The Concept of Prosper Marketplace

When I first discovered Prosper I was very excited about the concept of the way this peer to peer lending worked. It was a concept that I had thought of myself in the past but I did not really think that it would ever work. Peer to peer lending sites like Prosper have surely proven me wrong as they have become very successful businesses. Why wouldn't they? These P2P lending sites benefit the borrower as the APR rate will be much lower than if they got a loan from a traditional bank. They also benefit investors who want to play bank and loan their money out to people and earn a higher return on their money than they would with traditional banks. Prosper of course earns their money to make their business run smoothly. It's a win-win situation for everybody!



Importance of spelling and grammar

When you make a listing for Prosper Marketplace you must write a listing explaining why you need the loan. This listing is one of the things that lenders can see and in my opinion is the actually the most important thing that lenders will see.

In your listing you are going to want to write a detailed explanation about what you need the loan for. You are pretty much going to have to sell yourself. Remember that there are lots of loan request that these lenders see and you will have to convince them that they should loan their money to you.

When writing your listing be sure to spell correctly and use paragraphs. I know that this may seem like it does not matter much but the way that you write in your listing gives the lenders a first impression of you and of course you will always want that first impression to be a good one. Think about it, if you saw a listing with bad grammar and misspelled words what would your first impression be? You would probably think it was some uneducated and unemployed person who is just looking for a few bucks with no intention on paying it back. Of course this may not be true of that person but it is an impression that some lenders may get. Just do your best with your grammar and spelling, if you misspell a few words I do not think that is really going to affect anything but you would be surprised how bad some listings are. You do not have to be a grammar or spelling expert because God knows I'm not and I have taken out three loans from Prosper in the past. If your grammar or spelling are not great and you are worried about it then just have someone you know help you write your listing.

Information that should be included in your listing

Let the lenders know what you need the loan for:

Do you need the money to get a new car? Are you starting a new business or growing your business? Do you need to pay off some medical bills? Getting married? There are so many different reasons that folks need loans and lenders know this but will still want to know why YOU need the loan. Some borrowers on Prosper borrow money from Prosper to pay off their debt such as credit card balances they may carry. Why would they do this? Because the interest rate that they will get their Prosper loan at will be much lower than their credit card interest rates so they will end up saving lots of money in the long run. Some borrowers have even borrowed money on Prosper just to reinvest in back into Prosper as a lender to other borrowers. The point here is to just be honest with your potential lenders and explain to them why you need the loan.

Explain to lenders how you are going to repay the loan:

Prosper lenders are loaning you their money and will want to make sure that you can afford to repay the loan back. Ease their minds by giving details on how you plan to repay the loan. A good idea that some borrowers do when making their listing is to include a monthly budget summary that shows all of your monthly incomes and expenses. This will show the lenders that you have enough money left over to easily repay them every month. If you have more than one income don't hesitate to include it. As far as expenses are concerned you will want to list things such as monthly rent or mortgage, utility bills, credit card bills, food, ect.

Explain to lenders about any bad marks you may have in your credit report:

If you have some bad things in your credit report, you will want to explain the situation in your listing. Lenders can see these bad things and it is better if they see an explanation on the matter in your listing instead of you not mentioning it and just ignoring it.

Answer all question that lenders ask you

Lenders will sometimes want to ask you questions before lending you their money. Be sure that you answer all questions that come your way, do not ignore the lenders. Just because they are asking you a question does not mean that they do not trust you. They just want to make sure that you are a good candidate for them to loan money to. Again, just be honest with the lenders and you should have no problems. In my experience it seems like every lender who ever asked me a question ended up loaning me money.

Join a group

There is something on Prosper that is called "Groups."Prosper members can apply to join these groups if they wish and get familiar with other members of the groups that they join. Lots of these groups are only open to certain members that meet a certain criteria. For example, a group may be open only to California residence. Another may only be open to those who work in the medical field, and so on. Most groups though are open to everyone! Being a member of a group can help one to get a Prosper loan as lenders may see that you are in a group that they are familiar with. Other members in your group may sometimes also be helpful and loan you money. This can be very helpful as I have noticed that once a couple lenders start lending you money others will follow them. This of course if from my own personal experience. Please note that you do not need to join any group to get a Prosper loan. I have never joined a group but I do see the benefits that it could have when trying to get a loan funded.

In closing

I have taken out three Prosper loans and have had to make four listings to do it. The very first listing that I ever made on Prosper did not get funded. It was a big disappoint to me as I would log in to my Prosper account every day to see if any lenders invested in me but there was nothing until the last day when my listing was going to expire. Three different lenders had loaned me $50 but of course it was to little to late.  This got me excited though and I made the listing again without changing much. The first day there was a lender who had loaned me $400! Three more days had passed and I was still at $400.  This lender was very nice and we started communicating. This lender gave me some tips about my listing and told me what I should change and I did as I was told. The next thing I knew my loan was fully funded a couple of days later! I gratefully thanked this lender when all was done but never got a reply back, I'm sure they got my email and knew how thankful I was. Ever since then I have not had any problem getting a Prosper loan funded and by following the easy tips listed above you should not have a problem either. Good luck on getting your Prosper loan!