Prosper/Lending Club-Any regrets?

[racer-x]

I ran my info through Prosper for the helluvit.
They said i qualify for up to $35k @12%.

$20-22k @ 10.65% is where i would be. $675 mo payment for 3 yrs.

This seems appealing to me. Id lnock out all my cc debt, have 1 simple payment, scores would go up, interest rate on prodper loan is lower than the 5 revolvers carrying balances....

Im trying to find a negative in doing this in a couple months.

Anybody do this and have regrets or advice?

I have researched it, nothing really bad out there that turns me off to it.

[Berk]

The way this works is Prosper acts as a clearing house for you and investors. You apply for the loan. Prosper tells you what yo qualify for based on your credit history with a soft pull. You tell Prosper how much you want to borrow and Prosper shares this info with potential investors who will loan you the money at the stated interest rate. You may get funded quickly or it may take a little while depending on how your credit file appears to the investors. Pretty neat idea actually.

I got a 15K Prosper loan for home improvements. I think my rate was 6% or so. No regrets at all. I applied on a Saturday, was fully funded by Sunday, got the paperwork in Monday and the money was in my account by Wednesday. Quick and painless from my point. Would do it again in a heartbeat.

[racer-x]

Thanks Berk.

I'm going to strongly consider this in a few months.  Scores are currently 700-717 across the board.  1 derog on TU dated 2010 - paid $165 collection, $150k in CL's, 6/20 revolvers reporting balances, overall utilization 18%, 3 installment loans (2 auto, 1 motorcycle) totalling $32k.

I think I can be close to 730 in a few months.

I also have 2 INQ's in the past 6 months...co-sign for small Sallie Mae student loan and a HP by US Bank for a CLI (much more to that story, I was coerced into doing so for my own good by US Bank, lol).  No new accounts since August, except for the small Salli Mae deferred loan.

I have quite a few INQ's falling off in a few months, and quite a few accts that will be  a yr old in a few months.

Letting those INQ's fall off, new accts hitting the 1 yr mark, and getting my score closer to 730 should help out considerably with interest rate and approval with Prosper.

Prosper is blowing my email up with emails to 'complete' my application....lol.

[Anonymous]

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@racer-x wrote:
I ran my info through Prosper for the helluvit.
@They said i qualify for up to $35k @Anonymous%.

@$20-22k @ 10.65% is where i would be. $675 mo payment for 3 yrs.

This seems appealing to me. Id lnock out all my cc debt, have 1 simple payment, scores would go up, interest rate on prodper loan is lower than the 5 revolvers carrying balances....

Im trying to find a negative in doing this in a couple months.

Anybody do this and have regrets or advice?

I have researched it, nothing really bad out there that turns me off to it.

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I have a Prosper loan, and I have learnt after the fact that redit report agency doesn't have much love for consumer finance loan companies like Prosper and Lending Club. Even just one installment loan and you will get a "too many consumer finance accounts" flag which negatively affect your credit report and score. The reason is that these loans used to (and sitll do) have a reputable of high risk, high intertest and carter to desperated people that cannot get a loan from anywhere else (kinda true for my case when I applied for it).

However, that is not a huge negative as I have successfully applied for many credit cards (initial CL upto $6500) and CLI while having an active Prosper Loan. The "too many consumer finance accounts" is usually at the bottom of the list, and if you're decline a card or a CLI then the list of negative flags is usually at least 3-4 items. So there is really not much to worry about it. Even if you're declined a new credit line or loan, you can alwasy call underwritters and ask them to reconsider. That works all the time for me.

With regards to credit card debt consolidation, I recommend you to talk to your bank and local banks/credit union first. They may be able to offer a competive deal, and if you do get a loan from them, that will be a positive mark  for your credit report instead of a negative one.

TL;DR: I do regret getting Prosper as it is a negative flag on credit reports ( "too many consumer finance accounts"), but it's a very small negative and you can usually work that out with your lenders. Try to get a credit card debt consolidation loan from a real bank/credit union first if you're considering a loan from Prosper.

[Anonymous]

I've never personally gotten one, but if the interest rates are better than your credit cards and any other loan you're shopping around for, I'd say go for it. 

[DaveInAZ]

I did a $5k loan from Prosper in June @10.89% and I'm happy. I took a 0% balance transfer advance from my Barclays MC that I thought I could pay off in time but I still owed $3k in June and it would turn into 22.9% in Sept. Lending Club was mailing we "consolidate you CC balances into a loan from LC" offers, so I tried them first - they offered around 28%! - consolidate 22.9% & 17.95% CC debt into a new 28% loan??? No thanks! Propser offered 10.89% so I jumped on it, and was funded in 1 day. My Fico was around 640 then.  I never get those "too many consumer finance loans" messages, just a "Loan balances too high!" - the Prosper balance is down to just over $4k now, what the heck do they want???

I have my house up for sale and will pay off Prosper when it sells, I just got a used (2013) car loan and one installment loan is enough, and at 1.99%, I like that loan.

