ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

A New Way To Invest : Person to Person Lending

Updated on September 16, 2010

Prosper's Average Interest Rates

Prosper

Are you a member of Prosper?

See results

Advice on aquiring a personal loan

Prosper is a revolutionary peer to peer (person to person) loan concept. It basically allows individuals to be on the lending side or the borrowing side, cutting big banks out of the picture. Lenders have access to limited borrower credit information, and borrowers are allowed to follow the steps below to woo the lenders!

Below is very straight forward financial advice on how to get a loan request funded at the best rate possible per your credit band on Prosper. It is written as you the reader, are a prospective borrower.

This post will try to giving you direct input from a Lenders point of view. Remember, at the end of the day you want to create a listing that will make a Prosper Lender want to lend you money! This post will list many steps on how to achieve this, you the borrower are welcome to use all of the advice or some of it. I would recommend all points of advice being used, but also understand this can not be achieved in all circumstances.

I will give general lending advice plus specific advice situations that some borrowers will run into.

After reviewing this post, if you are planning on posting a loan on Prosper, I would be glad to review your listing description, make additional recommendations, and email it back to you.

1) You have to write a sharp detailed description of your loan request. To start off, I would first clearly state why you need the loan. Make sure that all of your whys add up to the total amount you are requesting. Make it extremely clear for the lenders.

2) Keep all comments positive in your description. Show the lenders that you believe your future is bright!

3) It is VERY important for you to portray in your description a few things:

a. Describe your ability to pay the loan back.

b. Describe the previous situation that made your credit in the state it currently is

c. Describe how you have changed your previous bad credit situation to a positive one.

d. Detail how you are going to prevent the credit situation from happening again.

e. Describe what the requested money will be used for and how this money will benefit your life and future

4) PICTURES PICTURES PICTURES add pictures – Big Smiles, Family if possible, Kids, Pets, and maybe your business logo..or a business related picture. I can not stress how important pictures are. You want the lenders to feel they have a connection with you. VERY Important – Pictures!! Try as hard as you can to get pictures on your loan. If there is not way of taking pictures, ask a friend to, if that is not possible...explain on the listing that you would have pictures, but no access to a camera.

5) Make your loan request personal! Mention your family, husband, your business. Why you love your business, how you started it, future expectations of your business, great customer experience, mention your town… house… anything that will drive a connection with a Lender. I was helping a lady who a son that was a firefighter. She mention this in her ad and and not only got funded because of it, but at a great rate. Lending Fire Fighters has seen her add and wanted to help.

6) Sometimes it helps if you can scan a paycheck, bank statement, W2 to prove to the lenders that you make as much as you say and have the ability to payback the requested money. CAUTION!! Do not let any account numbers, SSN, mothers last name, or drivers license show up in ANY form if you decide to go this route.

7) Clearly lay out your current incomes and expenses. Make it easy for a lender to see your totals by month. The more information you can give, the less they will have to think about. The more they have to think about or the more unknown the less they are willing to lend.

Example:

Monthly Income

$1000 – 1st Job
$ 200 – 2nd Job
$ 500 – Child Support
$1700 – Total Income

Monthly Expenses

$ 600 – Rent Payment (*If you own a home verify home ownership)
$ 464 – High Interest Loan (*$150 if Prosper Request funds)
$ 150 – Bills (Electric / Water / Phone)
$ 200 – Car Payment
$1314 – Total Expense

8) Make sure your Prosper Username is semi professional. Remember, the lender is lending you money and some names can frighten a lender off.

9) Explain in detail each negative point of your credit report. Honesty goes along way in the loan requests. You will be able to see the same credit points that the lender will be looking at by going through the 'borrow' section on Prosper.

a. ‘Now Delinquent’ – If you have any delinquencies please explain why / how these accounts became delinquent , why/how you will improve this, and why/how you will prevent this in the future.

b. ‘Amount Delinquent’ – What makes up this total

c. ‘Public records last 12m / 10y’ – explain this bankruptcy in detail. This is VERY scary to a lender if you are not upfront and explain.

d. Revolving credit balance: & Bankcard utilization: This section will show how well you manage your credit cards. It basically shows you what percent of your credit you are using out of total credit extended to you.

10) Debt to Income Ratio: An acceptable debt to income ratio is less than 25% in most cases. If your ratio is less than 27%, do not mention it in your Prosper ad, if it is high, you might want to talk to it. This ratio basically shows how much debt you have to how much you make. This is a huge metric used by lenders when you are buying a home and need financing. An example of this metric is if you had a debt to income ratio of 16%, it would mean you spend $16 in a month and make $100.

11) This might be the most important advice that I will give you and it will bring the most lenders to your auction. Prosper has general interest rates and dollar amounts associated with each credit line. If your initial dollar amount and interest rate do not fall near the general ones per your credit line… you loan request will never get looked at by lenders. If you create a loan request around the general amounts and interest rates, this will get lenders to pull up your request and read it… Getting the lenders to look at your request will give your loan description the opportunity to get their hearts!

I hope this peer to peer lending advice helped. I would be glad to discuss any point above or any additional questions you might have. I would be happy to review your new loan description at your convenience. Also please do not get frustrated if your first request does not get funded. Simply revise your listing, make it more eye-catching, expand your story, and possibly change up your photos.

Also, if you are interested in a borrower's template that will help you prepare for the actual loan request on Prosper please feel free to shoot me an email and I would be glad to send it over.

As always, thank you so much for reading!

Please check-out my other hubs! :)

Comments

    0 of 8192 characters used
    Post Comment

    • profile image

      Muhammad Nasir Azeem 

      9 years ago

      We are working for Madris Khadiga ul kubra in lahore if you interesting for its maintinance pls reply.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)