I don’t normally read the stories in forum, but this one caught my eye. It is enough to make this fiscally libertarian, environmentally green, and socially democratic prosper lender smile…
OK, I don’t have a lot of time, but I REALLY wanted to get this out there.
First, I would like to thank every single lender who I have not thanked already who bid on my loan (not just those who got stuck with me ). You took a huge chance on me, and for that I am grateful.
Here’s what happened. I took the money and immediately paid one of my wife’s credit cards off ($24,600), and a few other bills with my tax refund/annual bonus. This brought my wife’s utilization down under 33%. We then requested a line of credit from that bank, and she was approved for $37,500, but she had to close that credit card. Pretty easy decision, even though it was our oldest card open. Then, we turned around and did the same with my credit, opened loans, paid off cards, etc. until we had everything under 17% APR…except this one. We were then able to refinance our home to get my name on it, as hers was the only one on it at the time (I hadn’t worked at my job long enough when we bought it, so that was the best way to get the best rate). This also saved us an extra $100 per month.
As the dust was starting to settle, I crunched the numbers to see where this loan stood. The answer was clear: I needed to pay this down or off. I truly wanted to give my lenders more of a return than this, so I researched the forums to see the attitude about early payoff, and was also in contact with some personal lenders. I was pleased to see that it was not looked at very negatively at all. So I payed a huge chunk.
When we refinanced, the lowest credit score for my wife and myself between all three bureaus was 753. I wonder if that’s still a D in Scorex? We may find out. When I pay off the remainder of this loan, whether in the next month or six, I will relist. The reason is because I don’t like to have large revolving debts, and the lines we opened are still considered revolving, even though not cards. I just could not afford to pay 21% any longer than I had to.
I’m probably missing something in between there, but the short of it is everything is going WAY better than I expected. I love lurking on the boards, and I have overall had a great experience at Prosper thus far.