topic Re: Prosper loan question in General Credit Topics

Prosper loan question

Calidreaming — Wed, 06 May 2015 15:07:13 GMT

I applied for a personal/consolidation loan on Friday through Prosper and it fully funded a few hours after it was listed. I immediately uploaded all the documents they asked for. Now it's been in review for the past three days and I'm getting nervous.

Is it just a matter of me submitting all the information they need at this point or is there still a chance they will deny me the loan after all of this?

Re: Prosper loan question

Anonymous — Wed, 06 May 2015 15:15:46 GMT

@Calidreaming wrote:
I applied for a personal/consolidation loan on Friday through Prosper and it fully funded a few hours after it was listed. I immediately uploaded all the documents they asked for. Now it's been in review for the past three days and I'm getting nervous.

Is it just a matter of me submitting all the information they need at this point or is there still a chance they will deny me the loan after all of this?

If they review the documents and it does not meet their standards, they can unfund the listing. Just give them every document they need. You can also follow up by sending them an email from the contact section when you log in. They usually respond in 24 hours.

Re: Prosper loan question

Calidreaming — Wed, 06 May 2015 15:18:09 GMT

Thanks. They just asked for a driver's license, social security card and voided check so I'm wondering why that is taking so long.

Re: Prosper loan question

Anonymous — Wed, 06 May 2015 15:49:55 GMT

@Calidreaming wrote:
Thanks. They just asked for a driver's license, social security card and voided check so I'm wondering why that is taking so long.

If that is all that is needed then you should be fine. The loans once funded go through Web Bank. You should probably see it in your account by Friday.

Re: Prosper loan question

Calidreaming — Wed, 06 May 2015 16:13:58 GMT

That really puts my mind at ease! Thank you.

Re: Prosper loan question

Anonymous — Wed, 06 May 2015 16:47:19 GMT

@Calidreaming wrote:
That really puts my mind at ease! Thank you.

You are welcome!!!

Re: Prosper loan question

Calidreaming — Tue, 02 Jun 2015 18:54:02 GMT

Happy update! My prosper loan funded within hours of my last post. I was pleased with how quickly everything went after that. I had about $25K in credit card debt and thanks to the Prosper loan, was able to consolidate half of it at an interest rate lower than the lowest rate I could get on any of my other cards. With that money freed up, I was then able to do a 4.99%, 21 month, no fee balance transfer to my Discover Card.

As a result of this transaction, I got an immediate 21 point increase in my FICO 8 score. I got a 7 point increase just due to a balance inquiry on a Discover loan, and then another 14 points after I paid down half of my credit card balances.

We are trying to qualify for a mortgage in about 2 years, and my credit score was wrecked by a redeemed repo I had due to an auto loan I took out for a family member as well as a BS $41 medical collection. This loan will help me get my credit score to where I need it to be faster to be able to quality for a good mortgage.

I still have a ways to go in paying down debt, but at least now I am making concrete progress. Up to now, I've just been able to keep up with my monthly minimums but haven't really been able to pay down any debt. Now I can make substantial progress that I hope will snowball as time goes on. My next project after this is to get out of my expensive auto loan and into an older, reliable used vehicle. My current payment is $640 a month and hopefully with the improvement in my credit score, I will be able to sell the car and get a good rate on a used auto loan with a payment of less than $300/month that I can pay off in less than years. With the decrease in the auto payments and insurance payments, that will equal a $500 decrease in my monthly bills that I can put toward debt reduction.

I love this forum so much and all of the good advice everyone gives here. The Prosper loan program is awesome and I never would have known about it if I hadn't read about it here.

Re: Prosper loan question

Anonymous — Tue, 02 Jun 2015 19:14:29 GMT

Thanks for the update.. Good it all worked out..

Re: Prosper loan question

Anonymous — Thu, 18 Jun 2015 23:52:35 GMT

"As a result of this transaction, I got an immediate 21 point increase in my FICO 8 score. I got a 7 point increase just due to a balance inquiry on a Discover loan, and then another 14 points after I paid down half of my credit card balances."

Question for the forum: I've read over and over again that the consumer finance accounts (like one from Prosper, Lending Club, Best Egg, etc.) will cause a drop in score, so how is it an increase happened here? My husband and I have been looking at them, but not sure if a hit to our scores would be worth it...unless it was temporary...?

