Books

  • Jeff Michael: Repair Your Credit and Knock Out Your Debt

    Jeff Michael: Repair Your Credit and Knock Out Your Debt
    I highly recommend this book because I wrote it.

  • Edie Milligan: Tips from the Top: Targeted Advice from America's Top Money Minds

    Edie Milligan: Tips from the Top: Targeted Advice from America's Top Money Minds
    I have about a dozen entries in this book.


  • DISCLAIMER: The opinions presented on this weblog are solely those of its author, and do not represent the opinions of my employer or clients. I cannot guarantee that the materials presented on this site will be error-free, or that any errors will be corrected. I make no representations as to the accuracy, correctness, or reliability of the information presented here; this site reflects only the personal opinions of its author and is for entertainment purposes only. * Further, this site is not responsible for any comments left in response to weblog posts, and we neither endorse nor guarantee any content contained therein, nor do we endorse any materials, websites, or services linked to in comments left by blog readers. I reserve the right to remove comments at will, but accept no obligation to do so.

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Comments

Just out of curiosity, where does the "1 in 6 should have been late with his/her first payment" come from?

www.CircleLending.com has been offering a similar concept for many years now. Accounts supposedly may be reported to at least one credit bureau in order to help the borrower 'build' credit.

That statistic is culled from discussions in the Prosper.com forums. (Which are very educational if one is interested in the deeper math behind borrowing and lending.)

Getting that kind of number out of the Prosper lending process isn't easy, so the statistic probably isn't as reliable as I make it sound. Here's an example of some of the math I'm talking about: http://prosper.spreebb.com/index.php?showtopic=178

Also, various loans are capped by state interest rate limits -- so a HR borrower who, via Experian historical data, has a 19% default rate, can only list at 6% interest max in Pennsylvania. As a result, there are many loans that will likely never be filled, even w/massive increases in lender volume -- though it certainly is true that more lender volume is needed. Hopefully, as Prosper gets lender licenses in more states, these caps will come off (though a self-imposed 24% cap has just been applied across the board).


Dropping in with the latest. I can't say enough about the results to date. I realize, you can never rule out a default a year or two in, but after several months, a perfect record with a wonderful non-market correlated return.

I posted some independant research on loan default rates vs. loan amounts, which might help some people avoid defaults.

Active loans: 70
Avg. interest rate: 15.20%
No lates, no defaults
Lender since April 2007

Dan at:
www.everydayfinance.blogspot.com

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