Lender Borrowing to Learn ? 20 Years Immaculate Credit
| Listing Information | |||
|---|---|---|---|
| Amount: | $2,550.00 | Status: | Loan created |
| Grade: | AA | DTI: | 3% |
| Lender Rate: | 6% | Borrower: | SuperCleanRick |
| Finished | State: | CA | |
| Funded: | 100% | Group: | GROUP CLOSED |
| Loan Information | |||||
|---|---|---|---|---|---|
| Loan Status: | Current | Origination Date: | 2007-01-03 | EricsCC ROI: | 4% |
| Status History | |
|---|---|
| Jan 05, 2007 | Current |
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About the Loan I plan to use this loan as a learning exercise. I want to understand how the lending process works from the borrower?s perspective, so listing a loan seems the best route. I don?t need this loan to fund my lending, but if I do get funded, I expect to keep it the full term, to get the maximum use out of Prosper?s loan initiation fees. If I?m funded, I?ll use this loan to fund other Prosper loans. I?m very conservative, so I only bid on loans with B, C, and (occasionally) D credit ratings. I expect all my loans to receive at least 12%, plus the average default percentage. This leaves a fairly small percentage point spread, but I?d rather be safe than greedy. About my Credit As you can see from the report, I have 20 years of perfect credit, without missing a single payment. Ever. This includes my years as a full time student, a short stint of unemployment, and the year my wife was treated for breast cancer. I have to give God the credit for meeting my wife?s medical bills; we had a miraculous 60% increase in our income that year. But I will take credit for being disciplined in my bill payments through 6 surgeries, chemotherapy, radiation, and other procedures. Despite all the medical profession had to offer, I also give God the credit for healing her, and have pictures of her waterskiing last summer as proof. I tend to pay off all my loans and credit cards right away, as you can see by my low DTI. The only debt I have currently is my mortgage and a few zero interest accounts that I?ll pay from savings once the grace period runs out. I do have some short-term debt from purchasing Christmas inventory for my online store, but it doesn?t seem to be showing up in my credit report, and will be paid off after Christmas using revenue from the store. I have quite a few credit lines in my credit report, because I take advantage of zero percent interest on all my major purchases. You?re seeing a credit line for nearly every furniture, appliance, or remodeling purchase I?ve made in the last 20 years. All of these have been paid off at the end of the zero percent grace period, but they continue to live in my credit history. About my Ability to Pay the Loan I have bachelor?s degrees in Electrical Engineering and Computer Science, and have a Master?s degree in Business (MBA). I?ve been an Information Technologies professional for 25 years, and am currently employed at a fortune 100 company, where I draw a 6 figure base income, an annual 20-30% bonus, and stock options. I have 4 month?s salary saved in CDs, and will have more when I sell some options next year to replace money we used to install a new air conditioner. I also have adequate savings in the bank to cover this loan if necessary. I have a 401(k) which I can draw loans from, as well as a stock account and other investments I could cash in if I had to cover this loan. My net worth, not including the value of my grossly over-appreciated California home, is in 6 figures. Since I have very little debt, my only firm financial commitments are our mortgage, utilities, gasoline, food (3 kids!), and our tithe to the church. This leaves me several thousand dollars of discretionary income each month, so I could also cut back on our lifestyle to pay this loan. Summary I?m offering a rate that is better than CDs or Money Markets, and am as safe as you can get without being FDIC insured. If you?re a fiscal conservative looking for a reliable return, then this is the loan for you. |
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