Tuesday, April 22, 2014

Prosper Account (Update) - April 2014

Given that we feel the market may be a bit overvalued at the moment, our family's primary focus right now is trying to grow our peer-to-peer lending accounts.  Our family currently maintain accounts with both Prosper.com and LendingClub.com. We are planning to report these two income streams separately and will provide monthly updates on both.


March was a very busy month for us on Prosper as we purchased an additional $1,470 worth of notes this month. At the end of March, our Prosper account balance was at $7,288.20. We received $396.20 in payments from our active notes in March; of which, we received, $45.22 in interest.  The principal balance of our active notes was $6,682.99 and a remaining cash balance of $605.31
In an effort to grow our Prosper account, we are currently re-investing all of the payments that we receive from our notes. And when the cash balance is low, we are continuing to add more funds to the account so that we may constantly purchase new notes.
Notes Criteria:
Our family has been investing in peer-to-peer lending notes for approximately 3 years now. And because of past defaults, we have now refined our search criteria. As a result, we now take a slightly more conservative approach with the notes we invest in. Currently, we only invest in notes that fit the following initial criteria:
  • Under $8,000;
  • Credit score of 700 or more; and
  • Monthly payment will be less than $275.
From those we evaluate:
  • The borrower's income;
  • Their occupation; and
  • Length of employment. 
NOTE: Certain occupations, known to be more secured, are more desirable.
We then look at:
  • Their credit history;
  • Revolving balance; and
  • Debt to income level, etc.
We do not invest in any notes where borrow is currently delinquent, of if they have had  a public record within the last 12 months.

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