Lend Smart and Prosper

Data last updated:
Friday October 26th 2007  

About this Chart:
The chart is of active Listings that are 90% or more funded. For each Credit Grade the Max and Min Interest Rates are shown as a bar, and the Average Interest Rate is shown as a point.

Note: Click on a credit grade to see active listings.

Lenders

How to be Successful

Becoming a lender on Prosper.com is easy, but making money is not guaranteed. Like all investments it involves risk, and because it is a relative new investment strategy for individuals the risks are not clearly understood. As a Prosper.com Lender you look for loans in the form of listing that you would like to invest in. As a lender there are three main worries.
  1. Will this listing get full funding (i.e. become a loan)
  2. Will someone else under bid me
  3. Will this listing default as a loan
New Lender Tool
Review active listings that have 90% or more funding. Compare their interest rates and DTI with historical data through regression analysis.

Active Listings


Debt to Income (DTI)

A borrowers outstanding debt plays a large role in their ability to repaid any new Prosper.com loan. The outstanding Debt is measured as their Debt to Income ratio, or DTI.

Loan Defaults

One of a lenders biggest concerns is investing in a loan that defaults before it is re-paid. Below is a chart of the Age vs Interest Rate of defaulted loans.

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