Archive for September, 2007

Have you considered a Prosper Loan?

Sunday, September 9th, 2007



What is a prosper loan?

You’ve seen the rise of p2p, also known as peer to peer, or people to people, sharing networks. They are simply networks where people share information, products, files, etc., with each other. You might not know that these peer to peer or people to people networks have entered the loan marketplace.

One of the biggest peer to peer or people to people loan networks is Prosper. A Prosper loan is a loan that anyone in the United States with a credit score over 520 can apply for. If you are looking for an unsecured loan at rates that are a lot better than payday loans or cash advances, then a Prosper loan is a great deal.

Click the link to apply for a Prosper loan now.

With a p2p loan you request a certain amount (from $1000 to $25,000) at a certain interest rate and then other individuals bid on portions of your loan. If enough people bid on your loan it is likely to get funded. You will then pay the loan plus interest over a three year period.

If you are interested in getting an unsecured loan, in other words one that you don’t have to put up any collateral for, then there are certain secrets to getting your Prosper loan funded.

First, once you have applied for a loan, Prosper will pull your credit report through one of the credit bureaus, Experian. You’ll be given a credit grade from AA – HR, with AA being the best. Those with the best credit grade usually set up their loan request at a lower interest rate than those with lower credit ratings.

Usually, the lower amount of money you request, the lower your interest rate will be. At the time of this article, the current average rates for some selected prosper loans look like this:

AA ($1000-$5000) 8.37%

AA ($10000-$25000) 11.11%

A ($1000-$5000) 10.11%

B ($5000-$10000) 14.49%

C ($5000-$10000) 17.98%

D ($5000-$10000) 20.75%

E ($10000-$25000) 28.50%

Now, one thing you need to keep in mind is that in some states, Prosper is limited to a maximum interest rate and if you live in one of those where the maximum interest rate allowed to be charged is fairly low your loan might not get funded, especially if you have one of the poorer credit ratings. It might not get funded even if you have a great credit rating. For instance, Pennsylvania’s current maximum interest rate for a Prosper loan is only 6%. If someone can get a federally insured 5% do you think they’ll invest in an unsecured loan at 6%? Highly unlikely. That low interest rate, however, is the exception rather than the rule. Some states, however, are not yet available for Prosper lending.

So, one secret to getting your Prosper loan funded is to initially set your interest rate at a figure enticing enough to get others to bid on your loan. The better your credit score of course, the lower the interest rate you can set your request at.

Another secret to getting your Prosper loan funded is to join a group. Joining a group at Prosper instills more confidence in the lenders. It has been proven that those who are group members have a better chance of getting their loan funded and when it does fund, it usually funds at a lower interest rate than those who are not members of groups.

There are all sorts of groups on Prosper catering to a variety of different interests. There are groups of real estate investors, teachers, members of certain states and organizations, etc. Group leaders are allowed to charge a certain percentage to help the individual fund the loan. You can find groups that don’t charge any extra fees saving you more on the total cost of your loan.

Speaking of fees, what does it cost to get a Prosper Loan? Prosper charges between 1-2% to fund the loan or $25 whichever is greater. There is also a .5-1% annual servicing fee.

Another way to enhance your ability to get a loan is to ask your friends or family to join Prosper, endorse your loan, and bid it on themselves. This is another way to validate your character and offers social proof which spurs others to bid on your listing.

When crafting your loan request it is important that you list all your income and expenses in some detail so that potential bidders know that you have the income and assets to repay the loan. Also, make sure to emphasize not only your ability to repay the loan but your intention to make it a priority to do so. The more facts you present to support your ability to repay the loan, the greater your chance that the loan will get funded.

In regards to writing up your loan request, don’t whine about the bad deal that life has dealt you, even if it has. If you have had catastrophes in the past that clearly weren’t your fault, and have lead to bankruptcy or serious delinquincies on your credit report, you can let others know. However, if you were the cause of most of your bad credit problems, own up to them and let potential bidders know that this is a new you. Emphatically let them know that you Will pay this loan back no matter what the cost.

Follow the advice outlined above and your chance of getting the money you need through a persoanl unsecured loan from Prosper will be greatly enhanced.

To apply for a Prosper loan click the link.

For more information, please visit P2PWealth.com. Click the link to see about joining our P2PWealth group at Prosper.

And, if you want to make a great interest rate and get a $25 signup bonus become a lender on Prosper now!

Have a fantastic day,

Bob K.

P2pWealth.com

Wealthvibes.com

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