So does this mean Prosper interest rates will be further reduced in the higher risk notes (D - HR)? It wasn't that long ago I could find all the HR notes I wanted since there were many borrowers in that class that met my criteria. The new management changed all that though and those higher risk applicants got assigned a lower risk rate (lower interest rates). It was probably more fair and more accurate to the borrower, but gone were my 30% returns in that class. However, with the lower rates, it probably brought a few more borrowers to the platform - there's good and bad to everything. Lower rates may help to increase the supply of notes on the platform, by attracting more borrowers, but that may also mean fewer lenders attracted to Prosper as investor returns will be lower - not saying that's a bad thing..... So in a nut shell, more borrowers but lower investor returns.
I did a little research on FICO® 08 and found at least one thing in their scoring that may be a little disturbing:
"If you have a single serious delinquency, that is, one account that's gone 90 days past due or more, your FICO 08 credit score won't hurt as much if you have several other accounts that are in good standing."
So not paying your bills now is no big deal?? It's a big deal to me if I'm the lender on the other side of that borrower, 90 days late is serious. In my opinion that should be reflected in a persons credit score. But with FICO® 08 it's no big deal anymore and that borrower will have a higher FICO score now. I don't like it...
What does everyone think................