September 5th, 2009
There are now nineteen live listings on WikiLoan.com. Not surprisingly, none of the listings have been issued funds from a lender. The borrowers are asking for outrages interest rates based on their credit ratings. There are borrowers asking for 4% interest rates for their unsecured loans! Most of the listings have F ratings (scores between 0-599) and are asking for rates under 10%.
I can’t blame the lenders for avoiding this site for now. WikiLoan should advise their borrowers of reasonable rates based on their credit scores. LendingClub sets the rates, and prosper shows lenders how likely their loan will be funded for a range of rates.
August 31st, 2009
Ok… after a great summer with lots of fishing and camping, I am finally updating status of prosper to live. I know I’m clearly behind on their reopening but I have kept my eye on their progress the past few months. After watching a commercial today on CNBC promoting their newly reopenend site, I decided its time to update this site.
Personally, I’ve always felt prosper was an investors haven. Their rates are considerably higher than the competition leading to better returns. However, if you’re a borrower, look out! I’ve invested with prosper with great success and have tried their borrowing side. Borrowing was a disaster. First of all their credit scoring is a mystery. The past two reports prosper pulled gave me a D score and an AA score with no change on my experian credit report. The AA Score allowed me to borrow at a great 5.89% which is slightly higher than my credit union. However, with the D score I received the first attempt, I was looking at a rate of 19.99% which I would not even attempt a test run with.
The site is once again friendly and easy to use for both investors and borrowers. My suggestion with the re-release of prosper to borrowers is to keep trying a new credit pull each month (THEY DO NOT MAKE HARD HITS ON YOUR CREDIT REPORT. THIS WILL NOT AFFECT YOUR CREDIT SCORE). If you are shocked by a low credit rating, don’t attempt to receive a loan with a high interest rate. Peer lending is a fun new innovation, but be smart and don’t get stuck with an interst rate higher than your local banks. Try again next month and see if your credit rating jumps like mine did from D- AA. I can’t explain the difference but can tell you the difference between 19.99 to 5.89 was considerable.
Welcome back prosper!
November 30th, 2008
Loanio.com has entered a quiet period as they begin the registration of promissory notes. Well.. at least it isn’t floating alone as it shares the boat with Prosper.com. Lendingclub.com finished the process earlier this year and is free sailing.
The thing that I have a hard time understanding is why Loanio even opened their doors for business. They delayed the grand opening multiple times… opened shop… just to close it two months later. Hopefully while they stand idle, they get licensing for more states. I figure if you’re going to have a grand.. grand.. reopening, truly have “Peer Lending For Everyone”. Good Luck Loanio.com!
“Loanio, Inc. has suspended its business activities so that we may begin the process of registering our promissory notes with the appropriate securities authorities. Please be advised that effective immediately, Loanio will no longer be accepting registration from lenders or borrowers or accepting new loan requests until further notice. We appreciate your understanding and patience during this “quiet period” and hope to reopen for business as soon as possible.
During this period we will not be responding to press, blogs, or other member inquiries specifically related to the suspension of business. However, if you have questions related to your account, loans, or any other related issues, you may contact us, as always, by logging into your account and creating a customer support ticket. ” Loanio.com
