Possible Loan from Prosper/Lending Tree

[donkort]

Hello everybody,

How would obtaining a loan from "peer-to-peer" entities like Prosper and Lending Tree affect the FICO score--aside from the effects of obtaining the loan itself?

Thanks for any responses. 

[smallfry]

I would avoid Prosper. It would be considered a high risk loan and would not look good on a manual review.

[Anonymous]

Lending Tree is not a peer-to-peer network. They're a lead generation service for the salesmen of the various segments they lend money in. That means they make their money by selling your application info to finance companies, mortgage brokers etc.

[donkort]

Would a loan from Lending Tree adversely affect my FICO score, aside from the usual effects of a new account and an inquiry?

Thanks again for the feedback.

[Jazzzy]

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@donkort wrote:

Would a loan from Lending Tree adversely affect my FICO score, aside from the usual effects of a new account and an inquiry?

Thanks again for the feedback.

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Hi donkort...would you be getting a loan "from" Lending Tree? Aren't they a network that sends your app out to various lenders? Your actual loan would be from a lender, wouldn't it?

What type of loan would it be?

[donkort]

Thanks for the response.

I own a co-op--but I want an unsecured, debt-consolidation-type loan.

[Jazzzy]

Have you looked into doing that at a credit union? That way it won't be a consumer finance account.

[donkort]

Yes, I have.  I was told by the receptionist at the Municipal Credit Union that a 720 FICO is required, which scared me.  However, subsequently, upon reflection, I began to suspect that the 720 would be required to obtain the best interest rate, rather than a requirement to obtain the loan itself.   My scores are 673 TU, 684 EQ (per MyFICO) and 693 EX ("PLUS" score).   My credit card utilization is way, way high.   I have a $50, paid medical collection on TU,; 2 6-year-old 30-day lates,  and one 6-year-old  60-day late on all 3 bureaus.

I'm a member of the Municipal Credit Union.  Hopefully, in a couple of weeks, I could speak to a loan specialist. 

[blacklotus]

If your credit utilization is high think of what your scores would be if you paid them down.

[donkort]

Indeed, you're right!  I wish I had the money to pay off the credit cards.  Being in debt is no fun.