Comments on: Prosper vs. Lending Club SmackDown–Who has the best interest rates?

By: yung

yung — Fri, 30 Dec 2011 17:36:30 +0000

i got a prosper loan the same day i posted it and my credit grade was a D on prosper. I paid the loan back in 3 years and never missed a payment. I borrowed 6,000 and paid back about 7,450. It was fast and easy monthly payments. I would lend money in a heart beat on here but prosper doesn’t take lenders in ohio as of yet

By: Eric

Eric — Mon, 06 Jun 2011 20:20:52 +0000

I do believe prosper is acting in line with lending club because as a lender on prosper this is NOT how they conduct buisiness now. Prosper assigns the interest rate based on their proprietary rating which takes into account a credit score and other factors. You can simply invest or not invest based on your strategies and willingness to assume a certain level of risk for a return.

By: mike

mike — Tue, 21 Dec 2010 19:23:27 +0000

Bidding down a loan is a great idea once fully funded but I have lent on several “A” loans on Prosper where the final interest rate is well above 15% for the borrower. What happens is that Lenders look for these A-B credit loans that are not fully funded and in the final minutes of bidding. They will ofter shell out just enough to fully fund the loan at the high interest rate. There is no guarantees that the loan will be fully funded and be bid down.

By: Adam

Adam — Thu, 20 May 2010 20:08:20 +0000

I was on board with Prosper when they first started, I think it was 2006? Anyway, I dove in and invested in 11 loans with an average credit rating of B-. All told after three years I had lost 15 percent of my original principal. I had four loans of the 11 default in the very first year. Since those initial defaults I stayed away from Prosper. I still love the idea but the loss potential seems very high.

By: john

john — Mon, 26 Apr 2010 00:25:20 +0000

because banks wont give them loans*

By: john

john — Mon, 26 Apr 2010 00:24:19 +0000

I think prosper and lending club were created for individuals who want higher gains than their current banking accounts without going through the difficult and difficult process of learning about stocks, bonds and other financial instruments instead spending a couple of hours reading the publications on the sites, “blogs’, reviews and the general terms involved. It’s a lazy man’s investment and one that has infinitely more risk than other investment vehicles; namely they have the borrowers have NO OBLIGATION or Incentive to pay you back. And often your lending money to people who have that very tendency; this is why they are imploring for money on these sites because the bank’s will give them loans; they wouldn’t touch most of these creditors with a 10 foot pool with a 100 dollar 100 percent apr loan.

By: SB

SB — Wed, 06 Jan 2010 00:21:41 +0000

Excellent post. Between yours and NorCalSavant’s post about this on his/her blog, it has been immensely informative for me. I am looking at lending and might seem to be leaning towards Lendingclub.

By: Lender

Lender — Fri, 17 Apr 2009 04:08:34 +0000

There’s really no buyer for your notes, unless you sell for a loss. Recently, the number of people lending money have dropped off drastically. As for you paypal deposit, you have to use it all with LendingClub or they’ll lock your account out. Imagine that, having your account locked out when it’s not even in the contract.

A company that makes up new unadvertised rules with your money. You decide.

By: DR

DR — Wed, 14 Jan 2009 01:15:10 +0000

zylstra, that’s right. Prosper originally filed an S-1 registration statement with the SEC first, but messed it up. Now they are behind Lending Club. The big difference is that LC has a secondary market for its notes where investors can buy and sell existing loans. Prosper won’t be able to do this until its S-1 goes effective.

By: zylstra

zylstra — Tue, 13 Jan 2009 08:59:40 +0000

bill, not so fast; Prosper is simply going through the same registration process with the SEC that Lending Club did a few months ago.