Title: LC and Prosper Fees Comparison (and kudos to LC)
Post by: Rob L on December 08, 2017, 11:00:00 PM
Post by: Rob L on December 08, 2017, 11:00:00 PM
When I submitted my most recent "Prosper Worst Month Yet" post I was frankly overwhelmed regarding the Prosper's fees.
In the spirit of full disclosure Bryce Mason pointed this disparity out to me in a private communication years ago.
For those who missed it this is my record to date:
Prosper Gross profits: $6,841.47
Prosper fees: $1,349.43
Prosper Net Profits: $5,492.44
Prosper fees as a percent of gross profits: 19.7%!!
I must note here that my Prosper notes were very conservative A & B notes.
Fees are higher for low interest rate notes. You are being charged for getting your principal back and not much interest.
At the time of the Prosper post I said I'd have to compare it with LC if I were not too lazy. I was not (weekend time):
My hat is off to LC. Realizing how bad it was for a lender to have a loan paid back in the first year and be charged for the privilege of receiving their principal back they did the right thing and made a change. Fees for loans paid off in the first 12 months are charged at the nominal P+I for all payments. That kind of move should make me a LC fanboy!
In the spirit of full disclosure Bryce Mason pointed this disparity out to me in a private communication years ago.
For those who missed it this is my record to date:
Prosper Gross profits: $6,841.47
Prosper fees: $1,349.43
Prosper Net Profits: $5,492.44
Prosper fees as a percent of gross profits: 19.7%!!
I must note here that my Prosper notes were very conservative A & B notes.
Fees are higher for low interest rate notes. You are being charged for getting your principal back and not much interest.
At the time of the Prosper post I said I'd have to compare it with LC if I were not too lazy. I was not (weekend time):
My hat is off to LC. Realizing how bad it was for a lender to have a loan paid back in the first year and be charged for the privilege of receiving their principal back they did the right thing and made a change. Fees for loans paid off in the first 12 months are charged at the nominal P+I for all payments. That kind of move should make me a LC fanboy!
Title: LC and Prosper Fees Comparison (and kudos to LC)
Post by: jd on December 10, 2017, 11:00:00 PM
Post by: jd on December 10, 2017, 11:00:00 PM
I'm not in Prosper so I never looked all that closely at the fees but that is crazy. Thanks for shinning some light on good news.