool of high risk investments. Both my brother and I decided to stop investments after this change.

    The dashboard on Harmoney's site provides a good level of information. It displays gross interest, principal received/invested, and even your RAR (realised annual return) which is a gross figure of how much you're getting back, after losses. When I added up my principal in vs loans charged off, then added interest, my total principal had actually decreased, but my RAR was indicating 11%, hence my disclaimer of not really understanding how it works. It seemed to me as though I was losing money, but the site was telling me that I was making a killing (when you compare it to the current term investment rates).

    Harmoney is now a waste land. I go in there looking to see whether there are any loans to buy, but normally I'm confronted with not even one.

    Would I recommend Harmoney? No, probably not. Sorry. I've wasted your time.
    An auto payment goes into my Harmoney account every fortnight - within a day or two all of it has been lent out against A1-C5 loans... thank you Auto-Lend!

    Delinquency is infrequent and not a single write-off has occurred the year I have been using Harmoney, my RAR is 15%.

    All I say is the "F" rating is there for a reason...





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