Prosper.com?

Question

Has anyone recently asked for a loan from prosper.com? Can you tell me how it works? I know that no one can see your Social Sec Number but I requested a loan and no one bid on it. Why? Are you promised a loan? Can someone tell me how this works? Thanks.

Answer 1

OK I got a loan through Prosper. You should join a group for starters. Try Ordinary People. StaciM is a very nice group leader, tell her I sent you and she will assist you in getting straightened out so your loan will be funded if it is feasible financially for you personally.

Once they bid your loan and it is funded fully, you go through the regular banking type process of signing documentation and supplying information to Prosper (just like a regular financial institution).

Like any Bank, Prosper Groups expect that one must have realistic financial goals, and income. You have to prove you will repay it in a timely fashion. If you look at the Prosper statistics, there have been almost no defaults on loans on this site. I believe there were three in totality when I looked. Out of millions and millions in loans, three. Great average. If you want you can even lend your own money out...and make money off of it.

Answer 2

I am a frequent lender on Prosper.com. Many borrowers have to list their loans several times before getting funding. Here are common reasons why some loans don't get enough bids:

1. Your listing is bad. Lenders are turned off if you sound too desperate, if you don't give enough information, or if your story sounds fishy. Be very descriptive; look at successful listings for ideas. Also, if you seem uneducated (or your story demonstrates consistent bad decision making) then they will pass on your listing.

2. Your interest rate is too low. Some states have a maximum interest that is like 12% to 15%. If your credit grade is D or worse and you can only offer that interest rate (or you just choose to go with a low rate), lenders are going to pass because there are other borrowers offering 20-29% interest rates for the same risk.

3. There are more borrowers than lenders. Sometimes you just have to keep trying until you get lucky. There's no reason some loans fund and others don't. There are hundreds of listings every day, asking for 100's of thousands of dollars.

Go on the website and read the info under Lenders as well as Borrowers to learn how it works and see it from both sides.

Good luck!