Re: Prosper loan question

Anonymous — Fri, 19 Jun 2015 01:28:50 GMT

@Anonymous wrote:
"As a result of this transaction, I got an immediate 21 point increase in my FICO 8 score. I got a 7 point increase just due to a balance inquiry on a Discover loan, and then another 14 points after I paid down half of my credit card balances."

Question for the forum: I've read over and over again that the consumer finance accounts (like one from Prosper, Lending Club, Best Egg, etc.) will cause a drop in score, so how is it an increase happened here? My husband and I have been looking at them, but not sure if a hit to our scores would be worth it...unless it was temporary...?

They don't necessarily cause a drop in score, that will vary by profile. But they are considered a negative factor and will show up as such in AA letters. Just got one of those myself. In the OP's case, though, the score bump was due to the drop in revolving credit utilization.

Here's my denial letter:

We also obtained your credit score from TransUnion and used it in making our credit decision. Your credit score is a number that reflects the information in your consumer report. Your credit score can change, depending on how the information in your consumer report changes.

Your credit score: 791

Date: 2015-06-17 13:33:31 -0500

Scores range from a low of 300 to a high of 850

Key factors that adversely affected your credit score: "Proportion of loan balances to loan amounts is too high,Time since most recent account opening is too short,Length of time revolving accounts have been established,Too many consumer finance company accounts,The number of inquiries on the consumer's credit file has adversely affected the credit score."

I have a Lending Club loan.

Re: Prosper loan question

DaveInAZ — Fri, 19 Jun 2015 16:30:24 GMT

@Anonymous wrote:
@Anonymous wrote:
"As a result of this transaction, I got an immediate 21 point increase in my FICO 8 score. I got a 7 point increase just due to a balance inquiry on a Discover loan, and then another 14 points after I paid down half of my credit card balances."

Question for the forum: I've read over and over again that the consumer finance accounts (like one from Prosper, Lending Club, Best Egg, etc.) will cause a drop in score, so how is it an increase happened here? My husband and I have been looking at them, but not sure if a hit to our scores would be worth it...unless it was temporary...?
They don't necessarily cause a drop in score, that will vary by profile. But they are considered a negative factor and will show up as such in AA letters. Just got one of those myself. In the OP's case, though, the score bump was due to the drop in revolving credit utilization.

Here's my denial letter:

We also obtained your credit score from TransUnion and used it in making our credit decision. Your credit score is a number that reflects the information in your consumer report. Your credit score can change, depending on how the information in your consumer report changes.

Your credit score: 791

Date: 2015-06-17 13:33:31 -0500

Scores range from a low of 300 to a high of 850
Key factors that adversely affected your credit score: "Proportion of loan balances to loan amounts is too high,Time since most recent account opening is too short,Length of time revolving accounts have been established,Too many consumer finance company accounts,The number of inquiries on the consumer's credit file has adversely affected the credit score."

I have a Lending Club loan.

Yeah, TU doesn't seem to hold Prosper/LC (aka per to peer) loans in high regard. I got a $5k Prosper loan last JUne, didn't drop my score but I saw that message in "key factors". I paid the loan off in March with a 0% BT from Barclays NFL card, enabling me to pay the BT off within the 15 months of 0% instead of the remaining 26 months on the Prosper 11% loan. So now instead "too many consumer loans" I get "loan balances too high", TU apparently bitterly disappointed that 6 months into 60 mo 1.99% car loan I haven't already paid half of it off. Like a good nagging spouse, TU is there.

Re: Prosper loan question

Anonymous — Fri, 19 Jun 2015 14:38:20 GMT

Is it always a negative factor or does it in any way depend on what the loan is for? I know most people use it to pay off debt but some use it to get a car loan.

If you have good credit you can get a pretty good interest rate. I am a lender on LC and I can see people with good credit getting cast loans at 5.33 percent.

Not convinced that should be seen as a negative.

Re: Prosper loan question

Revelate — Fri, 19 Jun 2015 15:36:31 GMT

@Anonymous wrote:
@Anonymous wrote:
"As a result of this transaction, I got an immediate 21 point increase in my FICO 8 score. I got a 7 point increase just due to a balance inquiry on a Discover loan, and then another 14 points after I paid down half of my credit card balances."

Question for the forum: I've read over and over again that the consumer finance accounts (like one from Prosper, Lending Club, Best Egg, etc.) will cause a drop in score, so how is it an increase happened here? My husband and I have been looking at them, but not sure if a hit to our scores would be worth it...unless it was temporary...?
They don't necessarily cause a drop in score, that will vary by profile. But they are considered a negative factor and will show up as such in AA letters. Just got one of those myself. In the OP's case, though, the score bump was due to the drop in revolving credit utilization.

