I have had several bloggers ask for advice on their listings or potential listings… One of them even joined my group and successfully received a $25K loan at an interest rate he was happy with…
As a blogger, the reputation of your blog has meaning for you both in terms of your persona, but also in real financial terms… I have said privately, that I would lend to any blogger of 1 year duration or longer that placed their blog reputation on the line in the listing…
My offer to any blogger that has asked has been the same… Write a listing and mention your blog and URL and I will endorse and bid on your listing and offer all the tips and assistance I know how to provide in order to get your loan funded and the rate as low as possible…
While I am still making that offer to any blogger, I thought I would share my tips for creating the best possible listing that anyone can use on prosper to get a loan.
- There are some credit statistics that are factual and out of your control (current inquiries, current delinquencies, etc.). These are simple related to your circumstance and are difficult to adjust for your benefit by definition… There are others that you can control namely loan amount and the related DTI. If at all possible with your statistics that are out of your control, adjust your loan amount and thereby your DTI to conform to a portfolio plan slice. These slices are updating frequently and they can be a moving target (ask deep market… his listing went live at 3 in the afternoon and the slices were adjusted that evening.) Why? because the default portfolio plans have a lot of purchasing power… (My own listing might have gotten as much as $12K+ in portfolio plan bids in 4 days.)
- End your listing around 5 pm est… For whatever reason, that seems to be the time when more bids are placed. This leads me to believe this is a time of peak lender activity.
- End you listing on Thursday (assuming normal weekend and not a holiday)… This may no longer hold the same power as it once did (due to the $50 instant transfer for Facebook users), but the theory goes… Any lender transfer of money occurring between 11:01 am est Friday and 11:00 am Monday will result in the money being available for bidding on Thursday due to the time it takes for the transactions to clear the bank… Not everyone is a Facebook user or has the Prosper facebook application installed and therefore I would still use this tip.
- Tell your story. Be truthful and honest and put as much detail into the story as you feel comfortable with… An expenses breakdown and a list of income amount and sources might help with a lower interest rate. But only provide what you are comfortable sharing. Your listing should make sense financially, else why are you getting the loan?
- Use a relevant picture… Do not you use a picture of someone else’s house or someone else’s blond girlfriend (hat tip to Freakonomics who says that young blond women outsell all other demographics in America).
- Choose the right starting interest rate… Prosper now provides interest rate guidance. Use the rate with the best chance of funding. You cannot get a loan if your listing does not reach 100% funded… The listing will only begin to be bid lower after it reaches 100% funded.
- Get endorsements from friends and get bids from friends who have endorsed your listing. I had 14+ endorsements (maybe a bit of overkill) and 11 bids from Prosper friends. I also have a number of bids from friends that are not confirmed Friends on Prosper. Try to get at least 3 friends to endorse and bid on your listing.
- Answer questions. If a lender takes an interest in your listing enough to ask a question, they deserve an answer. I answered all the questions asked. Even the question that involved details of my financial life that I am not comfortable sharing. I intentionally left out an income and budget breakdown from my listing. I do not recommend this if you are trying for your lowest possible interest rate. But I simply did not feel comfortable sharing that information (perhaps to my interest rate detriment). But even then I answer the question politely decline to answer and stating my reasons.