My Prosper Group is proud to present our 3rd listing (2nd endorsed listing)… This listing is attempting to put the social in social capital.
The Penny Saved has been a known blogroll buddy of RateLadder for sometime. He asked me about this loan strategy about 2 months ago. This is a calculated decision on his part.
He is a computer programmer, owns a rental property, and independently runs the personal finance blog The Penney Saved.
The loan will be used to raise his credit score so that he and his fiance can build a house… Reducing his revolving credit card debt by transferring the revolving debt to an installment loan will improve his credit score. Specifically, it will reduce his high revolving debt balance percentage (79% in the Prosper listing.) He is also considering these credit card recommendations to increase his revolving credit availability, also improving hi open ratio.
His listing does a great job of laying out the financial reasoning behind the loan…
Unfortunately for him his inquires in the last 6 months are 3. This places him in an very unfavorable loan slice… This does not affect my belief that The Penny Saved will repay this debt.
I will be bid $105.66 @ 1% (all available cash at the moment… I will add another bid at the end of the listing with all additional funds available at the time.)
Here is what prosper says about that slice…
Minimum bid rate (chosen by borrower): 16.00%
Estimated loss1: -16.49%
Adjustment2: -1.26%
Servicing fee: -1.00%
Estimated return3: -2.75%
Here is the listing.
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8 comments ↓
Thanks for the post and bids, hopefully we get this thing funded!
God luck Jesse. I just bid on your loan.
wait a second.
I haven’t looked any more into the slice besides what you posted, but why would the minimum bid rate on a slice be less than the estimated loss?
That doesn’t make any sense.
Where are you getting your numbers?
The borrower chooses the starting rate… In this case the borrower does not feel that it makes sense to get the loan at a higher rate and therefore set 16%…
If a second listing is required to reach funding the starting rate will be at Prosper suggested starting rate. If this listing is funded the borrower will take the loan.
TripleOptIn just put $1,000 towards the loan.
@RL
ahh, gotcha. I was a little thrown off by the “minimum bid rate” phrase. I shoulda looked at the listing first…
[...] here? You may want to subscribe to the RSS feed or browse the site map. Thanks!Rate Ladder is promoting a P2P loan from the blogger “The Penny [...]
Looks interesting. I will probably support this loan on RateLadder’s recommendation alone. Interest rate is a little low for the credit score, but the “social capital” should reduce the risk (in theory). Here’s to hoping that hypothesis is correct. Good luck, Jesse. And keep blogging!
P2P-Loans.com
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