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Lenders on Prosper.com look for loan requests that they think have the highest reward (your interest rate) and the lowest risk (your ability to pay back the loan).
All that they have to rely on is your credit score and your loan request description. Below are some tips for creating
a loan request that is optimized for getting you the best chance of getting your loan request funded.
Create a Good Description
You must think of your description as a sales presentation. You are selling potential
lenders on your ability to pay back the loan.
Use proper grammer and spelling. You want to present yourself
as careful and intelligent. Poor spelling and grammer will convey the opposite.
Carefully explain what you intend to use the money for. If you are using it to fund a
new business, explain your business and where this money will go.
If you have a low credit score or blemishes in your credit report, explain them. We all make mistakes, you need to show lenders that you will not
make those mistakes again.
If possible, use pictures. Use pictures to further explain what you are borrowing the money for. If you need the money to finish renovating your place of business,
show some pictures of your business to give lenders a better idea of how their money is being used.
Ask for help with your description!! We are always willing to provide you with feedback on your description. Send us a copy of your description using
the contact form, and we will get back to you ASAP with any suggestions we have on improving it.
Choose a Realistic Interest Rate
Since Prosper.com is new and growing, it is hard to define solid guidlines for interest rates.
You can get a good idea of what rate you will need to set to get your request funded by browsing other requests on Prosper.com
from users with similar credit scores and loan amounts. Below are some very basic tips on setting your interest rate.
The higher your credit score, the lower you can set your interest rate. A AA credit score should have a minimum interest rate of
around 8% for a fair chance of getting funded, and a HR credit score will need to be at 20% or above to get funded.
The greater the amount of your loan request, the more bids it will need to get funded. Therefore, if you require a larger loan, you will need to
set a slightly higher interest rate to entice more lenders to bid on your loan.
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