Archive for the ‘prosper.com’ tag
Prosper - Let’s Bank on Eachother
This is on YouTube, but I’d like to share it with my readers:
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?
The Last 6 Months on Prosper.com
I funded my first Prosper.com loan in the middle of February, 2008. I’ve been participating in social lending on Prosper.com for 6 months now. Side note: I remember that because I started dating my current girlfriend around the same time I funded my first loan. So far, my returns have been solid and Prosper.com has performed well-above my expectations. For the first couple of weeks, I browsed borrower profiles and hand-selected some borrowers. After realizing I didn’t have time to evaluate each person’s financial needs, I set up a solid standing order that has yet to disappoint me. I used Prosper.com API data as served up by Eric’s CC to identify sensible lending criteria.
I’ve funneled $1600 into Prosper.com. My initial investment was $1000, followed by a $500 input and another $100 input.
And here are my results:
Net Gain:Â $99.14
Total Value of Loans: $1707.95
Daily Interest Accrual: $0.61
Avg. Interest Rate: 13.47%
I must say I’ve been quite pleased with my results. I have 0 defaults and only a couple of payments that have come in late. I’m funding 23 loans.
Prosper has definitely treated me much better than the stock market. The S&P 500 is down 4.98% since February 15th.
How have your Prosper results been? Am I getting lucky?
Dan
