Tag Archives: p2p

Late on Prosper

So right now I have 8 active loans on Prosper.com, for $50 each. Up until this month, each borrower has paid on time, which had me starting to believe in the power and potential of PSP lending.

Then, one of my borrowers went late. She’s still less than 15 days late, so it hasn’t even got to a collection agency yet, but I’m a little worried.

The good news is that I made $25 in a Prosper referral and between that and the interest I’m making on the other loans (as long as they don’t default too, knock on wood) means that I’ll end up making back the $50. But that kind of defeats the purpose of investing, if I end up barely back where I started.

Maybe this listing just had too many warning signs. The woman had to relist 3 times in order to get her listing funded. The debt-to-income ratio was way too high for the measly 13% interest rate it got funded at.

well, I’ll remain hopeful that this woman is just having a bad month and she’ll pay me back. But I’ve learned my Prosper lesson – only lend to people who are employed (students are not good investments, even if you want to help them study abroad!) — The people who really should be getting funded on prosper are those who have full time jobs, make more than they spend, and are trying to pay off high-interest credit cards. Then you’re really both helping each other out right now.

Care to Prosper? P2P Lending Update

I’m rather risk adverse when it comes to my finances, but the idea of person-to-person lending has enough reward behind the risk for me to take some chance on the newly-minted credit market.

My Prosper plan is to handpick one listing per month to fund. I transfer $50 from my paycheck to Prosper and decide on a listing that I think is worthy. Most often I chose folks in the A or AA category (though I recently went as low as C) and I pick people who are trying to get a lower rate on their credit debt or who need smaller amounts of money for important things like house repairs, doctors bills, etc. I try to stay away from business loans.

Here’s an update on how my Prosper accounts are doing (none have defaulted yet, knock on wood.)

Total Account Value: $357.43
Amount Invested: $350

Average Interest Rate: 14.76%

[[6 loans out, $50 each]]

Loan Title $ Interest
Rate
Credit
Grade
Principal
balance
Paying off/ Consolidating Credit Cards $50.00 16.00% C $0.00 Current
Let me pay you instead $50.00 17.00% B $1.06 Current
Termites have destroyed my home, $50.00 15.55% A $2.21 Current
Paying off Adoption Credit Debt $50.00 19.33% B $2.11 Current
Help Me Study Abroad ** Relist #2** $50.00 13.00% B $4.66 Current
Emergency Home Repairs – Winter $50.00 7.00% AA $5.06 Current

Business & Personal Loans. Great Rates. Prosper.