you will notice that - very few of the loans at Prosper that are one month late do recover - many loans at Prosper do not default initially since Prosper defines default as debt sale and keeps loans in 4+ month late - overall defaults for old loans average around 20% at Prosper
Jason
· 1 year ago
I have lent some money using prosper, and I am about to try out lending club in the next couple of days, as soon as my money goes through.
To me the stats are irrelevant. I don't think people are less likely to default because it is one site rather than another, in the end the default rate are going to depend more on credit and economy than anything else. IMHO.
You can see how lending club goes on my blog in a couple of weeks. If you are interested, they are offering a referral deal like prosper's $25 after you fund your first loan.
Jason, I agree. It doesn't matter where the borrowed funds are coming from, in the end an individual is going to either pay or default. Aggregately, the default rates will be higher for loans with higher-risk borrowers.
Personal Loan Portfolio
· 1 year ago
I had no issues verifying my identity on Lending Club. I am surprised to hear that the process could go bad because it was rather simple.
"I would take LendingClub’s stats with a grain of salt."
I think that both Prosper and Lending Club websites are understating the risk.
"Prosper’s default rate hovers at about 2.7 percent, Larsen said, but that figure is expected to rise as more loans mature." Source: http://www.msnbc.msn.com/id/21993720/ A huge understatement.
Living Off Dividends
· 1 year ago
I can't think of a good reason to use one over the other. I'm currently using Prosper and my default rate is lower than the average. I think it depends on the types of people to loan to.
Willy
· 10 months ago
This is really old. Prosper defaults are horrendous. No prospective borrowers are denied and the bidding process tends to push interest rates too low. Prosper is not granting loans now (early 2009) while awaiting SEC review. They really need to revise the model before starting up again.
All Comments
you will notice that
- very few of the loans at Prosper that are one month late do recover
- many loans at Prosper do not default initially since Prosper defines default as debt sale and keeps loans in 4+ month late
- overall defaults for old loans average around 20% at Prosper
To me the stats are irrelevant. I don't think people are less likely to default because it is one site rather than another, in the end the default rate are going to depend more on credit and economy than anything else. IMHO.
You can see how lending club goes on my blog in a couple of weeks. If you are interested, they are offering a referral deal like prosper's $25 after you fund your first loan.
http://www.lendingclub.com/refer.action?referre...
"I would take LendingClub’s stats with a grain of salt."
I think that both Prosper and Lending Club websites are understating the risk.
"Prosper’s default rate hovers at about 2.7 percent, Larsen said, but that figure is expected to rise as more loans mature." Source: http://www.msnbc.msn.com/id/21993720/ A huge understatement.