It has been just over one year since I applied for an took a debt consolidation loan from peer-to-peer lender Prosper. One year in, I’m just as happy with Prosper as when I started.
I posted a loan request last November on Prosper to see if the lending network could get me a loan to pay off a high interest credit card balance on which I was paying 19% interest. To my delight, the loan was funded by dozens of different lenders at a 13.5% APR.
The loan term was three years, as are all Prosper loans. Today, my loan is a third paid off!
As a borrower, there’s not much to Prosper once your loan is funded and disbursed. And that’s what I love. The payments are deducted from my checking account on the first of each month, and I get monthly email statements. Basically, I don’t have to think about anything, and my loan just gets smaller!
If I were able, I could pay off the loan early at any time with no prepayment penalty. I also have the option of applying for an additional Prosper loan up to a combined total of $25,000. If I choose, I may end up consolidating the rest of my debts with Prosper down the road.
I’m a huge advocate of alternative lending, and Prosper is just one of many choices out there for alternative loans. But as a satisfied user myself, I strongly recommend them. If you haven’t already, I encourage you to learn more about Prosper now.
About David E. Weliver
I have wanted to try Prosper but I was afraid to. Your story sounds easy and I think I will get into that soon. I just need to build up a few of the monthly payments to get started. I did register as a lender and got my first loan funded.
Thanks for sharing your experience.
Now that Prosper can issue loans up to 36% in most states, many more people have access to this excellent marketplace. Prosper beats the other sites out there for the moment, but watch out for Lending Club when it comes back.
Could you please write about the latest Prosper gyrations? (Prosper is currently not generating loans.) How is the second year of the Prosper loan going?
Great idea, Larry — I just did here: http://www.moneyunder30.com/peer-to-peer-lending-hits-a-roadblock
If you have any other questions about my experience, just let me know.