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Highest Echelon

A personal finance blog. Paying for my University, life and eventually achieving financial freedom.

One Of My Prosper.com Strategies

Sunday, October 29, 2006

One of my Prosper.com strategies is to bid at current apr, even if I plan on underbidding myself later.

Let's say a borrower requests 24% apr and has a credit rating of B. Taking Prosper's fees into account the actual apr is closer to 22%. The requested apr (24.00%) is great, but it's too much to hope for. When I don't have enough time to fully analyze and email the borrower, I'll bid $50 on the requested apr (24.00%).

Then when I have more time, I'll come back and analyze the posting. I'll look at the group, current delinquencies, past delinquencies, and their story. If I then feel that they are a safe bet I'll underbid myself by as much as 5.00%.

If I'm EXTREMELY lucky (and this doesn't happen much) I'd get approved for the 24% apr and then my lower apr as well.
posted by johnwilkx, 11:34 AM


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