Every loan application is assigned a Prosper Rating –our proprietary system that allows us to maintain consistency in our evaluation. Prosper Ratings allow potential investors to easily consider a loan application’s level of risk because the rating represents an estimated average annualized loss rate range to the investor.
The Notes that correspond to specific borrower listings are offered pursuant to the prospectus. Investors should read the complete description of the Notes and risks associated with making an investment in the Notes, as well as other information about Prosper and our platform.
How is the Verification Stage different from the Prosper Rating?
The Prosper Rating is our proprietary system that allows us to maintain consistency when evaluating each loan application. Prosper Ratings allow investors to consider a loan’s level of risk because the rating represents an estimated average annualized loss rate range.
In contrast, Verification Stage is not a measure of potential credit risk. It is only an indication of the progress of a loan application based on verification of required information and documents. However, a loan in Verification Stage 3 indicates that the borrower’s information is farther along in Prosper’s verification process thereby increasing the likelihood that the loan will originate. Learn about Prosper’s verification process.