My Experience With Prosper
My chronically late borrower (Who hasn’t made a payment since Sept 06) was a credit grade E, homeowner, verified, with a 7% debt to income ratio. Correction, the borrower has never made a payment. Most of the other loans fluctuate around “on time” and “<15 days late”, and the other rather late one is a C credit grade.
My HR (high risk) borrower with 30% debt to income and 6 delinquencies is currently paying on time, and the NC (no credit) borrower is chronically just a bit late (the < 15 days). So I’m not sure that credit score is helping me here. I’m kinda disappointed, I wanted Prosper to work out. Maybe if I’d stuck more money into it and had a bigger “portfolio” of loans the one person who is apparently never going to pay wouldn’t have been as big a deal.
The high cash balance is mostly because I had made a sixth loan that was paid in full after a couple of months. Now I’m not sure whether to pull that cash out or to put a bit more in and try one more time. Probably I’ll just wait around a bit until it comes up to $50 and loan it out again. I want this system to work, I guess there’s just a high risk with the high reward.