How much money should I bid on Prosper loans?
Like with all types of investments, diversification of your Prosper loan portfolio is key in reducing risk. It is best to spread your money amongst many loans instead of having all your eggs in one basket. The minimum bid on a Prosper loan is $50 and that is what I would recommend to all lenders.
If you have a large sum of money to invest, then maybe I would go with $100 per bid as it is all relative after all. The key is to diversify your portfolio.
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As a newbee to prosper, I thank you for this valuable information. Are manual bids better having your bids picked for you? I have tried both, but I keep getting out bid when I do it manually.
Thank you,
Tom
Hi Tom,
I usually bid on loans during the last couple of hours before they end. This way, you have a better chance of winning the bid. Also, I would avoid whole integer percentages for the interest rate. For example, if you were planning to bid on a loan at 15%, try using 14.99% instead or even 14.95%.
This is a tiny trick that will work better for you in the long run =)