10 Tips on how to get funded at Prosper
1.) Begin typing up your loan request off-line. It will do you no good to start and then lose all of your progress after the 20 minute Prosper time limit expires.
2.) Introduce yourself and state why you are requesting a loan. If you have a sad story about why you desperately need this loan, BRIEFLY describe it, but do not beg or go into too much detail, as it will not set you appart from other borrowers who also have sob stories. Instead, take accountability for your situation and focus on how you intend to correct it, with or without this loan. Personal accountability and responsibility are the hallmarks of someone who is taking positive steps towards financial freedom.
3.) Be polite. Say please and thank you, when appropriate.
4.) Include in your listing a COMPLETE budget, with a description of where your monthly paycheck goes now, and how the loan will positively impact your monthly cash flow. Do not exaggerate your income or play down your costs. Lenders recognize when someone fails to include expenses like food, gas for their car, or insurance. List EVERYTHING that you spend money on in a month.
5.) Show the bottom line. There should be a closing statement after all of this where you say something along the lines of, "As you can see, my monthly net income is $2800, and my monthly expenses are $2700. This loan will free up $300 per month, which I can use to easily afford this Prosper payment!"
6.) Provide a way for lenders to contact you, if necessary. This does not have to be your normal email address, or your home phone number...but it must be a way that they can reach you quickly with questions.
7.) Only ask for the amount of money that you NEED. The lower the amount requested, the easier it is to get funded.
8.) Set the terms of the loan at a high enough interest rate to capture the attention and standing bids of lenders. This will vary by Prosper credit grade, but here are some guidelines:
AA=10% or higher, A=11% or higher, B >=13%, C >=15%, D >=18%, E >= 22%, HR >=24%, NC >=24%
9.) Set the loan to run for the longest term that you can, to allow more lenders the opportunity to bid your interest rate down. DO NOT REQUEST AUTOMATIC FUNDING. Yes, automatic funding can theoretically get you funded faster at a definate rate of interest. However, most lenders feel that people requesting automatic funding have higher rates of default than normal, and therefore are higher risk. We are attempting to show that you are in fact a very good credit risk and deserving of a loan, so anything that raises the risk factor in a lender's eyes is bad.
10.) Finally, advertise your loan on the Prosper discussion boards! It never hurt to self-publicize.
2.) Introduce yourself and state why you are requesting a loan. If you have a sad story about why you desperately need this loan, BRIEFLY describe it, but do not beg or go into too much detail, as it will not set you appart from other borrowers who also have sob stories. Instead, take accountability for your situation and focus on how you intend to correct it, with or without this loan. Personal accountability and responsibility are the hallmarks of someone who is taking positive steps towards financial freedom.
3.) Be polite. Say please and thank you, when appropriate.
4.) Include in your listing a COMPLETE budget, with a description of where your monthly paycheck goes now, and how the loan will positively impact your monthly cash flow. Do not exaggerate your income or play down your costs. Lenders recognize when someone fails to include expenses like food, gas for their car, or insurance. List EVERYTHING that you spend money on in a month.
5.) Show the bottom line. There should be a closing statement after all of this where you say something along the lines of, "As you can see, my monthly net income is $2800, and my monthly expenses are $2700. This loan will free up $300 per month, which I can use to easily afford this Prosper payment!"
6.) Provide a way for lenders to contact you, if necessary. This does not have to be your normal email address, or your home phone number...but it must be a way that they can reach you quickly with questions.
7.) Only ask for the amount of money that you NEED. The lower the amount requested, the easier it is to get funded.
8.) Set the terms of the loan at a high enough interest rate to capture the attention and standing bids of lenders. This will vary by Prosper credit grade, but here are some guidelines:
AA=10% or higher, A=11% or higher, B >=13%, C >=15%, D >=18%, E >= 22%, HR >=24%, NC >=24%
9.) Set the loan to run for the longest term that you can, to allow more lenders the opportunity to bid your interest rate down. DO NOT REQUEST AUTOMATIC FUNDING. Yes, automatic funding can theoretically get you funded faster at a definate rate of interest. However, most lenders feel that people requesting automatic funding have higher rates of default than normal, and therefore are higher risk. We are attempting to show that you are in fact a very good credit risk and deserving of a loan, so anything that raises the risk factor in a lender's eyes is bad.
10.) Finally, advertise your loan on the Prosper discussion boards! It never hurt to self-publicize.
posted by ~Scott~ at 5:05 PM
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