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Prosper

February 12th, 2008 at 04:36 pm

Has anyone used prosper to lend money and get a higher return on their money? I've decided to check it out with a small amount ($1,000) of money, if my return stays above 5%, I might invest more. They say that the average return rate is close to 10% I'm just wondering why there are so few people using it.

4 Responses to “Prosper”

  1. Mr. Meager Says:

    About a year ago I read about prosper and went through their site in detail. To me it seemed like and a good idea but I never followed through. I might reconsider considering rate drops.

  2. Caoineag Says:

    I am currently using it. I actually started out with the min, $50 and have been getting 13% interest rate (only 4 months so far though so take that with a grain of salt) so far. I just won another loan with a much higher apr so we will see how that goes. Main advice is keep the bids small so that you are very diversified. Obviously I am not diversified thanks to investing so little but I am investing small amounts in different loans.

  3. Broken Arrow Says:

    Um, well, part of the reason why could also be because of its higher risk. I know they check your credit rating, and late payments are dealt with promptly. Still, when it's all said and done, some people are on there because they can't get loans anywhere else. That makes them dangerous. To be fair, others are on there because they are seeking better rates.

    To me, it just seems easier to buy a bond fund and call it a day... but maybe some enjoy the more "personal" nature of peer-to-peer lending?

    Anyway, please be careful about prosper. It can pan out, but it doesn't always do so.

  4. Mr. Meager Says:

    BA, some good points. I think I would go into with the notion that I do with lending money to family: don't expect it back. I tried to get the username LOANSHARK or LOANSHARK4U, but they were taken...damn.

    I'm curious how ebay is going to be with the change in the feedback system.

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