There used to be several ways to be able to get a loan. Now, with the credit crunch it has become considerably harder. For example, if you are in the market for a new or used car or just want to reduce your monthly payments on your car, there are a couple of different ways that you can get financing. Most people opt for the traditional route of securing the loan with the car and going to the bank or a dealership for the financing. While this can work well, there may be times when you prefer to have an unsecured fixed rate loan instead. This changes the whole face of a loan and can make it difficult to get an approval. Dealers for example, will not offer this type of loan and a bank will usually need to have the loan at least partially secured.

A new trend has emerged in banking thanks in a large part to the housing crisis. Right now, getting an unsecured loan is almost impossible, even if you have great credit. Even if you do get a loan, the interest rates are continuing their upward climb and it can be very hard to get a decent low rate for a loan. This translates into spending a lot more money every month and over the course of the entire loan.

One of the better ways to get an unsecured fixed rate loan is through a Peer to Peer Lender. There are many different ways to do this, but one of the easiest ways is using Prosper.com. This is a p2p lending community that is available in the United States. It is made up of lenders from across the country, and good, credit worthy borrowers who are looking for financing. If you wanted to look into paying off an existing car loan with a personal loan from Prosper, the process would be very simple.

First, you would need to create an account on the site. They screen for credit ratings, so you will need to provide a valid social security number for your account. While all credit ratings may be eligible, it is best to have a very good rating before joining. If your credit could use a little help, you may want to work on raising your score before you join.

Once you are a member, you can post a listing for your unsecured personal loan for your car or any need you may have. You can state how much interest you are willing to pay – its best to start higher so that the Lenders may bid the rate down - and how much you need (maximum of $25,000). The basic terms are three years, fixed rate loans. Once your listing is posted, lenders from the Prosper community will be able to bid on it. They may meet your interest rate or they may even undercut it.

Commonly, more than one lender will bid on a loan request. This allows the community to share the risk and makes it easier to get an unsecured personal loan for the borrower. Once enough lenders have bid on the loan and it is fully funded, the borrower will be able to get their loan. The whole process is streamlined and it is easy to complete.

Photo Credit: 1

This week has been interesting to say the least…  I am very much looking to see what the future will hold.  I hope you had a great week as well…

Financial Blogosphere…

Loan Chimp thinks Portfolio Plans are Growing Up

Lending Stats blog on Privatizing risk, socializing losses

Cash Money Life offers this guide on How to Become A Millionaire

Rich Credit Debt Loan reviews the phenomenal book by chess prodigy Josh Waitzkin: The Art of Learning (He was the boy on which the book and movie Searching for Bobby Fisher were based.)

Practically, The Digerati Life offers 15 Fire Safety Tips To Protect Your Home

brip blap says that work-life balance is a false choice

Lazy Man and Money reviewed Free Credit Scores from Credit Karma

Living Off Dividends says Help! I’m Losing My Home To Foreclosure (on his landlord)

Wealth Boy explores Why Drilling Offshore is a Bad Idea

Fishing Blogs

The weather outside is beautiful why are you indoors? 

You should be out fishing like I am a Bass Fisherman… maybe even catch a whopper (or simply relive a past catch) and get paid for your fish story.  Shanan Rosenberg entered the Russian River Steelhead…

 

Golf Blogs

Maybe golf is your thing. Average Golfer, like the rest of the golf blogs, is talking about the phenomenal Greg Norman and Padraig Harrington in Harrington Filets Shark.  Before heading out for a competitive round be sure to follow these 3 Tips for Getting Mentally Prepared to Play Golf.

Fitness and Health Blogs

Perhaps you are into fitness and exercise. Fit Bloggers has it covered, whether the 100 push up challenge or actually doing the 100 push ups.  If you can’t get into the gym here are 8 Easy Ways to Exercise Throughout the Day. For a little humor check out Decrease your Likelihood of Being Hit By a Meteor.

DIY Blog

If all forms of leisure fail, you can always rely on DIY projects…  Here are a few from the Handy Man: Installing Walkway Pavers, How to Make a Mosaic Tile Countertop, or even simply Choosing a New Flooring.

Want to be a part of this round up in the future? It is easy… leave a relevant blog comment and/or link to a Prosper blog post in a relevant way from your own blog. Then, when I stop by your blog to see who you are, be sure to have fresh content as most of the posts that will be highlighted here will have been published in the last week.

Plus blogs that send trackbacks that are approved will be featured in the sidebar while their trackback remains one of the last 5 received.

While this will not guarantee that you will be included it will certainly get my attention… The blogs featured here already have my attention. Will you be next?

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RateLadder is a Prosper lender and has been since July, 2006. He has a passion for p2p lending. He owns RateLadder — My Prosper.com Journey and other P2P Lending Adventures, P2P No Bank the P2P Blog Aggregate, and ProProsper — Professional Tools for Prosper Lenders featuring SQL access to Prosper data.

Market Commentary By Prosper Co-founder and Chief Executive Officer, Chris Larsen

In June, two very interesting independent academic studies were released. The first study by Economists Ginger Zhe Jin and Seth Freedman of the University of Maryland looks at Prosper’s market since inception to determine average returns and other interesting conclusions about the market.

