#1Adi Ron 09.26.07 at 8:07 am
So color me stupid, but I can’t guess what jumped at you? What was it that we the lenders should stay away from?
#2Stephen Wilson on 09.26.07 at 8:27 am
Yes, please throw us a bone here. What was the extended credit information that the lates had in common?
#3Kevinon 09.26.07 at 8:31 am
I don’t belive you are stupid. You read this blog afterall.
The point of the post was to be self reflective in your lending nature.
While I will reveal the criteria that has been the majority of my lates eventually, you should realize that I have 15 standing orders laddered on and covering many different profitable slices of Prosper loans. The fact 1 particular critera stuck out to me might be a product of some of my other criteria choices. For example, extremely high rates or a lack of DTI requirements or …
I encourage you to use the Prosper lending performance tool and understand the implications of when certain data was added to Prosper.
#4Adi Ron 09.26.07 at 10:00 am
Actually, I noticed the requirement some time ago on the prosper performance calculator and added it to my search criteria. I don’t believe in standing orders, since I seem the most unusual things and no matter how strict my criteria is (with Safest setting right now returing 3-5 listings on average), I still would not blindly invest in these listings without reviewing wording, photos and some other subtle signs which I hope will help weed out the “bad seed”. Only time will tell, of course.
Unfortunately, I did at least half of my original loans without looking at that part of the criteria, so it will be nice to reflect back and compare the two groups in a year or two.
#5Kevinon 09.26.07 at 10:09 am
I think my standing order based impartially on credit judgment is better than my own personal review. While my search criteria is equally tight, I find I am a sucker for a good sob story and often get in at a lower rate or for more money that I want to.
Plus manually looking at listing would take all day. I prefer to Prosper Automatically: http://www.rateladder.com/2007/04/25/automatic-prosper/
#6pjz on 09.27.07 at 5:45 pm
What are you talking about “manually looking at listing would take all day”? Just do an advanced search with your tight criteria and then do a sanity check on the returned listings before you bid. Right now this procedure takes me no time at all since my tight search criteria currently finds zero matching listings.
Looking forward to the commonality you found.
#7pjz on 09.27.07 at 5:54 pm
I do see a commonality among your late loans but probably not the one you are thinking about. Most of the late loans have a very high interest rate with respect to its credit grade.
#8pjz on 09.27.07 at 6:43 pm
I think I got it. It is bad when your # of current credit lines are less than the # of open credit lines. However, I did not have have time to find one of those among your lates.