It seems to me that a lot of these people are really enjoying lording it over our heads that we need money and they can make us jump through hoops to get it. They really want to know a lot of really personal stuff, like ... specifics about my credit history.
Gee, if I were loaning you $2000, would you get mad if I asked you whether you have the ability to pay it back? Why would you get upset if I asked you for details about how you`ve paid back other debts before mine? Your debt repayment history and your current ability to pay back my loan would be important information for me to make a decision.
I understand your frustration, but I don`t understand your reasoning. Past actions are a good predictor of future behavior.
- Why wouldn`t
a person lending you money want to know what your credit history is? S/he would be stupid to loan money to someone without knowing if you have a habit of repaying your debts. The point of loaning money is to earn a return. People who defaulted on past loans are likely to default on new loans, so it would be prudent for a lender to ask some questions. Some would call this "due diligence". I call it common sense.
- There seems to be a big gap between Prosper`s marketing come-ons and actual practice by the real people who are putting in the loan money. Prosper writes good ad copy, making it sound like anyone with bad credit or no credit can EASILY get a loan. Real life tells us this just ain`t so.
- Should lenders lend their money just to do a good deed for Mankind? Are they honor-bound to help anyone who posts a request on the board ? I don`t think so. Again, the point of lending is to get a return. If your history shows you don`t pay your debts, why would I lend you money? If I don`t ask you about your debt history, I deserve to be cheated. (I don`t mean "you" personally - I am not trying to say something bad about you, yourself.)
The lenders are real people like you and me, with a few $$ to put into the pot and hope to get more back. Real people are smart enough (usually) to loan money with a good chance of getting it back. Common sense tells us that a person with a poor credit history is a higher risk than a person with a track record of paying bills on time. So why SHOULD the lenders take a chance on a person with "bad credit" if they have a choice between that one and someone with better credit? They don`t owe you (or me) anything. This is not an entitlement program.
If you look at prosper.ORG and some other information posted here at startupnation, it looks like the risk to the lenders is pretty high. So clearly lots of borrowers are not keeping up with their obligations.
A lender trying to make a profit would avoid any borrower with less than stellar credit, since it is obvious the number of borrowers defaulting at Prosper is high. So I don`t see a problem with lenders asking detailed questions about the ability of a borrower to make those monthly payments, or to ask about the borrower`s history of honoring debts. They`d be foolish not to.
That said, I`m going to post a loan request myself for my startup business. If it works, that`s great. If it doesn`t, well - it was worth a try.