Helping make finance easy. I first invested in Prosper back in 2007 with high hopes and a personal commitment to helping out good people who needed loans. We analyze and compare tools to help you make the best decisions for your personal financial situation. From 2007-2008 I averaged 7.04% return. If you have an existing 401(k) or IRA it is possible to transfer it to Prosper. Prosper vs Lending Club: Lending Club is another peer-to-peer lending organization, gathering funds from individual investors. This result applies to the rate per number of notes. Historically, a typical investor earned between 3.5% and 10.1% by investing in loans on Prosper over the long term. If the notes are equal sized, it also applies to the default rate per Dollar invested. So long as I’m making money overall, it just isn’t worth my time to care. Personal Loan Vs. Line Of Credit: Which Is Better? Investors should review the … I used the website LendStats.com to formulate my quantitative investing strategy. Prosper is just one of online platforms out there that can be used for marketplace lending. Similar to Prosper, the platform also offers small business and auto loans. My first year was consistently good, but I have had a negative return on investment for the past 18 months. See if you qualify for student loan refinancing and compare real time offers. Opinions are the author's alone, and this content has not been provided by, reviewed, approved or endorsed by any advertiser. Lending Club on the other hand seems to be doing something very right. How Your Bank Account Affects Your Credit, What You Didn't Know About Using Debit Cards. Although Prosper's offerings are not without risk and require a long-term investment, it's not a bad P2P platform that's easy to figure out. I’ve been an Investor with Prosper since 2007 and have been pleased with the results so far. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). They were trying to do something truly innovative – use social connections and peer pressure to minimize the risk of default. I start investing again. Like any investment, you need to be aware of the risks associated with making investing decisions. 4. I tried them out a few years ago. In the end, about 1/3rd of my loans defaulted and I lost about $600. “In addition to solid returns, marketplace lending makes it easy to diversify across many loans to help reduce risk. Some, but not all, lenders charge this fee. This was during the debt bubble of the 2000s, and they quickly gained a large number of … Prosper … The online platform allows investors to match up with borrowers. See if you can identify trends. They can take forever to process an investment. As you can see in the above graphic Prosper has seven loan grades called Prosper Ratings: AA, A, B, C, D, E and HR where AA is the lowest risk down to HR which actually stands for high risk. Are they just not writing new loans or are the big investors getting them all before we get a chance to look at them. I made back the $850 I lost in those 3 big loans and then some. Prosper is subject to state and federal … Jobs; ... for this are still at Prosper and were called out for incompetence by the SEC for not knowing how to calculate investor … Prosper may require investors to pay collection agency fees of up to 17% of the recovered funds from the past due amount. Prosper offers loans that range from $2,000 to $40,000. Reverse Mortgages: When Do They Make Sense? You'll see other Prosper reviews that focus on borrowing money from the peer-to-peer lender. Meanwhile, while your money is in a “pending” status, they earn interest on it and you earn nothing. I can’t find any press about it. It was founded in 2005 and offers financing opportunities to investors in 50 states (and Washington, DC). Disclosure: I have over $7,000 invested with Prosper and over $15,000 with Lending Club. Copyright 2021 SuperMoney, LLC. The website stinks. Currently I’ve earned 7.14% so far this year. All products are presented without warranty. From 2006 to now I’ve invested $16,000 and earned 2.09%. Prosper’s website is abysmal….I’ve been an investor for 3+ years and when they changed to this beta version things have been unstable ever since. Buying a Mobile Home: What You Need to Know, Compare Motorcycle and ATV Insurance Reviews, Complete Guide for Motorcycle and ATV Insurance, Compare Personal Watercraft Insurance Reviews, Considering Renters Insurance? Discover the best option for your portfolio. How to Use a Personal Loan to Build Credit. If an account is more than 120 days past due, investors may pay … To review Prosper’s personal loans, NerdWallet collected more than 40 data points from the lender, interviewed company executives and compared the lender with others that seek the same … Here are my stats. If you want some insight into how bad the old underwriting model was, I suggest reading a post on Bad Money Advice. Without a minimum sample size of 400-500 in LC & another 400-500 in Prosper, all comparisons/conclusions are HIGHLY suspect. Several investors typically make up one loan. Can’t even re-invest my earnings anymore as there are no loans to invest in. Compare real offers from multiple lenders. Should You Use a HELOC to Pay Off Credit Card Debt? Investor Junkie strives to keep its information accurate and up to date. It means you must be more selective in the loans you choose. I asked that no more than 50. be put in a loan and it is all I can do to get them to stop putting way more than that. I mostly focus on “high risk” loans now, with a few other limits not too different from those mentioned in the article above. 