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Highest Echelon

A personal finance blog. Paying for my University, life and eventually achieving financial freedom.

Is 298463% debt to income ratio too much for a loan? On Prosper.com, No Problem!

Thursday, April 26, 2007

I just found this listing on Prosper.com. Salvimex714 wants to borrow $4000 at 29% APR. He has a credit rating of AA (the best Prosper has to offer). What's stopping me from bidding besides the fact that he's unemployed, has no income, no endorsements, and a scary picture? The 298463% Debt to Income Ratio!


posted by johnwilkx, 10:27 AM


Lol...I can't even count the number of digits in that 298...% wow!

So the AA rating is not based on the ratio then? Probably the dude borrows and pays back on time (by borrowing from other places (?))...or something like that.
Personally, I wouldn't sweat the DTI this time. I see this all the time with house-flippers. They're leveraged out of their mind (with secured investments) and they're good with money overall. If the credit rating was bad, I'd be nervous though.

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