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.
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.