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Prosper Sees Spike in Borrowers Seeking to Knock Out Credit Card Debt

by Prosper on 12/8/09

Today Prosper released our November 2009 performance data. Notable in November, the average credit score of funded borrowers was 718 and 54% of loans were for debt consolidation purposes.

“This is the second month in a row where the majority of borrowers on Prosper are seeking to knock out their credit card debt at better rates and terms,” said Chris Larsen, Chief Executive Officer and Co-founder of Prosper. “Debt consolidation has always been the number one use case on Prosper with business loans being the second most popular. However, debt consolidation borrowers have historically tracked at approximately 45% of peer-to-peer loans. The fact that getting a peer-to-peer personal loan for debt consolidation has spiked for high credit score people who are consolidating credit card payments at a lower rate indicates that consumers are looking to get out from under their increasingly untenable variable credit card rates.”


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4 Responses


CP | December 9th, 2009 at 12:51 pm

very interesting piece of information. what could be the reason behind this spike ?


Prosper Blog | December 18th, 2009 at 3:34 pm

Thank you for your comment. The spike seems to be consumers who are trying to get out from under high credit cards rates, and get a loan to pay off that debt at a better rate and at a set term of 3 years.


Yankeefan | January 13th, 2010 at 1:00 pm

Do you have the updated December analysis yet?


Prosper Blog | January 19th, 2010 at 2:58 pm

The Q4 numbers will be live on the site under “Marketplace Performance” with our next maintenance, within the next couple of days. Thank you for your patience!


posted in Borrowers,Featured,Prosper News 4 comments »

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