If you are credit challenged and unable to receive a loan through traditional outlets, Prosper provides a new source of help for citizens with bad credit or no credit. In recent years, there has been a new breakthrough in the world of loans, as peer to peer lending continues to grow in popularity.
Prosper loans allow people with no credit to receive a bad credit loan from a peer, as opposed to a bank and are issued over the Internet. Prosper is one of the top providers of such loans and these are the eight reasons why Prosper is the top loan source to the credit challenged.
Here are the 8 Reasons
- Ability To Receive $35,000
- Better Applications Lead To Better Results
- Closing Fees Remain Low
- Receiving Loans From Real People
- Low Interest Rates
- Loans Are Given Quickly
- Superior To Credit Cards
Prosper users are able to apply for loans that start at $2,000 and range up to $35,000, which makes for a much easier process. You will be asked a series of questions about your overall income, your age and the permanence of your employment status. Your credit score is also checked, so that the lender is able to see how rapidly your bills are paid each month or if you have defaulted on loans in the past. If approved, the money is sent straight to your bank account, with a plan in place to pay off the balance of the loan over the course of three to five years.
There are three methods for improving your Prosper application, all of which allow you to receive better results. Applicants with a higher credit score are typically able to achieve than those with lower credit ratings. Secondly, every time you apply for a new loan, an inquiry is added to your credit score, which is somewhat of a black mark. Lastly, you can ask for the exact amount that you need, which provides you with a much lower interest rate.
Prosper charges its users a very reasonable closing fee when they are taking out their loan and while it may change for certain users, it is typically set at 5 percent. 80 percent of the loans that are provided to users like you are allocated with the 5 percent closing fee attached. 20 percent of Prosper users are able to receive a loan with an even smaller closing fee of 1 to 4 percent.
Even More Reasons
Receiving a loan from Prosper means having access to real people, as opposed to banks and credit unions. Prosper loans are never funded by a bank of any kind and they are provided by people just like you, people who have a vested interest in helping others and making the world a better place. Prosper organizes these funds in a manner that makes them much more tangible to the common man. When you are paying back your loan, the money goes directly into the pockets of the person who lent it to you, in whichever state they live.
Closing fees are not the only low rate that Prosper provides, as their interest rates are among the lowest to be found on the current market. Since they are not connected to a bank of any sort, Prosper loans can distributed with interest rates that are as low as 6.7%, for those who have great credit. Even if you brought the same credit score into a bank or credit union, the best interest rate that could be provided? 8 percent! It is in your best interests to pursue a Prosper loan, especially if you are currently credit challenged.
Filling out paperwork, learning about labyrinth loan policies, going through a series of meetings with financial personnel, all of this can make for a very confusing process. Prosper aims to take the guesswork out of obtaining a loan and put much needed monies back into the hands of the people. Even if bank and credit union loans provide better rates, they also ask their clients to jump through a much more difficult series of hoops to receive a loan. Prosper loans, conversely, do not require you to leave your home. Everything is done through the computer, in a very safe manner.
When you need money quickly, the last thing that you can afford is a long, drawn out process. Even if you have great credit, obtaining a loan from your local financial institution could take at least two weeks, if not longer. The bank’s processes involving running your credit and a thorough investigation of your past history, to determine your worthiness. With Prosper, loan applicants have access to a process that is much quicker than any other reputable service is able to provide. After applying for a loan, the money can be in your account within the next business week.
People who are facing a major debt of some kind are often tempted to place it on their credit cards. After all, anyone can get a credit card, right? Credit cards are great for you to use when you have short term emergencies, but they come at the expense of your long term financial stability. Credit care interest rates are absurdly high and they come with the added danger of allowing you to take on even more debt. Prosper loans allow you to control the narrative and keep you from burying yourself even further. You know exactly when you will be out of debt and can plan accordingly.