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Prosper Loans: The Ebay of Lending
by rebuildcreditscores.com
by rebuildcreditscores.com
Prosper.com is a website where borrowers
and lenders meet. It was created to make
consumer lending more financially and
socially rewarding.
The vision for Prosper was "an eBay for
loans". Instead of having to borrow at
whatever rate is available from mainstream
banking institutions, you can get your loan
request bid on by several lenders.
Those lenders may be other consumers or
companies looking to get a good return on
their investment.
and lenders meet. It was created to make
consumer lending more financially and
socially rewarding.
The vision for Prosper was "an eBay for
loans". Instead of having to borrow at
whatever rate is available from mainstream
banking institutions, you can get your loan
request bid on by several lenders.
Those lenders may be other consumers or
companies looking to get a good return on
their investment.
Getting a Prosper Loan
To get a loan, borrowers must create a loan listing detailing your loan request. You decide how
much you want to borrow ($100 to $25,000) and you choose the maximum interest rate you
are willing to pay. People who lend bid down the interest rate. Prosper takes the bids with the
lowest interest rates and turns these bids into one loan.
Prosper then handles all loan administration tasks including loan repayment and collections on
behalf of the matched borrower and lenders, throughout the life of the loan. You may post a
picture or you may remain anonymous. It is best to include as much detail as possible when
creating your listing and let potential lenders know how you intend to use the loan proceeds.
Lenders on Prosper
Prosper loans are funded by one or more individuals. Lenders can come from a variety of
sources. Many of the lenders spread their risk by offering small loans to multiple borrowers.
You may never know who your lender is because you’ll have little to no interaction with them.
Even though your loan may be funded by many lenders, Prosper handles all transactions as
one loan. You repay your loan directly through Prosper.com. Prosper will automatically debit
your bank on the monthly due date and the loans are repaid over three years. There are no
pre-payment penalties and the loan can be paid off at any time during term of the loan.
Qualifying for a Prosper Loan
When you request a loan, Prosper.com gathers some information about you. They will check
your credit and verify your identity. Lenders see a "credit grade" (along with some other
information) that helps them decide whether or not to lend to you. If you have a poor credit
grade, it will be harder to get a loan - or you may need to pay a higher interest rate. A
minimum credit score of 520 is required.
Prosper Interest Rates
The interest rate is fixed for the life of the loan and does not change in the event of late
payment or for any other reason. You determine your interest rates; however, it really depends
on your credit scores. The interest rates may range from very low up to 30% or more. The
catch is if you have bad credit, you may not get many loan offers at a lower interest rate. Bad
credit borrowers are more likely to get funded if they choose higher interest rates.
Prosper Loan Fees
Prosper generates revenue by collecting a one-time 1% to 3% fee on funded loans from
borrowers, and assessing a 0% to 1% per annum loan servicing fee to lenders.
For more information visit: www.prosper.com
To get a loan, borrowers must create a loan listing detailing your loan request. You decide how
much you want to borrow ($100 to $25,000) and you choose the maximum interest rate you
are willing to pay. People who lend bid down the interest rate. Prosper takes the bids with the
lowest interest rates and turns these bids into one loan.
Prosper then handles all loan administration tasks including loan repayment and collections on
behalf of the matched borrower and lenders, throughout the life of the loan. You may post a
picture or you may remain anonymous. It is best to include as much detail as possible when
creating your listing and let potential lenders know how you intend to use the loan proceeds.
Lenders on Prosper
Prosper loans are funded by one or more individuals. Lenders can come from a variety of
sources. Many of the lenders spread their risk by offering small loans to multiple borrowers.
You may never know who your lender is because you’ll have little to no interaction with them.
Even though your loan may be funded by many lenders, Prosper handles all transactions as
one loan. You repay your loan directly through Prosper.com. Prosper will automatically debit
your bank on the monthly due date and the loans are repaid over three years. There are no
pre-payment penalties and the loan can be paid off at any time during term of the loan.
Qualifying for a Prosper Loan
When you request a loan, Prosper.com gathers some information about you. They will check
your credit and verify your identity. Lenders see a "credit grade" (along with some other
information) that helps them decide whether or not to lend to you. If you have a poor credit
grade, it will be harder to get a loan - or you may need to pay a higher interest rate. A
minimum credit score of 520 is required.
Prosper Interest Rates
The interest rate is fixed for the life of the loan and does not change in the event of late
payment or for any other reason. You determine your interest rates; however, it really depends
on your credit scores. The interest rates may range from very low up to 30% or more. The
catch is if you have bad credit, you may not get many loan offers at a lower interest rate. Bad
credit borrowers are more likely to get funded if they choose higher interest rates.
Prosper Loan Fees
Prosper generates revenue by collecting a one-time 1% to 3% fee on funded loans from
borrowers, and assessing a 0% to 1% per annum loan servicing fee to lenders.
For more information visit: www.prosper.com
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