It seems my initial expectations about prosper were somewhat off the mark. When I first got on the service, I didn’t entirely understand prospers loan bidding process and assumed that I every loan I bit on would be accepted.
However, since my last posting, I’ve lost out on four of the eight loans I’ve bid. Rats. I’ve investigated the process and it seems that successful bids are 1) made early and 2) lower than borrowers asking rate. My plan at this point is to lower my bid rate by a quarter of a percentage point. If it doesn’t work, I’ll make a note of it and post again.
In terms of a final comment, the bids I lost out on seemed to be for better quality borrowers. I like this. It means that prosper has a structural mechanism whereby people with better credit get lower loan rates. Lending systems should reward personal responsibility.