Prosper Peer-to-Peer Lending Getting With the Program

I haven't made a loan at Prosper since Oct 2008. Since 2006, I have entered into nearly $5000 in loans. Many of them risky. My net gain/loss has been ($38.35) at Prosper. I still have 32 active loans at Prosper and I suspect that before it's all over i'll eeck out a few dollars in gains.

I have been reinvesting my blog's earnings at Lending Club in $25 loans and have had nice returns (~9%). Initially, I hated the Lending Club interface (as compared with Prosper.com). However, I have grown use to Lending Club. I particularly like the fact that you can bid a minimum of $25 on loans. The time spent searching for loans hardly justifies minimum $25 bids unless you approach it from a hobby perspective.

I had almost written off Prosper until I got the below email announcing they have switched to $25 minimum initial investments and have a new risk rating system. Now, I will at least reconsider reinvesting my existing Prosper loan distributions (in safer loans this time).

All of us at Prosper would like to thank you for investing through our marketplace. We are eager to have you come back to Prosper to invest in your fellow Americans once more.

As you may have heard, we're now offering several additions to our marketplace, like an Improved Risk Rating System. We've also lowered our minimum bid to $25, so you can better diversify by bidding on more loans.

Since our relaunch we have seen a dramatic improvement in the quality of listings. In fact the average credit score of listings in the marketplace has improved to 700 in the first month since re-launch. And 16% of the listings have a Prosper Rating of AA to B.

These tough economic times require a new approach to investing and Prosper provides you with the transparency and best-in-class rating system you deserve.

Please consider coming back to lend on Prosper – you will have the satisfaction of knowing you are helping your fellow Americans get the loan they need.

Regards,
Prosper