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Prosper Ratings: A Refresher

by Prosper on 12/18/09

Prosper Ratings

Every borrower listing on Prosper is assigned a Prosper Rating – a proprietary rating developed by Prosper that allows us to maintain consistency when assigning a rating to the listing.

Prosper Ratings allow you to easily analyze a listing’s level of risk because the rating represents an estimated average annualized loss rate range.

The loss rate is based on the historical performance of borrowers on Prosper loans with similar characteristics and is determined by two scores: (1) the credit score, obtained from a credit reporting agency, and (2) an in-house custom score, the Prosper Score, built on the Prosper population. The use of these two scores will determine an estimated loss rate for each listing (based on the historical performance of previous Prosper loans), which then determines the Prosper Rating.

Learn More about Prosper Ratings


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2 Responses


Paul Johnson | December 19th, 2009 at 5:58 am

I want to give my son a loan to help with his credit rating. I would like to use prosper so that his payments can be tracked and he can improve his credit rating.

Prosper will not let him float a loan (for me to pick up) because his credit rating is to bad.

Shouldn’t this loan decision be mine alone. Prosper could give all sorts of warnings, but I want to do this and I can’t


Ralph Hall | May 15th, 2010 at 10:39 pm

I have a current listing on Prosper to try to get funding for roof repair. I checked my score before I listed and it was 707 on Transunion, yet Prosper listed me as HR. We had a bankruptcy in 2000 and lost everything after my wife had a massive heart attack at 37 yrs. old and was out of work for 4 months. At the time, I had made a job change and took a drastic pay cut, so needless to say we were strapped before she was unable to work. We have clawed our way back in the past ten years to achieve a good credit score and purchased a home 2 years ago. We pay our bills and don’t appreciate being clumped in a category with people who haven’t worked as hard as we have to get back on our feet!


posted in Featured,Lenders,Prosper News 2 comments »

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