Prosper Manual Bid or 3 via Bid Ladder and New Q and A Feature | P2P Lending, Peer to Peer Lending, People to People Lending

I was trying to emulate pensioner’s bidding strategy with my risk tolerance. I came up with a saved search based roughly on my standing order interest rates, extended credit filters, and ordered by time left remaining such that the soonest to end was at the top. My strategy was to identify some candidate loans and if they stayed on my radar bid near the end. Auto funding loans are found by my standing orders so this search focuses on non auto funding.

I found one that I thought was even better than I expected, my risk tolerance and pensioner’s interest rate. At Prosper Days he said he doesn’t look at any loan under 20%. Clean B Credit (0,0,0), 20% Interest Rate, 25K loan. 2nd business (keeping their day job), long credit history, long day job history. Only 2% funded at this point with a little over 2 days to go in the listing. Here is the listing (5 misspelled words):

I excitedly fired off an an email to a trusted resource. Here is the response:

Ok, clearly a brilliant off the cuff analysis. So now to test the new Q&A system in attempt to answer the lingering questions… I fired off two questions and both were answered…

Q: Why 20 inquiries in the last 6 months? (3 misspelled words)

Q: If you have $500 left over, why do you need the loan? (2 misspelled words)

I am a little perturbed that he makes a distinction between personal money and business money. This loan being a personal loan and all. I asked him in a follow up question, but haven’t yet received a response. Q: Follow up question to your personal money response… You are aware this is a personal loan and you are responsible for it even if your business fails?

I am satisfied, but then again I can’t spell without a spellchecker. Are you satisfied?

OK so now I bid in a ladder of $50 at each 19.95%, 18.95%, and 17.95%. If the loan gets fully funded but the rate goes down I will put less and less money into the loan. Smart choice?

If you made it this far you deserve the link to the actual listing: http://www.prosper.com/public/lend/listing.aspx?listingID=99802

Update: According to prosper, I did not win this listing because it was not fully funded or it was withdrawn. It was withdrawn. I don’t know if I would bid again on a 3rd listing. Maybe if the rate was raised.

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