Ben Todd | Jun 2, 2017 | 1
Prosper Personal Loans – Crowd Powered Loans
Prosper is a very large peer-to-peer lending and investing group. We heavily endorse peer-to-peer groups and companies in our articles because they help investors make an honest profit, and they take the lending power away from banks. The banks have screwed us all over in the most royal and blatant fashion over the last two decades, and they have gotten away with it. Lending and investing with peer-to-peer groups takes money out of the bank’s pockets, and it helps honest citizens take hold of the lending levers in our society. When customers get a Prosper Personal Loan, it is people lending to people, rather than banks lending to companies and screwing investors.
We heavily endorse peer-to-peer groups and companies in our articles because they help investors make an honest profit, and they take the lending power away from banks. The banks have screwed us all over in the most royal and blatant fashion over the last two decades, and they have gotten away with it. Lending and investing with peer-to-peer groups takes money out of the bank’s pockets, and it helps honest citizens take hold of the lending levers in our society. When customers get a Prosper Personal Loan, it is people lending to people, rather than banks lending to companies and screwing investors.
Prosper Personal Loans Are Funded By Ordinary Citizens
You have two options with the Prosper peer-to-peer lending company. You may invest money so other people may borrow it and pay you interest. Or, you may take out a loan with other people’s money and pay it back in installments with interest.
Some of the interest goes towards the Prosper company as their profit, and the rest of the interest and the repayment amount goes back to the investors. The investors get to choose the interest rate you pay back, which gives them some control, but you are also able to pick how much interest you pay.
How Are You And The Lender Able To Pick The Interest Rate
The interest rate (APR) rate is the amount of extra money you have to pay back for your loan. When you apply for a Prosper Personal loan, you will see an interest rate. You can wait to see if the rate goes up or down, or you can take the rate as it is.
The rate goes up and down because the investors ask for different amounts of interest. For example, Fred may invest $1000 and want 2.1% interest, whereas Sheila invests $4000 and wants 1.8% interest.
Shelia wants a lower interest rate because it means her money will be loaned out before Barry’s money. If there were only two people on the system, then you would be able to lend up to $4000 for with an interest rate of 1.8%, but if you wanted between $4001 and $5000, you would have to lend some of Barry’s money too, so you would have to pay a combined rate of 1.8% and 2.1%
Doing The Math On Our Simple Example
Just for the sake of it, let’s do the math. If you wanted to borrow $5000, you would have to pay a combined APR interest rate because you are borrowing from Sheila and Barry and they both have different interest rates.
1.8% of $4000 is $72
2.1$ of $1000 is $21
If there were only two people on the system, you could borrow $5000 with $93 interest.
Obviously, this is only an example. It doesn’t take into account the amount of interest that you pay to the Prosper company, nor does it take into account the length of the loan and how often the interest is paid. When you actually apply for your Prosper Personal loan, the amount you pay in interest is shown to you automatically. It may vary from one day to the next depending on the investors.
How To Use Prosper To Get A Prosper Personal Loan
Applying for a personal loan from Prosper is not particularly difficult, and if things run smoothly, you should get your money in just a few days. Visit their website to see what rate you can get, verify your identity, and get approved for your Prosper Personal loan. The rates are fairly low because Prosper has very few operating and advertising expenses when compared with banks. Prosper runs much of its service online, which saves them quite a lot of money.
Find Their Starter Page Where You Sign Up
Go to their website and find their borrowing page. Now enter how much you need, and select the purpose of your Prosper Personal loan. You must now select your credit quality. If you do not know your credit quality, then you will need to find out.
Find Out Your Credit Rating
It may seem unfair that Prosper asks you what your credit rating is on the first page of your application, but finding your credit score isn’t as difficult as it used to be. In fact, it is completely free if you sign up for Credit Sesame, Credit Karma, or use a Credit Card that offers a free credit report as part of the service.
We’ve written some articles on this:
Now You Check Your Rate
A page will appear that asks for your name, address, employment status, yearly income, date of birth, your email address and the password you wish to use with your account.
Read the small print that is on the page before you click the button that says “Get Your Rate.” They do run a check on your credit score, but it is a soft search that will not appear on your credit rating.
Have You Been Accepted For A Prosper Personal Loan?
The next page is the most amazing because usually it is an offer of a loan. It will tell you how much of a loan you qualify for, and it will show you the interest rate you have earned. It also shows you how much your monthly payments will be.
Due to the fact that this company operates as a peer-to-peer company, the rate you are offered may change from day to day. Tomorrow, you may receive a lower rate because there are more investors offering money. Your lowest loan amount will not change, but the total amount you are allowed to borrow may increase.
The acceptance page will show you a series of other loans you qualify for. There are many investors within the peer-to-peer marketplace, and they affect how much you may borrow and the rates that are attached to them. That is one of the reasons why some of the rates seem a little screwy, where one amount may have a very low interest rate, then the loan just above it has a really high rate, and the one above that has a low interest rate.
Choose Your Prosper Personal Loan And Give Your Details
Once you have chosen your loan, read the small print and move on. Prosper will ask you for more details. In the top right corner, you will see the loan you have picked, and you will see your term (loan duration), and your minimum monthly payments.
Enter your details such as your phone numbers, and further work details so that Prosper may check to see if you work where you say you do. They take your details, which they will verify and check. Once you have entered all the appropriate information, click the button to continue.
Read Your Prosper Personal Loan Terms
You probably won’t go to the trouble of reading the loan from page to page, but could you at least skim read it. Even big and trusted companies are able to hide things in the terms and conditions that mess people around and charge them extra. At the very least, have a skim through the loan terms and conditions.
You have to give an electronic signature on the loan terms document. It is just a case of putting your name at the bottom, clicking the box and the button. After you have read and accepted the terms, you have to give your bank information so that you may pay your debt from the bank, and so they may place the money in your account.
Enter Your Bank Details
Do not get any of this wrong. Check and double-check what you enter. There is nothing worse than waiting for funds that cannot arrive because you entered incorrect details. Now, you just wait a few days and the money arrives in your account so long as the information you gave was correct. You may now enjoy your peer-to-peer loan.
Check Out Your Prosper Personal Loan Account Page
Once you have been accepted, you may view your account page and see your details. You get to see a breakdown of the credit profile that they created when they did their research into you. They came up with all of this in the few seconds it took for you to get your rate, which is really quite scary.
Conclusion – The Company Offers Loans At Good Rates
Prosper doesn’t offer as much freedom to play around with rates and terms as some of the other peer-to-peer companies we have covered, but they do offer great rates and very fast decision process. If you are looking for a personal loan, especially for debt consolidation, then you should seriously consider Prosper. We have a deeper review into Prosper right here if you are interested:
We also have a few other articles that talk about peer-to-peer lending and investing. These are for people who are interested in using or investing with peer-to-peer companies. Also, if you take a look around our website, we often feature reviews of new and old P2P companies.
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