There's not a lot new to report, just that I have another loan pending to be funded. This one's at 26.50%! My other loans have averaged 16.54%, still not shabby. The only thing is it was "automatically funded." This means that as soon as there are enough bids, the bidding ends and the loan is funded. I thought that was a good thing, but it seems the default rate for these types of loans is a lot higher. The theory is that these borrowers are either more desperate, not financially savvy, or just do not understand the Prosper borrowing process. At any rate, I'm hoping to not have to deal with any defaulted loans, but eventually I do expect it will happen. If it does, Prosper works with two collection agencies to collect the debt, for a fee, of course.
I have also discovered the joys of referring to Prosper. They will pay $25 if I refer a lender, and a percentage of the loan amount if I refer a borrower. They must become "active" which means as a lender they have a loan funded, or as a borrower, they make their first payment on a loan. So far I have referred 10 people who have signed up, so I'll see how many actually become active.
Of course, I have to put my own plug in here, so if you do want to become a Prosper borrower or lender, please click my link to get there!
I hope you find this information useful. Thanks for reading and I'll keep you updated.
No comments:
Post a Comment