Income
Understanding Prosper Borrower’s Credit Grade
As stated on the Prosper’s website,
A Prosper credit grade is a letter grade that Prosper assigns you based on your credit score, for use solely in the Prosper marketplace. Prosper obtains your Experian Scorex PLUSSM credit score from your credit report, and assigns one of seven credit grades.
Understanding where Prosper is getting your credit score […]
Prosper Progress Report - May 2008
Prosper, a popular peer to peer lending program where prospective borrowers can request a loan up to $25,000 at an interest rate to be determine through a bid-down system by individual lenders.
The results can vary from borrower to borrower. Borrowers with the same credit “grades” will often find their interest rates varies wildly from each other. There are several reasons such as the type of loans they are requesting for such as whether it for personal or business use. Another factor is the borrower’s home state interest cap rates for loans.
Since Prosper loans are unsecured loans, if the borrower defaults on the loan, you may or may not get your money back if any at all. You are really making a bet the borrower will pay back the loan in full with interest.
By having a tracking system, you can create a report that will help you better understand past performance of the borrowers who share similar credit grades but different interest rates.
While past performance are not an indicator of future performance, it can certainly help to know where your bets went wrong and which bets helped you succeed in achieving your lending portfolio goals.
Enginero Questions Prosper
A personal finance blogger who happens to be an engineer is posing a good question about Prosper and whether it is worth trying out. I encourage you to visit his article,
Is Prosper for me? Intrigue can be costly
Building My Prosper Plan
After having been a Prosper lender for a little over a year now, I have been examining my approach to investing in this area. Since lending is a form of investment, specifically related to my own personal finances, it is important to question my prosper strategy to ensure I am on track with my goals.
Prosper Progress Report - April 2008
Prosper, a popular peer to peer lending program where prospective borrowers can request a loan up to $25,000 at an interest rate to be determine through a bid-down system by individual lenders.
The results can vary from borrower to borrower. Borrowers with the same credit “grades” will often find their interest rates varies wildly from each other. There are several reasons such as the type of loans they are requesting for such as whether it for personal or business use. Another factor is the borrower’s home state interest cap rates for loans.
Since Prosper loans are unsecured loans, if the borrower defaults on the loan, you may or may not get your money back if any at all. You are really making a bet the borrower will pay back the loan in full with interest.
By having a tracking system, you can create a report that will help you better understand past performance of the borrowers who share similar credit grades but different interest rates.
While past performance are not an indicator of future performance, it can certainly help to know where your bets went wrong and which bets helped you succeed in achieving your lending portfolio goals.
The Income Triangle
To tell you the truth, I got fed up with the “creative” licenses that different people are taking to promote the concept of passive income.
I wanted a simple explanation of what the difference between the types of incomes I am earning now and planning on to recieve in the future when I diversify my income streams.
Define Your Retirement
I want you to focus on one word here.
Retirement
Think about it for one minute before reading on.
Retirement means different things to different people. To some, it means the day you entirely stop working. To some, it means you no longer work as an employee. To some, it means you are financially free.
The defination of the word, […]
A New Look on Retirement
I was just talking to a co-worker about how I turned 33 this month when it hit me. How often do you hear people say “Another year older” when they talk about their birthday?
Today, I realized the opposite of that saying.
Your birthday is another year closer to retirement.
Adding another year to your life is not […]
Rule of 72
Knowledge gives you choices.
By knowing what the Rule of 72 is about, you are giving yourself the knowledge to make decisions regarding your personal finances. Knowing whether you want to see your money double in 3 years or 18 years will help you figure out what kind of annual return you will need.
Keeping a Rule of 72 chart handy in your investment folder will help you know what to expect when you are researching investment opportunities. There are many kinds of opportunities ranging from Certificate of Deposits to commodities. An annual interest rate of 4 percent or 28 percent will be an important factor in determining your investment horizon should you desire to see your original investment returned to you sooner than later.