Prosper Update

Well it was inevitable! Out of the 13 loans I currently have, two are in collections and the rest are current. I can't really complain as my average interest rate is now over 20%. I have managed to maintain this high return while adding some better credit loans into my mix. My net gain is $34.28. Of course, that will decrease if either or both of the loans in collection are written off.

Overall, I would have to say I am quite happy with the Prosper system and my experience. I will continue to post updates as my portfolio grows.

Prosper update

I just wanted to post a quick update on my Prosper peer-to-peer lending status. I currently have a total of six loans outstanding, with an average interest rate of 19.48%. The principle amount of the loans is currently $373.29. So far, I haven't had anyone default on their loan, but it's really early in the game right now, so I don't expect that to continue indefinitely.

Bid On 4th Prosper Loan Won

Well this makes four out of four loans that are being reviewed, so I can only assume that every loan has some sort of review process after the bidding ends and before it is funded. So my general feedback on the whole Prosper lending process is that everything seems to take a lot of time.

I am very pleased so far, though, because my average return is over 20%, and I'm three for three, having recieved the first payment on all three of my existing loans. That makes me feel like I didn't lend any money to complete deadbeats.

I'll continue to post updates as things progress, and if you have any specific questions, please feel free to leave me a comment and I'll be happy to reply to anything.

I Got Paid!

Well I collected my first payment of $2.74 on an $80 loan, 99 cents of which is pure profit! That is certainly not a lot, but multiply that out over time and reinvetest the money, and I think I could make decent income after a bit. Sure beats making 4.25% in my savings account anyway. Right now, this is kind of a glorified hobby, but it really doesn't take up much time and how many hobbies do people have that actually MAKE money instead of COSTING money!

Prosper Borrowing Tips

Well I've bid on many loans now, and I have noticed that most of them just do not end up getting 100% funded. It occurs to me that anyone wanting to borrow some money might benefit to know some of the things us borrowers look for when bidding on a loan.

Remember that in essence, you are competing with all the other people who want to borrow money, so you DO have to market yourself. Prosper will categorize you according to your credit, and beyond that, it's pretty much up to you.

First of all, if you end up being scored anything less than "D" credit, you may want to consider trying to repair your credit a bit before listing your request. Of course, that may be the purpose of your request, and if that's the case, I say "go for it!" You won't get a loan if you don't try.

Next you need to figure out how much you would like to borrow and what interest rate you are willing to pay. There is a calculator you can use to figure out what your payments will be. I recommend only borrowing what you really need, and what you can afford. I do not like to bid on anything more than $10,000 simply because on a three-year loan, the payment seems really big. I want the borrower to be willing and able to pay this loan for the long term.

Choose the highest interest rate that you are willing to pay. Remember, that if you get enough bids to have your loan funded, this rate will likely be bid down to a lower rate. If you choose a rate that is too low, no one will bid on it.

Do not do automatic funding. It may seem like the quickest way to get your money, but there is no chance that your rate will be bid down, and it makes you seem desperate, which is not attractive to lenders.

Last, and most important, BE HONEST! Describe why you are in your current financial situation, what you are going to use the money for, and why lenders should trust you with their money. Remember, I am deciding whether to lend you my hard earned cash! I am not just going to give it to anyone who's asking for it. Answer any questions asked of you, and if possible, get endorsements from friends. It always means something to me that a borrower has someone who will vouch for them.

Well I hope this helps, and if you are looking for more info on Prosper, or want to join, please use my link below. Also, please feel free to ask me questions!

Third loan funded

Well my average rate is 20.33% now. I want to tell you that nothing ever seems to happen fast on Prosper. Once the bidding has ended and you are a winning bidder, Prosper says they will "occasionally" verify information from the borrower, which could take up to seven business days. Now I'm all for verifying information. If they tell me they make $80,000 a year and they only make $25,000, I have a big problem, but they don't really tell you this could happen until you win. Also, all three of my loans have had this review take place. One of them actually verified a day later, the most recent one took two or three days, and the other must have taken the full seven days. It just makes me wonder about that "occasional" part. Maybe I just got lucky and my three happened to be three of the "occasional" ones.

Well, my first payment is not due til August 27th, but I'm anxious to see how long it takes for me to get credit for it. I'll keep you posted!

More Prosper Lending Info

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.