Being that I am in debt elimination mode I haven’t talked about my investments that much.  But on February 15, 2007, I was intrigued by the idea of Prosper and have since built a very very small portfolio.

As the P2P Lending market grew so did the competition and Prosper and LendingClub both went into quiet period as they upgraded their services.  While LendingClub came out of their quiet period a few months ago, I just received an e-mail from Propser stating they are back up and running.  During Prosper’s quiet period I was removing most of my gains, so as far as my current risk, it is very small right now.

What Changes did Make?

Prosper EMail

Straight from their site:

  • Increased Layers of Security
  • Fine Tuned Bidding for Lenders
  • Trade Existing Loans

Increased Layers of Security at Prosper.Com

Prosper now boasts that,

Those of you who are returning lenders will be familiar with our bidding system on Direct Peer-to-Peer loans:

New borrowers are now required to meet the new minimum credit score requirement of 640. They can request up to $25,000 for a three-year fixed rate loan.

Lenders can now start their bidding with $25.00 (previously $50.00) which will make it easier to create a diversified portfolio.

Prosper has also improved its risk rating system with the introduction of a new proprietary system called Prosper Ratings ranging from AA – HR. Each Rating represents a loss rate range. Prosper Ratings are based on historical loan performance data and are designed to better convey risk. The Prosper Rating letter grade will now be shown in the listing along with an estimated loss rate, and a narrower credit score range. Credit scores shown will be in 20 point ranges (previously 40).


I like the reduced loan rate since I am all about diversity when dealing with this world, and the raising the minimum credit score makes sense…but could limit investing opportunities.

Fine Tuned Bidding for Lenders

Prosper has decided to show/allow lenders to bid on net return rather than bid and then figure out after service fee returns.  Makes sense.

Trade Existing Loans

While I am aware that these seems to be the reason that most P2P lenders went under the wing of the SEC, I am not sure I am into it.  I like because of the lending part, and the holding of notes, not the trading of notes.

First thing I noticed, I have to sign up for a Folio account, which requires me to do all sorts of paper work since I am a FINRA registered agent.  So I am not sure I will even take advantage of this addition!