Eric's Credit Community

Hello everyone,

Well, for starters this loan will be used to consolidate several credit cards of varying interest rates.  I have around 8 grand in Credit Card debt, most of which was accumulated while I was in school (graduated in May 2005) and in the months after graduation.  I have $5,000 on two cards with 12 and 13% interest, but I'm looking to pay off 3 smaller cards that range between 17 and 26% ($3k total).  I had a few job search setbacks after graduation and was unemployed for a few months, but I received a position with a great company last December.  My current yearly income is $48,000, with an after tax (and medical/dental) monthly net pretty at just under $3,000.  My employment status is very stable and I am expecting a year end raise in the neighborhood of 10-20%.  I work in management consulting for BearingPoint, one of the largest firms in the business.  

My credit scores are range anywhere from 580 to 630 depending on which scoring model is being applied.  (my scores have been checked via two different companies this month)  Even with adding a new installment loan, paying off my credit cards will give me a major boost to my credit.  Prosper is only displaying 1 delinquency in the last 7 years on my file, but unfortunately that is not correct.  I probably have about 9-10 total late payments in my credit history (almost 8 years now), but most of these occurred in 1999 and 2001.  My late payment days are definitely behind me, and I learned how important a clean payment record was a long time ago. 

The DTI that prosper is listing for me (6%) is a little lower than what it should be.  I recently purchased a car (my 98 finally broke down) and it has not yet been reported to the Credit Bureaus.  One of the reasons why I'm looking to consolidate is to be able to finance my auto loan at a better rate.  The best I could find was 16%, and I stand to save a bit each month if I could refinance with a better rate.   

My current budget. 
After Tax Income, 3000 monthly
1025 Rent
100 Electric/Water 
50 Cellular Phone (conservative estimate due to company reimbursement)
100 Cable + Internet
10 Voip Phone
110 Auto Insurance
65 Gas
300 Food
100 misc.
400 Auto Payment  (Not included in Prosper?s DTI calculation)
100 Entertainment
45 Gym Fee
180 Current Credit Card Minimum Payments 
67 student loan payments
60 Clothing
288 Left over after expenses.  

I think this is a very fair budget, and I have a little fat that could be trimmed if I wound up in financial trouble.  Cable TV would be easy for me to drop, and my student loans could be deferred, not to mention the possibility of reducing entertainment etc.  Paying off my three high interest cards would only result in an increase of $46 a month to my budget.  I think with my options to cut back on expenses, my upcoming raise, and the possibility of decreasing my car payment by refinancing, bodes well for my odds of paying this loan off in a timely basis.  Most of my raise will be used for accelerated payments on this loan, with the balance going to my 401k.  I also have no dependents (and no intention of gaining any).  I will be making a thread in the Prosper forums to answer any lender questions that may arise.  (link will be posted here after the listing is approved)  I will also be working with my group leader to provide relevant financial documents.  If you are still with me thanks for taking the time to read my book.   

Happy bidding!