Prosper Loans go to 36% Nationwide
RateLadder reported that Prosper is going now covering the whole country - minus Texas and South Dakota - with the ability to fund a loan at a rate of up to 36%. This is great news for those of us who were restricted in some states, which had interest rate ceilings. For instance, in Virginia there was a 12% interest cap. This made it difficult, if not impossible, to fund a sizable loan. There are a bunch of other new items of interest that will impact all members of Prosper - check out this blog post on the Prosper blog - Thanks Prosper!
All you Prosper Gurus out there - I want to try for a Prosper loan. Okay, so I have credit card debt I want to consolidate. I would like to go for $25,000. Should I set the interest rate at 36% and let the market bid it down using the auction? I just checked my credit via Prosper and I am sitting at a “B”. What would a good strategy be?
RateLadder wrote about a $25,000 loan funding at 22% — C Credit — DTI 28%. I am a B Credit with about 20%-25% DTI. What do you think? Can I make it happen for around 20%? I like the idea of letting the market adjust the rate to the most appropriate level.
I think you have a solid chance of getting a loan now that rate caps have been eliminated. Especially since you have improved your credit grade from a C to a B.
If you request a smaller loan you will get a better interest rate. If it is important that you get the full $25K I would set the rate at the max possible and let the market bid it down.
Right now C grade loans are are going for 19.10% when the dollar amount is above $10K. At $25K the rates are going to be a bit higher than that.
Let me know when you put your loan request up and I’ll put in $50.
When you go through the listing process Prosper will suggest a rate that will have teh best chance of funding… Accept Prosper’s suggestion.