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.
Will this listing get full funding (i.e. become a loan)
Will someone else under bid me
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.
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.
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.