@Revelate wrote:
@Anonymous wrote:
@Anonymous wrote:
How does it report? Consumer Finance loan? Does it say lendind club or prosper? Do existing lenders who Sp reports see this type of loan and think that the consumer is in trouble?
Yes, they report as consumer finance accounts and, yes, they are viewed negatively.
If you're using the LC/Prosper loan for good reasons (like refinancing ~20% CC debt down to <10% Installment debt), I'd take the consumer finance hit personally. Many / most people on this forum already have with their retail cards, my solitary Walmart card which I picked up a couple of years ago before I could get a FICO from a bunch of different places, dings me on this according to some model's "reasons my score ain't higher."
Oh well, can't win everything credit wise and it's not like it's what's depressing my score by any significant amount.
Yeppers.
As with anything in life, it's a matter of weighing the pros and cons and figuring out iif the pros outweigh the cons. For me, any negative hit was worth being able to pay off my state tax lien and start the aging clock (well, I suppose not ANY negative hit would have been worth it) instead of paying monthly on the debt itself and then starting the aging clock 2, 3 (more?) years down the road. Traditional financing wasn't an option at the time (qualifying with my profile was a long shot, and I didn't want to waste an HP without it being as close to sure as possible since I was going to be apping for apartments shortly after.)
FWIW, I didn't see a score dip from this loan, but I also imagine the impact is greater the better your credit is. This loan will be paid off before the lien reporting falls off, so I'm not worried about the reporting of this type of loan suppressing my score (unless I somehow manage to have the lien completely withdrawn - I haven't given up on that yet!) Even then, I'll still have a couple other blemishes that will still be holding my scores back from super primo territory, so not taking this loan on the basis of a possible "negative" reporting aspect was, for me, silly, based on the benefits and how it would eventually position me.
And, even OP's original question has been addressed, I can confirm that for Prosper, it's soft for rates/pre-qual, hard once loan is actually funded (ie, you find enough investors to lend the money.) My loan (for $4,000) was fully funded in 20 minutes after listing. I would have enjoyed Lending Club for SP's across the board, but I didn't qualify.
Starting Score: 472