Another study led by Paul Dholakia at Rice University finds that decisions made by Prosper lenders are much less likely to be influenced by race or gender and “strong evidence for the democratization of lending practices in P2P loan auctions.” The study also cites that bidders on Prosper:

As we have previously stated, one of our primary objectives in making Prosper market data fully transparent and freely available via an API is to allow and encourage anyone to study the Prosper market and consumer credit markets in general. We deeply appreciate the level of diligence and analysis so many have contributed using Prosper’s marketplace data. We are also very encouraged that an increasing number of academics, economists and professional credit analysts have taken the time to conduct deep studies of the market and share their conclusions publicly.

Definitions

Since Inception: November 1, 2005 through June 30, 2008. Prosper’s by invitation only “friends and family” launch began on November 1, 2005 and Prosper launched to the general public on February 13, 2006.

2008 Year-to-Date: January 1, 2008 through June 30, 2008.

2007 Year-to-Date: January 1, 2007 through June 30, 2007.

Prosper Select Index: The Prosper Select Index return is the estimated average annual return on principal, based on actual delinquency performance to date. The Prosper Select Index includes AA - E credit grade loans for borrowers whose credit reports at the time of application indicated zero current delinquencies, three or fewer credit inquiries, and a debt-to-income ratio of 40 percent or less. The annual return period reflects loans originated in the twelve month period ending one month prior to the observation date of June 30, 2008. Prime Select includes AA and A credit grade loans (credit scores of 720+). Near Prime Select includes B, C, D credit grade loans (credit scores between 600 and 719). Sub Prime Select includes E credit grade loans (credit scores between 560 and 599).

Average Borrower Rates: Average Borrower Rates are the weighted average borrower rates on Prosper Select Index loans with loan amounts between $5,000 and $10,000. Rates shown are interest rates, not annual percentage rates.

Mix of Funded Borrowers: Prime includes all AA and A credit grade loans (credit scores of 720+). Near Prime includes all B, C, D credit grade loans (credit scores between 600 and 719). Sub Prime includes all E and HR credit grade loans (credit scores below 600).

¹ Rick L. Andrews, Utpal (Paul) Dholakia, Michal Herzenstein, Evgeny Lyandres (2008), “The Democratization of Personal Consumer Loans? Determinants of Success in Online Peer-to-Peer Loan Auctions,” 31

Greetings from lender services! At Prosper I assist our lenders with everything from getting started on Prosper to full account reviews. Everyday we help a whole new group of lenders, each day is different. Some lenders are very methodical, looking at all the previous listings and using the Q&A extensively. Other lenders like to help people in need; social lending at its best. Hearing from all our lenders on what has worked for them, what hasn’t, I have no shortage of stories and experiences to share.

My lending strategy is focused on the social lending aspect, though I closely analyze the credit data for risk. I’m not a large lender, and that allows me to find loans that I have a certain connection with. This may be to help a recent UC Davis graduate to get on her feet, I can relate with the financial burdens students face during and after college. I’ve shared interests with my borrowers, some want a new boat, others want to start their own skateboard company. I enjoy helping people get a loan when we share a common interest, even though I will never meet the borrower. That’s what makes lending on Prosper fun for me, and why searching through pages of listings can be so rewarding.

Being a Pittsburgh Steelers fan, I recently helped fund a loan for a new fight song compact disk. Most of my borrowers have mid-prime credit with currently no delinquent accounts, and a low number of recent inquires. I like helping real people through Prosper, that’s the enjoyable part for me.

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Cameron Fleischer is a Lending Account Manager at Prosper

It seems that most of California is on fire. While the smoke in my part of the Bay area has subsided some what, several friends from other parts of the state have reported very poor air quality. 

We appreciate all the hard work put in by the firefighters and their support.  Our thoughts and prayers go out to all affected by the fire.

For this week roundup I thought I might focus on wealth building…

The Digerati Life had a post Remodel Your Bathroom! Try 3 New Ideas To Freshen Up Your Bathroom.  Remodelling your bathroom can add significant value to your home.

Lazy Man and Money features Credit Cards as a Money Tool and following up on that theme Finance Puzzle says Credit Card Reward Points adds to my net worth.

Cash Money Life had The Remarkable Approach To Your Finances

Rich Credit Debt Loan offers 4 Ideas to Create Multiple Income Streams Online (including p2p lending as one of the ideas)

brip blap has 4 steps to building wealth quick (and he doesn’t belive in capitalization

Dough Roller asks Do you change your investment strategy in a falling market?

And finally for your entertainment…

Want to be a part of this round up in the future? It is easy… leave a relevant blog comment and/or link to a Prosper blog post in a relevant way from your own blog. Then, when I stop by your blog to see who you are, be sure to have fresh content as most of the posts that will be highlighted here will have been published in the last week.

Plus blogs that send trackbacks that are approved will be featured in the sidebar while their trackback remains one of the last 5 received.

While this will not guarantee that you will be included it will certainly get my attention… The blogs featured here already have my attention. Will you be next?

—