No. of Recommendations: 1
I would question the default rates that have been quoted. I still have outstanding loans on prosper.com and can tell you that the default rates are much higher in reality than how they were advertised. If you look at lendingstats.com, you will see that someone has aggregated the return for all of the portfolios held at prosper.com and the default rates.

It looks like someone is trying to do the same for lending club also. Go to lendingclubstats.com and you will see a similar presentation. The current default rate is 4.2%. Note that the number of loans over 30 days late is also 4.2. It has been my experience that once these loans go late, they don’t come back.

I would suggest that you visit the lender forum on this site and see what type of issues they are discussing before opening an account.
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