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Post by: TheLittleDuke on October 23, 2016, 11:00:00 PM
Post by: TheLittleDuke on October 23, 2016, 11:00:00 PM
Background: I am a lender on Prosper. I have nearly zero debt, my house is almost paid off, and I pay off my credit cards in full every month. My FICO scores are over 800 (including an 850 from Equifax of all places). I also have a Wells Fargo personal line of credit (PLOC) up to 35K at 7% interest.
Out of curiosity over the weekend, I decided to see what Prosper would offer me for a rate on a small 10K loan....which is less than the maximum I ever had invested with them...
I was STUNNED when Prosper offered me 9.78% as their best rate
WTF!?!
How are they offering larger loans to others in the 4-6% range? It just doesn't pass the sniff test!
I was so incredibly insulted by it (combined with the fact that they are now spamming me to complete the loan) -- that I've decided to idle down any further investment in their platform.
I also asked them to remove the "score check" which now shows up as an unfinished loan in the user interface but they are refusing to.
I was willing to stick with them given the lack of liquidity since they are ending their Folio note trading relationship, but FFS, this is the last straw.
Out of curiosity over the weekend, I decided to see what Prosper would offer me for a rate on a small 10K loan....which is less than the maximum I ever had invested with them...
I was STUNNED when Prosper offered me 9.78% as their best rate
WTF!?!
How are they offering larger loans to others in the 4-6% range? It just doesn't pass the sniff test!
I was so incredibly insulted by it (combined with the fact that they are now spamming me to complete the loan) -- that I've decided to idle down any further investment in their platform.
I also asked them to remove the "score check" which now shows up as an unfinished loan in the user interface but they are refusing to.
I was willing to stick with them given the lack of liquidity since they are ending their Folio note trading relationship, but FFS, this is the last straw.
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Post by: Fred on October 24, 2016, 11:00:00 PM
Post by: Fred on October 24, 2016, 11:00:00 PM
Perhaps there is a credit-arbitrage opportunity here for you?
Take the 7% 35K from Wells Fargo, and lend it at 9.78% to people like you (FICO > 800) on Prosper?
Take the 7% 35K from Wells Fargo, and lend it at 9.78% to people like you (FICO > 800) on Prosper?
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Post by: AnilG on October 24, 2016, 11:00:00 PM
Post by: AnilG on October 24, 2016, 11:00:00 PM
Have you tried to get $10K installment credit, for example signature loan, from Wells Fargo? Prosper is offering installment loan while PLOC is a revolver, not an equitable comparison. Also, small loan amount tend to carry higher interest rate.
from: TheLittleDuke on October 24, 2016, 08:30:41 PM
from: TheLittleDuke on October 24, 2016, 08:30:41 PM
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Post by: TravelingPennies on October 24, 2016, 11:00:00 PM
Post by: TravelingPennies on October 24, 2016, 11:00:00 PM
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Post by: fliphusker on October 24, 2016, 11:00:00 PM
Post by: fliphusker on October 24, 2016, 11:00:00 PM
It is odd what companies offer for their rates. Just remember that FICO is not the only thing that a lender will look at. From our notes we all know that while FICO is important it is not the only important thing.
As Fred points out of taking the 7% 35k and invest it, if you are going to go all crazy with something like that I would do a HELOC at half that rate. Something I personally think is crazy I am just too conservative to do that.
As Fred points out of taking the 7% 35k and invest it, if you are going to go all crazy with something like that I would do a HELOC at half that rate. Something I personally think is crazy I am just too conservative to do that.
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Post by: Micarba on July 21, 2019, 11:00:00 PM
Post by: Micarba on July 21, 2019, 11:00:00 PM
I thought that there was a lot of madness. Which part do he use?