Prosper claims spike in borrowers seeking to pay off credit cards

Source: Prosper

Prosper.com, the world's largest peer-to-peer lending (P2P lending) marketplace based on an independent report from Deutsche Bank, today released November 2009 performance data.

Notable in November, the average credit score of funded borrowers was 718 and 54% of loans were for debt consolidation purposes.

"This is the second month in a row where the majority of borrowers on Prosper are seeking to knock out their credit card debt at better rates and terms," said Chris Larsen, Chief Executive Officer and Co-founder of Prosper. "Debt consolidation has always been the number one use case on Prosper with business loans being the second most popular. However, debt consolidation borrowers have historically tracked at approximately 45% of peer-to-peer loans. The fact that getting a peer-to-peer personal loan for debt consolidation has spiked for high credit score people who are consolidating credit card payments at a lower rate indicates that consumers are looking to get out from under their increasingly untenable variable credit card rates."

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