Archive for the ‘consumer credit’ tag
Prosper.com Interest Rates are Increasing
An increased hesitancy to lend to high-risk borrowers is also apparent in moving Prosper.com interest rates for E and HR credit scores:
Prosper.com Interest Rate History - E & HR
After comparing these rates to interest rate trends over the last year, it is quite clear that Prosper.com rates most closely mirror the mortgage market:
Mortgage Rates Trend from Bankrate.com
 And they don’t tend to follow the consumer lending market:
 If you’re looking to predict Prosper.com interest rates, look toward the mortgage market, not the consumer lending market. P2P/Social Lending is so new that much of the interest rate growth could simply be a result of lenders becoming more saavy about default rates, fees and other expenses of lending.
 What do you think? Can we use mortgage rates or consumer lending rates as social lending indicators?
