Member Benefits

[taxesformuchlessinc]

I am a member of Socorro Capital Partners group on Prosper.  I used to be a member Super Clean group on Prosper.

I have yet to figure out the purpose of these groups.  It makes me feel like a homeless citizen of Prosper if I'm not part of a group.  I found a group to join as fast as I could.

It probably doesn't matter now but if I was to make another listing on Prosper a year from now, how would it benefit me to be a member of Socorro Capital Partners group?

taxesformuchlessinc

[BAEVentures]

Well, I am not a member nor leader of SCP, but as a supporter, I can give you a brief idea of the purpose of SCP. The below link is a link to the SCP group page on Prosper, most of it is explained there.

http://www.prosper.com/groups/group_home.aspx?group_short_name=SCP

The thing to note most of all as a member of SCP is and it's "benefit" to you is:

"We would like to extend a welcome to borrowers including higher risk borrowers who deserve a 2nd Chance when the time is right. Not looking to bail anyone out. Basically, we would endorse higher risk candidates looking to improve their credit rating because they can put their financial woes behind them."

Given proper verification and documentation by the group and it's leaders, they may opt to endorse your listing.

I personally, am a group leader as well. While my group doesn't have near the supporting lender base as SCP, my group is strictly for High Risk borrowers that are consolidating their debts. I take the time to review their financials, monthly budget, W2, pay-stubs, and alternative credit report. I perform a debt disclosure on every borrower and then decide whether or not I feel they are capable of making their payments. I have helped 3 borrowers in the last 2 months, that had tried numerous times to get funded, all of their attempts failed. Upon joining my group, and with my endorsement on their listing, they were all funded on their first listing attempt with me, and I hope, I have choosen wisely.

The purpose of a group in general, depends on the group. Many are regional groups, or company groups, IE Microsoft Employees or Texas Borrowers. Other groups look to evaluate and endorse individual borrowers and generate a following based on their group rating. Another example is LendersClub. LendersClub is a group for lenders only (you must have $500 invested in Prosper, if you wish to take out a loan as a member of LendersClub). LendersClub has a very high group rating as all of it's 15 loans made are current, none have defaulted and therefore it is rated as 5 Stars by Prosper and attracts other groups and other lenders to bid on group loans.

Hope that answers your question.

BAEVentures

[sosocratic]

Basically, if all you do is join the discussion here then the benefit is strictly educational - which is not bad. People here can give you constructive criticism of your listing and hopefully improve it. Some who get to know you a bit may be more inclined to bid on your loan. At the very least they are more likely to be aware of it. The biggest pay-off is if you can get the group leader to endorse you and recommend you to the group, usually after an additional vetting process. That can bring in lots of bids with a better chance of getting funded at a lower rate. Many lenders do not like to put in bids until they know a loan is going to get funded because they do not like to tie up their funds bidding on listings that end up never turning into loans. As you discovered in your listing, getting a lot of people on board early can make a huge difference in how it ends up.

[taxesformuchlessinc]

I did all the right things but it was dumb luck. 

Next time I can use smart luck. 

taxesformuchlessinc

[sosocratic]

Starting at a high rate in order to get people to jump in and get funded early and then bid the rate down is an old trick. The way it can back-fire is if you do not get bid down and try to decline the loan. If you then list back again people will be hostile over the fact that you turned that last one away and go back to not bidding.

[BAEVentures]

http://www.prosper.com/invest/listing.aspx?listingID=420423

My example. Starting Lender yield of 34.00% Finalized yield of 6.99%.

BAEVentures

[taxesformuchlessinc]

Given proper verification and documentation by the group and it's leaders, they may opt to endorse your listing.

I take the time to review their financials, monthly budget, W2, pay-stubs, and alternative credit report.

Other groups look to evaluate and endorse individual borrowers and generate a following based on their group rating.

Is this practice allowed by Prosper?  The reason I ask.  Couldn't you identify a golden borrow and bypass Prosper?  Not good for Prosper.    Couldn't a group leader steal a person's identity  using this method?  Again not good for Prosper.

taxesformuchlessinc

[BAEVentures]

I could very well find a golden borrower and finance them myself away from Prosper. There is no checks and balances system to prevent me from doing this, and I'm not even sure it's in the fine print that I couldn't do it.

In terms of identity theft, I request that all of my borrowers mark out, cover up, or remove all SSN's and Tax ID numbers from the documentation they send to me. I'm sure most people wouldn't feel comfortable submitting their documents to a total stranger otherwise.

I find this a necessary process, as unlike LendingClub, Prosper does not perform any pre-listing verification aside from the basics (SSN/name/address/etc). LendingClub allows borrowers to verify their income with LendingClub prior or during their listing and lendingclub them notates that on the listing. Also, lendingclub provides slightly different credit information, namely how many months it has been since the borrowers last delinquency. I don't think Prosper has the man power, nor revenue generation to cover the man power to do this unlike LendingClub.

Also, it is good for Prosper in the sense that it is providing an opportunity for borrowers who can not achieve funding on their own, to become fully funded and approved for a loan. This is how Prosper generates revenue. I don't know many companies that try to prevent their clients and investors from assisting in revenue generation without them having to lift a finger.

BAEVentures

[taxesformuchlessinc]

Check this group out.  They have a horrible success rate.  All of these borrowers started out with no late payments on their credit report.  Almost 75% of them have defaulted on their prosper loan.  I have to be honest.  It's kind of funny.

http://www.prosper.com/groups/group_home.aspx?group_short_name=supercleancredit&display_mode=5

I used to be a member of this group.  Super Clean Credit is a badge of honor.  Being a member of this group might tarnish one's reputation.

taxesformuchlessinc

[go4reward]

Yes, stick with the groups that make payments on time.