Beyond the Credit Grade

(part 17 of my Prosper Lending Presentation)

As absolutely nifty as Prosper’s new Bidding Guidance and Portfolio Plans are, they just do not have the capability to capture the amount of detail that the manual bidder can.

Let’s consider the Borrower’s description. The way a borrower presents themselves can offer insight into their financial situation. A lot of borrowers these days include a budget and show much they’re paying for their mortgage or rent, car, and credit card bills.

Do the numbers in the budget jive with how much they make per month? (are they claiming a $100 food amount per month? (ack))

Does their budget jive with the DTI figure provided by Prosper?

There really is good stuff to be found in borrower descriptions. Unfortunately for the borrower, more often than not there are little tidbits offered in the description that might convince you NOT to bid rather than bid, but too bad for them, and too good for your Prosper balance.

On the other hand, a properly written Prosper listing will show the sincerity and determination that the borrower has toward repaying their Prosper loan. You just need to learn what to look for and what to avoid. Things that I unfortunately will not provide here.


Beyond the listing description, even, there are other things the manual Prosper bidder can take advantage of. Prior listings are a huge resource. If the listing has changes substantially, watch out! Other things, like Prosper user ID’s and pictures can also offer some clues to the borrowers sincerity or desperation.

The Credit Grade and Bidding Guidance offered by Prosper are a good start. But if you’re looking to maximize your return on Prosper, you’ve just got to dig a little deeper…