May 11, 2008

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.



3 comments:

TheLocoMono said...

Good breakdown. I am a bit more aggressive because of several reasons but all in all, hand-picking your loans is a great way to learn more about your investment experience.

passivefamilyincome said...

I like your strategy. I also use a similar strategy by having $25/week automatically withdrawn from my bank account. My goal is to fund 2, $50 dollar loans per month. I bid only on loans where people are looking to get out of credit card debt by lowering their interest. I never bid on a loan where people have had any public records. I have gone as low as a D loan but try and stay with the AA, A, & B loans.

Lulugal11 said...

I just sent some money to Prosper to fund my third loan. I pick the lower risk people because I do not have a lot of money where I can afford to lose it.

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