Just Bid On My First Two Prosper Loans (Yesterday and Today)

I finished bidding one half of my monthly allotment for Prosper loans. I deviated a little bit from my entering strategy in that I chose to bid on one loan where the credit rating was "E" signifying that on average, people with this credit rating default 10.4% of the time on their loans. The loan would pay a 21.5% interest rate and appeared to be an acceptable risk vs. reward spread.

The other loan applicant had an "A" credit rating signifying that they had an approximate likelihood of default of less than 1%. The interest rate on the loan was 10%.

Again, I deviated a bit from my strategy in that I bid each loan in equal amounts of $50. I chose not to do risk-weighted bidding amounts because I was only starting with $100 and wanted to dip my feet in the lending waters as early as possible.

In the end, my gut feeling on the loans are as follows:

Loan #6654 (A credit rating): Loan will probably run for nearly full 3 year duration (gut feeling)
Listing #7958 (E credit rating): I personally feel that the borrower will pay of this loan within the next 11 months or sooner.

You may not be able to easily see one of these two loans without signing in. You can bypass signing up for an account by clicking the lend tab and navigating to find "#7958" or #6654."

The blended (average) interest rate will be approximately 15.75% between the two loans.

You can follow my bids under my Prosper handle "WellVersed."