I have 7 total loans with Prosper. But one has defaulted. There’s another one going bad right now. It’s 15 days late. I sent a polite message asking if the loan payment was going to be paid soon. But I got no reply. I am pretty sure this one is going to go under too.
I haven’t figured out exactly how much I have lost, but the first loan that defaulted is in collections and strangely, it’s being paid again. I haven’t get figured out if I’m still close to breaking even or not. I was breaking even on the first defaulted loan as long as 6 remaining loans were being paid. But now it’s gotten complicated and we’ll see in 3 months whether or it gets any better or worse.
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{ 5 comments… read them below or add one }
I’m down 1 outta 4 right now.
I’m curious; any outliers in the two that are bad? That is, high number of open credit accounts, bad credit rating, etc?
The one I have that went bad was AA credit, but had an unusually large (20ish) number of open credit accounts. I told Prosper to auto-pick my investment, and regretting that at the moment.
Out of 31 loans, I’ve had 4 default and another 2 that look like they are about to (1 month late). I’ve only been in for a year, so I have two years to go and I’m hoping for the best, but I have realistic expectations in this economy.
I only invested in 3 loans to try it out before they went quiet. So far, so good. One is fully paid, and the other ones are paying on time. One is 10 months old, and the other one is 6 months old.
One has to expect certain level of defaults though. Looking at Prosper’s performance page, they have 11.22% charged off, which is really high compared to banks and credit cards. Lending Club has 4.14% defaults during the same period. This is one of the reasons I moved my investment experiment to the LC (other than the fact that Prosper is closed)
I have 3 loans at Prosper and 4 at Lending Club. I’m one of the lucky ones in that I’ve never had a single late payment come in from any of them.
I might start up a few more with Lending Club. We’ll see. That one always seemed less sketchy to me.
Grasshopper,You must be very careful when choosing a loan on Prosper. Read my entry on this if you wish on networthiq.com under redtoblack.