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I just got a Prosper loan for $8.500 at 10,9%. How do they report. I have herd that they report in a negative way. Is that true?
For scoring purposes it is considered a Finance Company
Nope.
i have one with them almost paid off for 10000.00 me they report every month it will help your score it won'taffect your utilization it's almost like a car loan
A few of the bureaus show a finance company account as a negative.
However, if you had $8,500 of credit card debt with a credit line of $10,000 and obtained a personal loan to payoff the credit card, your score would likely really get a good increase. The FICO models score debt differently, even though you still owe $8,500, your credit card utilization is very low now. Installment debt is not scored so heavily.
Hopefully that makes sense.
@corymcd88 wrote:
What is a Finance Company in Prosper terms? Will it be bad on my reports?
Do you mean it reports as an installment loan? Sorry, just confused by "finance company" term
@corymcd88 wrote:
What is a Finance Company in Prosper terms? Will it be bad on my reports?
Some FICO versions don't like them.
Agreed, at least one bureau will count a finance company loan in the list of negative items on a report.
But, it has only helped my score.
@Anonymous wrote:
@corymcd88 wrote:
What is a Finance Company in Prosper terms? Will it be bad on my reports?Some FICO versions don't like them.
Transunion doessn't like them. When I had a Prosper loan I'd always see "too many consumer loans" in the factors holding down my score on FICOs based on TU (only had the 1 loan). But I don't recall any significant bounce when I paid it off.