Here's my denial letter:

We also obtained your credit score from TransUnion and used it in making our credit decision. Your credit score is a number that reflects the information in your consumer report. Your credit score can change, depending on how the information in your consumer report changes.

Your credit score: 791

Date: 2015-06-17 13:33:31 -0500

Scores range from a low of 300 to a high of 850
Key factors that adversely affected your credit score: "Proportion of loan balances to loan amounts is too high,Time since most recent account opening is too short,Length of time revolving accounts have been established,Too many consumer finance company accounts,The number of inquiries on the consumer's credit file has adversely affected the credit score."

I have a Lending Club loan.

And none of your other accounts qualify? I have that too without a Lending Club loan and it's probably my lone retail card.

Re: Prosper loan question

Anonymous — Fri, 19 Jun 2015 17:17:03 GMT

@Revelate wrote:
@Anonymous wrote:
@Anonymous wrote:
"As a result of this transaction, I got an immediate 21 point increase in my FICO 8 score. I got a 7 point increase just due to a balance inquiry on a Discover loan, and then another 14 points after I paid down half of my credit card balances."

Question for the forum: I've read over and over again that the consumer finance accounts (like one from Prosper, Lending Club, Best Egg, etc.) will cause a drop in score, so how is it an increase happened here? My husband and I have been looking at them, but not sure if a hit to our scores would be worth it...unless it was temporary...?
They don't necessarily cause a drop in score, that will vary by profile. But they are considered a negative factor and will show up as such in AA letters. Just got one of those myself. In the OP's case, though, the score bump was due to the drop in revolving credit utilization.

Here's my denial letter:

We also obtained your credit score from TransUnion and used it in making our credit decision. Your credit score is a number that reflects the information in your consumer report. Your credit score can change, depending on how the information in your consumer report changes.

Your credit score: 791

Date: 2015-06-17 13:33:31 -0500

Scores range from a low of 300 to a high of 850
Key factors that adversely affected your credit score: "Proportion of loan balances to loan amounts is too high,Time since most recent account opening is too short,Length of time revolving accounts have been established,Too many consumer finance company accounts,The number of inquiries on the consumer's credit file has adversely affected the credit score."

I have a Lending Club loan.
And none of your other accounts qualify? I have that too without a Lending Club loan and it's probably my lone retail card.

Nope, it's the only one. My other accounts are bank cards and a secured installment loan from a traditional bank. That consumer finance account note didn't show up until after the Lending Club loan hit my files.

Re: Prosper loan question

Revelate — Fri, 19 Jun 2015 22:45:01 GMT

@Anonymous wrote:
Nope, it's the only one. My other accounts are bank cards and a secured installment loan from a traditional bank. That consumer finance account note didn't show up until after the Lending Club loan hit my files.

Huh, interesting. Can you share the explicit reporting from the bureaus when you get a chance please? Not third party sanitation like we get here or at CK, interested in this one. Many thanks!

Re: Prosper loan question

Anonymous — Fri, 19 Jun 2015 23:11:03 GMT

@Revelate wrote:
@Anonymous wrote:
Nope, it's the only one. My other accounts are bank cards and a secured installment loan from a traditional bank. That consumer finance account note didn't show up until after the Lending Club loan hit my files.
Huh, interesting. Can you share the explicit reporting from the bureaus when you get a chance please? Not third party sanitation like we get here or at CK, interested in this one. Many thanks!

I would have to pony up for fresh reports since it hit after the last time I did. So, that'll have to wait until I feel the need to buy new ones.

Re: Prosper loan question

Anonymous — Sat, 20 Jun 2015 22:00:17 GMT

CAPTOOL, how long did it take for Lending Club to show up on your file after you received your funds?

Re: Prosper loan question

Anonymous — Sat, 20 Jun 2015 22:26:33 GMT

@Anonymous wrote:
CAPTOOL, how long did it take for Lending Club to show up on your file after you received your funds?

A little over two months.

Re: Prosper loan question

DaveInAZ — Sun, 21 Jun 2015 15:19:51 GMT

@Anonymous wrote:
I would have to pony up for fresh reports since it hit after the last time I did. So, that'll have to wait until I feel the need to buy new ones.

I used to see the "too many consumer loans" message in my Fico report from my Walmart card, maybe it will show up in a Fico report on one of your CCs.