How do I get started bidding on loans?
Once you are set up as a lender and have funds in your Prosper account, you are ready to start bidding on loan listings. Just go to the "Bid on Loans" tab to get started.
From the "Bid on Loans" tab, you can search for listings by keyword, borrower credit grade, and a few other parameters. If you want to set more specific search criteria, you can do an advanced search. Learn more about advanced search and saved searches.
What are credit grades?
A credit grade is a letter grade that Prosper assigns you based on a borrower's credit score, for use solely in the Prosper marketplace. Learn more about credit grades and other credit data.
What is a debt-to-income ratio?
Part of a borrower's credit profile is a debt-to-income ratio. Debt-to-income ratio (or DTI) is a measurement of the borrower's ability to take on additional debt. This number takes into consideration how much debt the borrower had prior to their loan in addition to what their debt will be if the loan they are requesting is made. (Their debt history is part of their credit history, and is reported to Prosper in the initial credit check.) The DTI is calculated by dividing the borrower's annual income (before taxes) into their annual non-housing debt payments, and is expressed as a percentage. Learn more about debt-to-income ratio and other credit data.
What is automatic funding? 
Automatic funding is an option for borrowers who want their money quickly and would be satisfied by a specified interest rate, rather than a potentially lower interest rate that could result if the listing were subject to continued bidding.
In the case of automatic funding, as soon a borrower's requested loan amount is met by enough bidders, their listing will close and loan proceeds will be transferred into the borrower's bank account. Since the borrower didn't keep the listing posted long enough for bidders to bid the interest rate down further, the interest rate on immediate funding listings may be higher than other similar listings.
It is still possible to be outbid on an automatic funding listing. Because the listing doesn't fund until enough bids have been placed, and since the bid counting process is the same for automatic funding listings as it is for non-automatic funding listings, if a lender has placed a bid of more then $50, it is possible that he or she will be outbid by a lender who has placed a bid at a lower interest rate. In case of a tie in interest rates, the lender who bid first will get priority, but bids will always be counted by minimum interest rate first, and then time of bid.
How do I read the bid history?
Before bidding on a listing, you should look at the bid history to understand how many lenders are bidding on a loan, and how much money each one has offered to put up for the loan. Learn how to read the bid history.
How can I calculate my risk before bidding?
Before bidding on listings, you should look at the marketplace performance page, which includes performance, delinquency, and default data for Prosper marketplace loans. Using this data, lenders can gain a better understanding of the dynamics of the Prosper marketplace, and use that knowledge to minimize the risk taken on borrowers. Learn more about the marketplace performance page.
Okay, I understand—when do I get to place some bids?
There are two ways to bid on loan listings at Prosper:
- Place a manual bid: Place bids one at a time by visiting each listing, reviewing the details, and clicking the "Place bid" button. You will enter the amount and rate of your bid, and the bid will be placed. Learn about manual bidding.
- Use portfolio plans: For your convenience, Prosper has set up 4 "model" portfolio plans you may wish to use as templates for your portfolio plans. Each of the 4 plans presents a range of progressively increasing risk and potential return based on historical loan payment performance of Prosper borrowers. Learn about portfolio plans.
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Getting started
Understanding listings
Finding listings
Bidding on listings
Listings become loans
Managing your loans
Delinquencies and defaults
Statements and taxes
Lending tutorials
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