Prosper Borrowing Tips

Well I've bid on many loans now, and I have noticed that most of them just do not end up getting 100% funded. It occurs to me that anyone wanting to borrow some money might benefit to know some of the things us borrowers look for when bidding on a loan.

Remember that in essence, you are competing with all the other people who want to borrow money, so you DO have to market yourself. Prosper will categorize you according to your credit, and beyond that, it's pretty much up to you.

First of all, if you end up being scored anything less than "D" credit, you may want to consider trying to repair your credit a bit before listing your request. Of course, that may be the purpose of your request, and if that's the case, I say "go for it!" You won't get a loan if you don't try.

Next you need to figure out how much you would like to borrow and what interest rate you are willing to pay. There is a calculator you can use to figure out what your payments will be. I recommend only borrowing what you really need, and what you can afford. I do not like to bid on anything more than $10,000 simply because on a three-year loan, the payment seems really big. I want the borrower to be willing and able to pay this loan for the long term.

Choose the highest interest rate that you are willing to pay. Remember, that if you get enough bids to have your loan funded, this rate will likely be bid down to a lower rate. If you choose a rate that is too low, no one will bid on it.

Do not do automatic funding. It may seem like the quickest way to get your money, but there is no chance that your rate will be bid down, and it makes you seem desperate, which is not attractive to lenders.

Last, and most important, BE HONEST! Describe why you are in your current financial situation, what you are going to use the money for, and why lenders should trust you with their money. Remember, I am deciding whether to lend you my hard earned cash! I am not just going to give it to anyone who's asking for it. Answer any questions asked of you, and if possible, get endorsements from friends. It always means something to me that a borrower has someone who will vouch for them.

Well I hope this helps, and if you are looking for more info on Prosper, or want to join, please use my link below. Also, please feel free to ask me questions!