Is it possible that default rates are better predicted by factors other than credit score?
Sure, but credit scores remains the simplest and most universal measurable factor.
Truth or Fiction? : From a Lenders perspective there is much more money to be made in HR folks that are willing to pay than in ‘good’ credit score folks that are not as likely to pay….
Every borrower is willing to pay in theory, other than the ones that are deliberately ripping Prosper off because they know Prosper won't do anything to them. Good credit score folks
are more likely to pay than HR folks, that's the issue. If we could accurately spot the good score people that will default and the HR people that will complete their payments through the end, well hell, why even bother with Prosper, that level of prognostication could be put to better use on the stock market or the state lottery, and banks would be beating down your door to learn your method too.