Does anyone know anything about Prosper.com?

Question

I have looked at the site and don't fully understand how it works. I was hoping someone who might have had experience with the site and the program could give me some sort of insight to its workings. I want to get a loan from them, but want to get a full understanding of the process. Any and all information will be appreciated.

Answer 1

Prosper works a little bit like Ebay. The borrowers act like sellers on Ebay, and the lenders act like buyers. instead of bidding on the price, lenders bid on the interest rate.

So, as a borrower, you will go on, let them get your credit report and score, and give them information about your income, how much you want, a story of why you want the borrow, and what the maximum rate you are willing to pay.

If your loan is an attractive investment to the lenders, they will bid an amount and a rate. When the amounts that were bid fills up the requested loan amount, any additional bids by lenders will have to have a lower rate than the current highest rate in order to "win the bid" This is good for the borrower since a lot of interest in the loan will actually bid the rate downward and make the loan less costly.

As an example, say you have a $1000 loan request for no more than 15%. The first 10 lenders each bid $100 on your loan at 15% and now your loan is fulfilled. However, the next lender comes in and wants to lend to you, he would have to bid at a rate below 10% for him to be able to lend to you. If he bids $100 at 9.5%, then the last lenders who bid $100 at 10% loses and the new lender gets in to fund your loan.

Besides the bidding model, the loan process for borrower is pretty much standard, except you get to post pictures and information trying to convince people to bid and fund your loan.

I recommend:
1) Going through Prosper.com's forum and read up on the comments by lenders and borrowers

2) You may want to join a group with an experienced leader who will show you how to post a loan that attracts lenders.
(This doesn't always work).

3) Borrowing on prosper.com is as safe as borrowing at a bank. However, not every loan will be funded by lenders, so you may have to learn how to do it through several tries.

4) You can also check out 3rd party application sites that have developed around prosper.com such as http://www.lendingstats.com/

Good luck!

Just Be!

Answer 2

I have a loan with Prosper. My advice would be to join a group. Look for a group that has a high rate of funding. Talk with the group leader and explain your situation. Most everyone on there wants to see that you have a commitment to getting out of debt. If you can lay out a good plan for repaying the loan, and what the money will be used for, there is a good chance that you will be funded. Obviously, the better your credit the better the rate and amounts that you're going to get. Refer to the charts showing the typical amounts funded at your credit level and the rates. If you post your loan in those parameters, you'll have a better chance to get funded. I had to post a couple times before I figured out what worked the best. I have had my loan for 5 months now, and I am getting back on track. It's a great website, and a great idea!

Answer 3

I've tried to get money off of Prosper. It's kind of hard. You have to get through a group leader and well mine never answered my profile. He had 10 days or so to approve my loan and he never answered. Maybe he was on vacation or something. I also see a lot of people only getting 1 bid out of 200 that they need. It is probably easier to lend on there then it is to get a loan. At least you can look for loans that are have almost all the money that they need.

Answer 4

I have lent money on prosper. Allow some time to get yourself verified and your loan bid on.

One thing that will increase your chances of getting the loan terms you want is if you join a highly rated group. If there is any information in your records that is incorrect, be sure to explain it in your loan listing, and provide evidence if possible.