Who is Prospering from Prosper?

AdvisorGarage

It would be great to hear if anyone has used Prosper yet in terms of either lending money or borrowing money?
Any insights into this service?
Andrewhttp://www.AndrewIve.com</A>
 

AdvisorGarage

Thanks John.  I created a group on Prosper and have introduced it to our members but they have been underwhelmed and no one has signed up so far. Perhaps it needs to be around for longer or maybe their business model needs some tweaking...
Andrewhttp://www.AndrewIve.com</A>
 AdvisorGarage2007-4-9 17:14:20

efoozle

I currently have 17 loans out and have been making money on Prosper. I like the service and continuously add money to build my portfolio of loans. JohnCorey mentioned that there is a large number of borrowers which is true but as a lender I find that sometimes there is a lack of borrowers that meet my requirements.

ChefTracy

So what are your requirements?  Are they requirements that would not give people with bad credit ratings a chance?  I`m thinking about trying to get a loan, but my credit isn`t up to par.

efoozle

So what are your requirements?  Are they requirements that would not give people with bad credit ratings a chance?  I`m thinking about trying to get a loan, but my credit isn`t up to par.    On Prosper everyone has their own approach. Some people want to assist high risk borrowers and some want ask close to perfect credit as they can get. My requirements fit a profile that I believe minimizes risk but still allows a decent return.     I ran some calculations and determined that if you are not loaning money above 9% then you might as well put it in a free premium interest checking account. Since the high interest checking doesn`t have any risk and Prosper does you have to add in for the risk in which I added 4%. This means that if a loan goes under 13% I don`t bid on it.     The next part is credit grade, Prosper gives AA through E and then HR for High Risk and NC for No Credit. I lend anywhere from AA to C at 13% and D at 14%. After D the risk becomes to high and I don`t want to lend.     Both of these sections are easy to lend to but I go a few steps further and tack on a few more things. Like they cannot have any current delinquencies, no more than 3 in the past 7 years, must be a home owner, etc..     Then I look at the overall profile and decide from there. This is just my strategy, everyone has their own goals. People get funded every day with a wide range of credit grades and situations. As for giving people a chance with bad credit ratings, it depends what you call bad.