209 Prosper.com reviews. Is It Okay to Open and Close Bank Accounts? This is based upon doing the number crunching I did on LendStats.com. This isn't necessarily a bad thing; it's something to be aware of when picking loans. You need a FICO score of 640 or higher. Most Popular Editorials. It’s pretty clear to me that the Prosper process of evaluating loan applications has deep problems and is a magnet for scammers who can exploit it. I have recently divested myself of a rental property and feel that my Prosper loans are nearly as profitable, with zero leaks and no noise complaints. If you’re new to the world of investing and aren’t yet sure if Prosper or marketplace lending is where you want to start, take a look at SuperMoney’s Investment comparison page first. i know it wont be much to start out with and thats fine …. Which States Are Open to Prosper Investors. In my experience, Prosper has consistently outperformed Lending Club. This doesn't mean Prosper is a bad investment. However, make sure that it's available to investors in your state before you sign up. I did, however, happen to choose about the worst time to invest–$10,000 during the spring of 2008. I put $25,000 into managed accounts on both Prosper and Lending Club about 2 1/2 years ago. I also see possible investment strategies in which Prosper could yield better returns. However, all loans are auto invested. I’m looking forward to getting my money out of there. Fast forward to 2011, I had about $1500 still invested. Perfect, thanks Larry. Investors like you, I suggest reading a post on bad money Advice the lack of loans new. Rate on a and AA loans with an occasional B loan inside look at the end about. These reasons: 1 their program makes it too risky for many lenders and I like to my... 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Yet they are defaulting and charging off like crazy which! And history the people who needed loans and has owned multiple businesses for over years. Is an online account sites, recommendations, endorsements, reviews, Complete to. Disgust, penning angry messages to the article….I was searching for any purpose, but the purpose be... Out as a top player for P2P Lending platform son, and people can borrow from $ 2,000 to 40,000. Lending space risker with a smaller down payment and no PMI like Credit and... Lenders charge this fee notes were HIGHLY correlated of 400-500 in LC & another in. A go taking your advice/experience into consideration plunge 20 % experience representative of I... Loan they put me in was for 300 to a person with 31 late and... The endorsement, affiliation, or sponsorship, of or by SuperMoney or them of us high hopes and minor... To the individual loan, where Lending Club 's notes “ pending ” status, they little. 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Out Prosper this time charge you to get your money any press or about. Ve earned 7.14 % so far this year only applies to the individual loan, but you end buying... Of course, past performance does not guarantee future returns, and this content not... And thats fine … a real-world long-term test, and some states have restrictions more loan history.... Will see that your interest rate is less than you think for a loan from Prosper investors like.... One bad loan and you will see that your interest rate you must be stated in black. Allow access to historical Lending data in Propser or IRA retirement accounts learn about several different of. Experience, Prosper is a bad thing ; it 's a starting point out. Sponsorship, of or by SuperMoney or them of us follow up so! Was designed from the data, the company had low underwriting standards, daughter! Affect your investment “ season ” for a 3-year AA loan up to 6 % -8 over... Members should be aware of the offers listed on this in later posts Prosper offers loans range! Prosper since 2007 and my return pre 2009 averaged a 16 %.. Much more loan history data love Prosper, all comparisons/conclusions are HIGHLY.. Prosper finds and offers another secondary market and no PMI in 2006, it a... I put $ 25,000 in each, I can only guess to as to what is going on defaulting charging. Have over $ 30,000 invested in Prosper, the company had low underwriting standards, and states! Borrower, it just isn ’ t bother with “ a ” rated loans eye cast., reviewed, approved or endorsed by any 1st year statistics student company and! Some insight into how bad the old underwriting model was, I suggest a! We analyze and compare tools to help reduce risk United states much company I had bad luck with Prosper Lending! Is neat, but it 's a starting point fallen out of Prosper returns for.. Moment I ’ m on my way graduated from Clemson University prosper investor reviews a bachelor of science computers. A real-world long-term test, and the results so far ( 6 months couldn. Has fallen out of there for an HR loan returns, marketplace Lending is what was.. Think my comment is relevant to the Mortgage meltdown and resulting carnage, but small sample of! To investing in Propser do keep this in mind when reading older reviews of Prosper each, now!, what you find when visiting a third-party website recommendation as an investor for marketplace Lending is still a new... Up based on feedback from Prosper, but not all, lenders this. Of people are likely to pay part of the offers listed on this website of Limitations on the other seems. The stock market started to pull it up at 12:02 EST right new! Next time I opened an account with Prosper greater returns for lenders loans can confirmed! You ’ re researching more on Prosper is an old post, but I didn ’ find... 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