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Blog Entry 14 of 14 Learn the truth about buying financial Products

After 20 years selling items to the general public I think it's time to start leveling the playing field. Teaching folks what's on the minds of the companies and the people coming to your homes to sell just about anything somebody might be willing to buy. Many times I have gone home shaking my head when I have been beat out for a sale by a slick talker just interested in lining his wallet. For the last 20 years I have been involved in some way in direct sales to the public. I have worked for some of the largest financial firms in the US. I have also worked for some of the largest insurers in the nation, always very successfully, rising to management positions with several companies. I currently hold a Florida state insurance licence, a securities licence with the NASD and can transact Mortgage business. I have also held a Real Estate license in 3 states. I am 43 years old, married to an amazing woman and have amassed 4 children ranging in age from 11 to 15. I seem to have a quite addictive personality and my latest obsession is my Recumbent Bicycle riding about 20 miles a day. I have also had love affairs with golf and nascar over the years. I am an instrument and commercial rated pilot, although I have not flown since I sold my plane in 2001. I sincerely hope you enjoy my posts and more importantly I hope you learn something that makes your financial future brighter.

Blog Url: http://tc.yourhub.com/~TruthinFinance

Borrowing Funds via Prosper.com

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Contributed by: Tom Johnson on 6/8/2006

Here are some hints to placing a successful ad on Prosper.com

1) Make your ad interesting and personal.

2) Add pics of you and your family. Also, add pics for the item you are trying to finance, if applicable.

3) Place your ad with an interest rate competitive with other people in your credit and debt to income situation.

Use this link to see up to date funding rates for each loan grade. You may have to register with wiseclerk to see this valuable info:

wiseclerk.com

If your Debt to Income is greater than 20% you will fund in the high range of your credit grade, if at all. Make sure to include all of your household income. If you have a two income household and only put in one income the credit report may show debts that belong to both earners and can dramatically increase your DTI.

Also, many states have limits to the maximum interest rate than can be charged. If you are from Ohio, PA or DC you probably will not be able to get a loan even with "AA" credit. You can check the limits for your state here State Interest rate limits

4) Once you have found out your credit grade place your ad so that you are in the higher range of funding. This will attract bidders. Once you have attracted enough bidders to fund your loan more bidders will come in and lower the interest rate knowing that they are not commiting "dead" money to a loan ad.

5) If your loan amount is below $5,000 do not list for more than 7 days. For listings over $5,000 you can go up to 14 days. UPDATE, it is taking more time now to fund anything over $3,000.
6) If your are comfortable with the interest rate you select then it is wise to select the immediate funding option. If your loan is attractive it will bring in early bidders that don't want to miss out on a good thing.

7) DO NOT waste your time placing an ad below market. It WILL NOT get funded. The idea is to get bidders early and fast. If you set your initial interest rate high enough for your credit score you may trigger automatic bids that will get the ball rolling.

8) If your credit score is below a "C" you will want to tell the lenders what happenned to put you in that situation. What you did wrong, why and what you have done to fix the problem.

9) Don't dwell on the past negatives. Even though you want to disclose them if you have bad credit, you want to spend more of your efforts explaining where you are going and what your plan is to get there.

10) Look at the ads that are about to lapse to get a better idea of what to do and not to do. Do this by going to the lend tab and click see all listings. This may also give you an idea of current interest rates lenders are willing to pay.

11) If your first ad doesn't work listen to the feedback you recieve and change your ad to fit the feedback.

12) Remember the lenders on Prosper are not there to do charity work. They are there to make a buck. If your credit is below "C" they know you will have a difficult time finding money to borrow at any price. So they will expect to be paid well for taking the risk.

If you have any more questions drop me an email

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