[dlynk196]

Hi-

I just took a prosper loan on January 12th of this year - Nothing appears on my credit report as of yet. Does anyone here know when I can expect for it to hit my report? Will it be March 1st (this weekend) or longer? I see some have taken a loan, so just curious. My first payment was 2/9/15.

Thanks!

Dan

[thom02099]

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@Anonymous wrote:

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@racer-x wrote:
I ran my info through Prosper for the helluvit.
@They said i qualify for up to $35k @Anonymous%.

@$20-22k @ 10.65% is where i would be. $675 mo payment for 3 yrs.

This seems appealing to me. Id lnock out all my cc debt, have 1 simple payment, scores would go up, interest rate on prodper loan is lower than the 5 revolvers carrying balances....

Im trying to find a negative in doing this in a couple months.

Anybody do this and have regrets or advice?

I have researched it, nothing really bad out there that turns me off to it.

---

I have a Prosper loan, and I have learnt after the fact that redit report agency doesn't have much love for consumer finance loan companies like Prosper and Lending Club. Even just one installment loan and you will get a "too many consumer finance accounts" flag which negatively affect your credit report and score. The reason is that these loans used to (and sitll do) have a reputable of high risk, high intertest and carter to desperated people that cannot get a loan from anywhere else (kinda true for my case when I applied for it).

However, that is not a huge negative as I have successfully applied for many credit cards (initial CL upto $6500) and CLI while having an active Prosper Loan. The "too many consumer finance accounts" is usually at the bottom of the list, and if you're decline a card or a CLI then the list of negative flags is usually at least 3-4 items. So there is really not much to worry about it. Even if you're declined a new credit line or loan, you can alwasy call underwritters and ask them to reconsider. That works all the time for me.

With regards to credit card debt consolidation, I recommend you to talk to your bank and local banks/credit union first. They may be able to offer a competive deal, and if you do get a loan from them, that will be a positive mark  for your credit report instead of a negative one.

TL;DR: I do regret getting Prosper as it is a negative flag on credit reports ( "too many consumer finance accounts"), but it's a very small negative and you can usually work that out with your lenders. Try to get a credit card debt consolidation loan from a real bank/credit union first if you're considering a loan from Prosper.

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This is simply not true.  Lending Club loans show as an Installment Loan.  No mention of "consumer finance accounts".  There was absolutely no negative connotation to my Lending Club Loan, and as you can see in my signature, my scores certainly didn't suffer. 

One way to think of Lending Club (and Prosper for that matter), is as a variation on crowd funding.  It's peer-to-peer lending, not consumer finance.  That would be something like Household Finance or lenders that charge outrageous fees and interest. 

More on Lending Club:  Lending Club

[Anonymous]

I have a 25k lending club loan and it definitely shows up as a "consumer finance loan" negative score factor. Doesn't seem to hurt much though, as my scores are also 800+. Score factors are pretty useless in general because the bureau will always return something -- nobody has a perfect score. There are a few other threads where people have noticed htis score factor too

It does not show on the report itself, but that does not give you the whole picture. When you get a copy of your report, it shows everything they store about you but it does not include information on the lender's account with the bureau -- part of that information (which is provided to banks) is the lender's classification eg, Store, Bank, etc. You also only see the raw data and not any calculated attributes the bureau may provide (for a fee)

I have no concrete knowledge of how they are marking Lending Club as a consumer finance loan but that is my best guess from having worked a great deal on the automated processing of bureau reports

Anyways, to the OP's question -- My only regret is that I did not ask for enough to cover all my CC debt after the lending club fees to really start fresh. I still had 2-3k debt to deal with. Still, I consolidated from 20% CC debt down to 8% with all my cards maxed out at the time and boosted my FICO 100+ points. Took under a week to get the money. Fantastic experience; especially since they never even did a hard pull

Now that my utilization issues are fixed I could probably refinance with a CU but I'll have it paid off early anyway so no big deal. I tried and failed to go that route initially

[Anonymous]

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@racer-x wrote:
I ran my info through Prosper for the helluvit.
@They said i qualify for up to $35k @Anonymous%.

@$20-22k @ 10.65% is where i would be. $675 mo payment for 3 yrs.

This seems appealing to me. Id lnock out all my cc debt, have 1 simple payment, scores would go up, interest rate on prodper loan is lower than the 5 revolvers carrying balances....

Im trying to find a negative in doing this in a couple months.

Anybody do this and have regrets or advice?

I have researched it, nothing really bad out there that turns me off to it.

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I actually loan money to people on there once in a while.. It is great and I have never been burned so far.. Knock on wood.  Prosper is great it is not because it makes me money.  Last year, there was a guy who needed a loan.  His initial interest rate was 12.99.   Last week, he came back for a 2nd although the 1st one was active and hasn't being paid.  He wanted a loan of $19,000 and wait ...for... it..  His interest rate was 5.06% for 5 years all because of his history, is proper score and his credit score going up.  His $19,000 was funded less than 24 hours.  It is a great place for loans.

Lastly, the loans report as "installment loans" and nothing else.