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Can Prosper Do Better Than My Credit Cards?

Earlier today I requested a Prosper loan to see if it could save me some interest on my remaining high interest credit card debt. If you’re a lender, please review my Prosper listing!


Earlier today I requested a Prosper loan to see if it could save me some interest on my remaining high interest credit card debt. If you’re a lender, please review my Prosper listing!

I love the idea behind Prosper but didn’t think a Prosper loan could help me with my credit card debt until I gave up trying to get my last credit card to lower my ridiculous 19% APR. So I’m seeing if I can get a loan for the $11,500 balance of that card (the last of my bad debt!) for 16% or less.

It seems a handful of borrowers in my credit range (B) have gotten loans for $10k or more funded below 18%, though I realize the numbers are small. I thought my listing would look better because Prosper initially calculated my debt-to-income at 20% but the listing displays 30%. I assume it includes the new loan when calculating your DTI. Since this loan is for debt consolidation, however, my DTI will return to about 20% once the consolidation is complete.

Update: I ended up getting this loan with Prosper at about 11 percent—a good seven percent lower than my credit card. And the loan is now paid off! I cannot recommend peer-to-peer and Prosper enough! Check out Prosper if you need a personal loan to consolidate credit card debt or for any other reason.

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About David Weliver

David Weliver is the founding editor of Money Under 30. He's a cited authority on personal finance and the unique money issues we face during our first two decades as adults. He lives in Maine with his wife and two children.

Comments

  1. It may be worth considering getting a smaller loan. I haven’t done a lot of research, but I think fewer loans over 10K fund and generally they carry a little extra percentage.

    I may be looking to bid, but most people wait until the last day or two so that they don’t have their money tied up missing better options as they come along.

  2. Too bad my Prosper account is under $50 right now – I would like to support PF bloggers. A couple of tips for you though, since I am a Prosper lender;
    1) Consider joining a group. You should only join a group where 100% of the rewards are shared, but there are many groups like that, and it adds a sense of security to the listing and should give you at least one additional bid (your group leader).
    2) Consider posting a general monthly budget. As a PF blogger, I assume you have one, and I really like the ads where the individual has a clear idea of income and expense streams. You give a taste of it in your statement about having $200 left over, but a budget is much more powerful.
    Hope this helps.

  3. Before I found your site I debated your loan for a while, but didn’t bid on it. Found the link to your blog through pfblogs–you’re already funded but I put a bid in. You have some solid advice on your blog.

    Good luck.

  4. How about a write-up on your prosper experience so far? Would love to hear about it.