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Prosper loan

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Valued Contributor

Prosper loan

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?

Message 1 of 14
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Regular Contributor

Re: Prosper loan

For scoring purposes it is considered a Finance Company

Message 2 of 14
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Valued Contributor

Re: Prosper loan

What is a Finance Company in Prosper terms? Will it be bad on my reports?
Message 3 of 14
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Valued Member

Re: Prosper loan

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 

Message 4 of 14
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Valued Contributor

Re: Prosper 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.

Message 5 of 14
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Valued Contributor

Re: Prosper loan

Thanks.
Message 6 of 14
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Super Contributor

Re: Prosper loan


@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

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Message 7 of 14
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Senior Contributor

Re: Prosper loan


@corymcd88 wrote:
What is a Finance Company in Prosper terms? Will it be bad on my reports?

Some FICO versions don't like them.

Message 8 of 14
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Valued Contributor

Re: Prosper loan

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.

Message 9 of 14
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Senior Contributor

Re: Prosper loan


@donny10 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.


Fico 08: 734/716/734 TU/EX/EQ
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