About Us  > Blog

Author Archive

Prosper Lenders Are Doing A Great Job Pricing!

We are thrilled with the results from Prosper’s first two months of operations since re-launch. Lenders are really capitalizing on Prosper’s best in class rating system and auction pricing model. Continue reading Prosper Lenders Are Doing A Great Job Pricing!

10/07/2009 by in Featured, Lenders, Prosper News

Quality Loan Listings On Prosper.com

One of the early trends we are seeing in the marketplace since re-launch is a dramatic improvement in the quality of listings.

• The average credit score of listings on the site improved from 584 in early October 2008 to 711 in the first two weeks since re-launch. Continue reading Quality Loan Listings On Prosper.com

08/11/2009 by in Featured, Lenders, Prosper News

Why Prosper’s Auction Model Was Worth The Wait

The current financial crisis has put enormous stress on our economy and unfortunately everyone in the consumer lending business, including Prosper lenders, are feeling the effects. Although credit losses are always unwelcome, they are an unavoidable fact of consumer lending and only represent half of the return equation. Continue reading Why Prosper’s Auction Model Was Worth The Wait

07/29/2009 by in Featured, Lenders, Prosper News

Why People with Excellent Credit Borrow on Prosper

Individuals with good credit have a variety of alternatives when they need to borrow money.  Traditional banks have spent untold millions of dollars on brand advertising reinforcing the notion that borrowing from a bank somehow bestows prestige on quality borrowers.  But, does membership really have its privileges?  Smart borrowers know there are two things they should consider when borrowing money, the price and the terms.  Using these two criteria, Prosper’s marketplace is the best place for most borrowers with excellent credit to borrow. 

The better your credit rating the more you benefit from an underwriting process that takes into account your individual characteristics.  Traditional lenders segment borrowers into groups so they can centrally set pricing and terms.  This approach shortchanges the best borrowers in any segment because they are given an offer designed for the average customer.  On Prosper borrower rates are arrived at independently for every borrower.  Quality borrowers are rewarded for their individual credit characteristics and get the best price the market has to offer.  In many (if not most) cases these rates are lower than the rates quality borrowers pay to banks for a similar loan product.

Another way Prosper differs from traditional lenders is loan terms.  Because traditional lenders profit from borrowers paying higher rates, the terms of many traditional lending products are designed to attract borrowers with low rates, and increase rates over time to increase profits.  This is not a practice limited to lower quality borrowers.  Teaser rates, penalty pricing, no grace periods, and prepayment penalties are some of the tools traditional lenders use to increase portfolio profits for all their customers, including the ones with excellent credit.   Prosper has fair terms so borrowers know what they will be paying over the life of the loan.   Prosper loans have fixed rates that never change over the life of the loan.  Often banks label rates as fixed when they don’t float to market rates, but still reserve the right to change the rates based on their discretion at any time.  Prosper loans have a payment grace period before which a late fee is charged, and have no prepayment penalties.  Prosper believes that all borrowers should know for certain what they will be paying to borrow money, and should benefit from a low rate for the life the loan, not just at the beginning.

Maybe membership does have its privileges, if you join the right club.

Kirk Inglis is the CFO of Prosper.

06/13/2008 by in Prosper News

Prosper’s Abundance of Performance Data: An Asset to Borrowers and Lenders

Kirk Inglis, Chief Financial Officer of Prosper.  Quote: “The $100 million milestone is a reminder that Prosper’s rich and unique set of historical performance data has the potential to benefit both lenders and borrowers.  The free flow of information is the cornerstone of any successful marketplace and Prosper is committed to making its marketplace data transparent and accessible.”

Read the rest of this entry on Yahoo! Finance>>

Kirk Inglis is the CFO of Prosper.

12/12/2007 by in Borrowers, Lenders


Connect with us

Get Involved

Learn about personal loans and how to borrow money on Prosper.

Learn how to invest or more about online investing .


Monthly Archive

In the News

Notice: Blogs and other materials posted on or linked from this page that use the name "Prosper" generally use that name to refer to Prosper Marketplace, Inc. if published before January 31, 2013 and to refer to Prosper Funding LLC if published on or after February 1, 2013.