Eric's Credit Community

How do Prosper loans perform as they age? Are today's loans any better than loans from 2 years ago in terms of safety? The two charts on this page attempt to provide an apples-to-apples comparison of late rates over time. The first chart shows what percentage of loans originated during each month were 1 or more month late after 6 months of aging. This effectively shows how each monthly batch of loans compares to every other month's.

The second graph shows the credit mix for each month's loans. This information is necessary to properly interpret the data in the first graph since months with a lower average credit grade are likely to show higher late rates. For example, in Dec. of 2006, roughly 50% of loans were sub prime while in Aug. of 2007, only 20% of loans were sub prime. Therefore you would naturally expect to see a lower late rate for Aug. 2007 loans than for Dec. 2006 loans. This may not hold up well due to the small sample sizes, but that's the general idea.