Prosper Ratings
Every listing on the Prosper Loans Marketplace platform is assigned a Prosper Rating—a proprietary rating developed by Prosper that allows us to maintain consistency when assigning a rating to the listing regardless of loan seller, type of credit score used or type of loan being offered for sale.
Prosper Ratings allow you to easily analyze a listing's level of risk because the rating represents an estimated average annualized loss rate range.
| Prosper Rating |
Est Avg Annualized Net Loss Rate* |
| AA |
<= 1% |
| A |
1.1–2.5% |
| B |
2.6–5.0% |
| C |
5.1–7.5% |
| D |
7.6–10.0% |
| E |
10.1–15.0% |
| HR |
> 15% |
* estimated average annualized net loss rate
For Open Market listings, the loan seller provides Prosper with the loss rate on the loans being offered for sale which we then convert to a Prosper Rating. The loss rates provided are based on the historical performance of borrowers on loans with similar credit characteristics.
For Prosper borrower listings, the loss rate is based on the historical performance of borrowers on Prosper loans with similar characteristics and is determined by two scores: (1) the credit score, obtained from a credit reporting agency, and (2) an in-house custom score, the Prosper Score, built on the Prosper population. The use of these two scores will determine an estimated loss rate for each listing (based on the historical performance of previous Prosper loans), which then determines the Prosper Rating.
The estimated loss rates are not a guarantee and actual performance may differ from expected performance. Learn more about estimated loss rates.
