Wednesday, May 02, 2007
I am loathe to do this, but I must:
In order for my business loan application to be successful, I must have $10,000 in cash. I have managed, despite my tenuous financial status, to collect $6000. I need $4000. I do not want charity. I would not feel truly successful if the only way I could do it was by using handouts. Instead, I have set up a Prosper.com listing.
Prosper is a borrower/lender site. A borrower posts a listing for money they need, and people with money to invest bid on which listings they are willing to put their money on based on their own personal criteria. The interest rate starts out based on what the borrower's credit garners, but it can be brought down if their listing gets more bids than the total they request (the investors compete against each other in that way--the investor willing to earn less interest wins). The payments for these loans are auto debited and tracked through Prosper, and the investor earns interest off of their initial bid. You can bid for as little as $50 to the total amount of the listing.
This site currently lists my credit rating as "E", which is the lowest available before being classified as "High Risk". This really hacks me off, because my credit isn't that bad. I'm told that their scoring model is really hard on people without mortgages, which is half the problem, and the other half is that my credit card balances are pretty high. None are maxed out, but I am using about 75% of my credit lines. I have a "30 Days Late" from about 3 months ago when a payment I had made online had contained a typo and didn't go through, which of course I didn't find out about until I went to make the next payment, and a bankruptcy from 9 1/2 years ago (that '7 years' rule only applies to POSITIVE credit items. Bankruptcies linger for 10 years!).
Even if I max out my credit cards to get the cash I need, I won't have quite enough, plus then my credit score will tank and I could get turned down for the loan. I really can't think of any other options. So any bids at all would be most appreciated. This is the best way I can think of for friends who have said, "I wish I could help." to do so without actually handing me a check and making us both uncomfortable.
If you're interested, you can see my listing here.
In order for my business loan application to be successful, I must have $10,000 in cash. I have managed, despite my tenuous financial status, to collect $6000. I need $4000. I do not want charity. I would not feel truly successful if the only way I could do it was by using handouts. Instead, I have set up a Prosper.com listing.
Prosper is a borrower/lender site. A borrower posts a listing for money they need, and people with money to invest bid on which listings they are willing to put their money on based on their own personal criteria. The interest rate starts out based on what the borrower's credit garners, but it can be brought down if their listing gets more bids than the total they request (the investors compete against each other in that way--the investor willing to earn less interest wins). The payments for these loans are auto debited and tracked through Prosper, and the investor earns interest off of their initial bid. You can bid for as little as $50 to the total amount of the listing.
This site currently lists my credit rating as "E", which is the lowest available before being classified as "High Risk". This really hacks me off, because my credit isn't that bad. I'm told that their scoring model is really hard on people without mortgages, which is half the problem, and the other half is that my credit card balances are pretty high. None are maxed out, but I am using about 75% of my credit lines. I have a "30 Days Late" from about 3 months ago when a payment I had made online had contained a typo and didn't go through, which of course I didn't find out about until I went to make the next payment, and a bankruptcy from 9 1/2 years ago (that '7 years' rule only applies to POSITIVE credit items. Bankruptcies linger for 10 years!).
Even if I max out my credit cards to get the cash I need, I won't have quite enough, plus then my credit score will tank and I could get turned down for the loan. I really can't think of any other options. So any bids at all would be most appreciated. This is the best way I can think of for friends who have said, "I wish I could help." to do so without actually handing me a check and making us both uncomfortable.
If you're interested, you can see my listing here.
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