I recently had the pleasure of interacting with a borrower seeking a loan on Prosper. The borrower as E credit and 15% debt to income ratio and is a homeowner…  He has 4 endorsements (3 from bidders including the group leader). However, he has an E credit grade.  But I am totally serious when I say that is is the cleanest extended credit I have ever seen on an E credit grade.

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Here is the loan description:

Hello and Thank You for considering my loan request!

Despite great support from a wonderful group of lenders, my last loan listing did not get filled. I am relisting my loan at a smaller amount with hope that this time it will be successful. My goal is rather than pay off all of my son’s medical bills at once, I will use this loan to pay off the one with the highest interest rate and monthly payment and then use the money we will be saving to pay down the remaining bill.

Currently, I have a terrific career as a Computer Software Account Manager working with an insurance software developer based in New Berlin, Wisconsin. I also have great health insurance so my entire family is now fully covered. I attended the University of Phoenix located in Brookfield, WI where I received my BA degree in Business Administration.

My wife works part-time, and will be taking a maternity leave with the birth of our second son. My job currently pays all of our expenses; I will also be starting a second job soon to bring in additional income, primarily to replenish our savings and offset her maternity leave.

Due to our young son’s health problems 2006 and 2007 were difficult years for our family. He required extensive hospitalization for up to three months at a time at Children’s Hospital in Milwaukee, Wisconsin for what the doctors believe was tracheal malasia. This culminated in enormous medical bills for our family. While we have made headway in eliminating the majority of these bills, we are looking for a loan to eliminate that debt while giving us a realistic, short-term way to pay it off.

If I am fortunate to be funded through Prosper, the money will be used to wipe out the highest remaining hospital bill. Although we had good health insurance at the time there was a $100,000 maximum which my son’s hospitalization greatly exceeded. Because of my salary, we did not qualify for any financial assistance with the medical bills and have struggled to pay back the debt. I have already paid almost $40,000 of these hospital and doctors’ bills, but our savings has been completely sapped.

My credit rating has dropped from a “C” to an “E” since I last applied for a loan due to applying for two personal bank loans. I decided not to go that route due to the high interest rate. We have also incurred slightly more credit card debt due to the holidays and some minor home repairs. These are at 0% interest, and I have a solid plan to pay this debt off by April, from a combination of my bonuses and our tax return, in addition to regular payments. Please note that my DTI is still very good, and I have more than enough to pay my Prosper loan on time, through automatic bank withdrawals, each month. We have no delinquencies and are current with all payments.

Monthly Net Income: I earn a base salary of $52,000 a year and quarterly bonuses of minimum $1,000, which comes out to be $3,087/mo. net. My wife makes an additional $731/mo. net for a combined total of $3,818.00 monthly.

Monthly Expenses BEFORE PROSPER Loan: $ 2,875
Housing: $ 1,200
Insurance: $ 80
Car expenses (including gas): $ 300
Utilities: $ 145
Phone, cable, internet: $ 100
Food, entertainment: $ 400
Clothing, household expenses $ 100
Credit cards and other loans: $ 150
Other expenses: $400 (medical bills that would be wiped out with the Prosper Loan)
Monthly Expenses AFTER PROSPER Loan: $2,650

I have always considered myself to be a man of honesty and integrity and would never default on this loan. I will make sure this loan is repaid on time each month through automatic withdrawals from my bank account.

Thank you for your assistance; I greatly appreciate it.

Do you think this is a good loan?  Why or why not?  Leave a comment. 

If I get 2/3 of the vote for (with at least 10 votes) I will bid on this E loan myself (I will bid a low enough rate to garentee being on the loan: 1%).  This would be my second E Loan ever.

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