Each month, we post an interest rate comparison between LendingClub.com and Prosper.com for obtaining a loan.  The rates are pulled on the same day, by the same two individuals, and both request the same loan amount.  Both borrowers use their own unique information for each lending site  (income, employment status, social security number ect.).

User 1 Rate Comparison

LendingClub.com - DENIED (Previously approved at 14.98%)

Prosper.com - DENIED (Previously approved at 27.29%)

User 2 Rate Comparison

LendingClub.com - 15.99% APR (Previously DENIED)

Prosper.com - 28.03% APR (Up by 3.72%)

This month we have some interesting results again.  User 1 was DENIED credit by both LendingClub.com and Prosper.com. After discussing the results with User 1, we’ve come to the conclusion the denials are due to a recent home purchase.  User 1 has had four hard inquiries in the past twenty days  reporting on all three credit bureaus.   User 2 was previously DENIED credit at LendingClub.com but this month was approved at a rate of 15.99%.  User 2 also saw an increase in APR from Prosper.com this month.

This will be the third month in a row in which LendingClub has had a lower borrowing rate than Prosper.  We’ve also noticed that they have not offered a borrowing rate higher than 15.99%.  Again, it seems that borrowing from LendingClub.com is ideal.

We’d love to hear comparisons from other users! Please share the difference in rates you have experienced between the two peer to peer lending sites.  It is free to check, and neither sites pulls a hard hit on your credit report.  Checking your rates WILL NOT effect your credit score.

Disclosure: I do receive a commission if you are approved for a  loan using one of my affiliate links.  I do not get a commission if you apply directly to the sites.  Either way, congrats on getting a great loan, and thanks for your support. 

The post Rate Comparison – LendingClub vs Prosper – February 2013 appeared first on PeerLenders.com.