Having a low credit score can be stressful in many ways, one of which are loan denials no matter what you do to try and get it better. This is actually pretty common in our society, especially since the United States went through financial crises not too long ago. If this sounds like something you are going through no worries. I have found a place where people like you and me team together in one community of lenders and borrowers. These are not institutions like banks or credit unions, but rather normal people. This community is known as Prosper, “The Loans Marketplace.”

When I first came across Prosper I thought it was too good to be true. Normal people lending money to others that are in need? But, it is true, very true indeed. In fact, I have received two loans through Prosper. It wasn’t a bank or credit union that approved my loan; it was a multitude of several private lenders that placed money bids on my loan request posting. Once I received enough bids, Prosper reviewed and paid my loan through electronic funds transfer directly to my bank account.

When people think about receiving money via the internet they may immediately relate this to pay day loans that charge an extremely high interest rate on your loan. I have good news; this is not a pay day loan and is nothing in relation to a pay day loan. In fact, their annual interest rates are capped out at 35%. Best of all you get to set how high your interest rate will be. Let me explain to you how the process works for lenders and borrowers.

Prosper Borrowing

As a borrower myself I went out on the internet looking for legit loan agencies that didn’t charge extremely high interest rates. After thorough research I found Prosper and immediately new this was the place for me. If you are looking for an unsecured loan then this is the place for you where you can person-to-person lending without the hyped attitude of banks and credit unions. You can place a listing for auto & vehicle loans, business loans, debt consolidation loans, friends & family loans, home improvement loans, military loans, student & school loans, baby & adoption loans, green loans, engagement ring loans, and wedding loans.

All you have to do is create a listing where you put the amount you are requesting and set your interest rate. As soon as you complete your listing your auction starts immediately and lenders/investors start placing bids on your auction. The best part of all is the fact that as lenders compete on your listing the lower your interest rate will fall. As soon as your listing has been fully funded your funds will be directly deposited into your bank account. In addition, you don’t have to worry about payments, because Prosper will directly withdraw your low monthly payment from your account.

Prosper Lending

Prosper lenders consider themselves and are known as investors on prosper. Not loan companies, banks, or credit unions but investors. As an investor on Prosper they have three choices with regards to investing in individual Americans. First, an investor can choose to be in a portfolio plan. Investing in a portfolio plan on Prosper automatically places bids on borrower postings based on risk levels that the investor chooses. A lower risk portfolio brings approximately an 8% return on your bid (investment). A moderate risk portfolio brings approximately a 12% return and a high risk portfolio brings approximately a 14% return. The portfolio plan allows the investor to create a profile with their specific interests and their money will automatically be placed.

Second, an investor can choose to place bids on individual loans. This allows the investor to look through all the open borrower postings and place bids one-by-one based on what they fell appropriate. This plan allows the lender to invest like a banker as they evaluate each borrower before placing their bid(s).

Third, an investor can choose to invest in existing notes where they can buy or trade bids with other lenders. This type of investing on Prosper increases liquidity, allows for shorter term notes for quicker money, and allows the investor to purchase better notes that they may have missed out on the first time around.

Ultimately, this is the new way of investing while in a down economy. Prosper investors have numerous benefits and potentially less risk than investing out on the market.

It is easy to borrow through Prosper and obtain the loan for the amount you want at the interest rate that suits you. This isn’t a bank or a credit union, but people helping other people just like me and you. What are you waiting for go to Prosper and get the loan you want for the interest rate you choose.