This isn’t about avoiding defaults – this is about guiding borrowers to a loan amount which will actually generate enough bids to get funded. Even prime borrowers like yourself, RateLadder, have trouble generating $25k in bids. So we try to gently guide you lower, even if only marginally lower to $24k. – Andrew from Prosper
Is it in fact an alert on a fixed amount (always and only $25,000 to $24,000) or is it dynamic in nature, where it takes into account people’s credit grade and the average loan size that people with that grade can sucessfully get ?
Glad to see Andrew participating. It’s always nice to get things from the source.
Three quick comments…
“…this is about guiding borrowers to a loan amount which will actually generate enough bids to get funded.
… So we try to gently guide you lower, even if only marginally lower to $24k.,”
This explanation would make more sense to me if the guidance to go lower didn’t occur at ONLY the maximum loan amount ($25K).
Folks who list for less than the max are far less likely to have immediate plans to borrower more. Folks who list for the max are more likely to want to borrower more – and they may well borrow the difference somwhere else. This additional risk isn’t reduced, imho, if they borrow $24K instead of $25K.
“$24,000 the new $25,000.”
Hmm, now where have I heard that catch-phrase before?
I guess everyone sees risk levels differently, but I’m with Living Off Dividends. There’s no way I’d lend to someone asking for even $20k, let alone $24k. There just aren’t a whole lot of good reasons why a person is in need of that much cash, and can’t get it at a bank.