Prosper? Or a Plan?

RyinLA · 01-02-2008, 05:26 PM

Has anyone succeeded in getting a loan from Prosper.com? Or benefitted from lending? I signed up with them not long ago because i found the concept fascinating, but recently some unexpected medical expenses have me considering a loan through them. Longer term i have considered investing through the site, but am wondering people's thoughts about it.

I am currently trying to save for a wedding in August, pay off my credit card debt and deal with my medical expenses. I can't do it all, but i am determined to check off all three expenses by the time i'm married. I could take a loan for the medical expenses, but it seems smarter to pay off the high interest cards first and save for the doctor. Prosper seems interesting, but maybe somebody has other advice?

Julie Rains · 01-02-2008, 05:36 PM

Lynn wrote a post on Prosper: So You Wanna Be A Banker... | Wise Bread. It sounds risky with potential for investment reward; perhaps better for borrowing if you don't have stellar credit -- not sure if this is what you need / are looking for right now.

summrs1 · 01-02-2008, 08:23 PM

I have done some lending on prosper, but with the current credit crisis in the US, I don't like the risk anymore. I have done lending for 11 loans, with 1 going bad on me. Because of that one loan, I will be earning about the same or less as a CD, which would only tie up my money for 1 year vs. 3 with prosper.

With the risk, I don't plan on doing any more lending.

For borrowers, I think it could be a good way for someone to get a loan. Not sure what kind of rate you could get, but it is an alternative worth trying.

Good luck.

Megan · 01-16-2008, 09:21 AM

Initially, I was drawn to Prosper, but the more I read, the more I think I'm going to stay away. I like the idea of being able to help people out and earn some interest, but I'm just not sure the risks are worth it to me.

Gootsy · 01-16-2008, 09:33 AM

I've read a bit about Prosper. It seems like a really good idea, and I've thought about lending out some money just to try it out.

What turned me off though, is I kept hearing how time consuming it can be to look for the best person(s) to lend to.

rstlne · 01-16-2008, 02:28 PM

I can't tell you about the borrowing side of Prosper because I've only been a lender there. I pick only the best loans, invest in around 50 loans, and have not had a default yet.

Julie Rains · 01-17-2008, 12:30 PM

Quote:

Originally Posted by rstlne

I can't tell you about the borrowing side of Prosper because I've only been a lender there. I pick only the best loans, invest in around 50 loans, and have not had a default yet.

I've only read about Prosper but how do you decide what loans to invest in and what is your rate of return?

rstlne · 01-17-2008, 01:01 PM

Quote:

Originally Posted by Julie Rains

I've only read about Prosper but how do you decide what loans to invest in and what is your rate of return?

The criteria that I've been using are:
1. A or AA credit grade
2. 15% or lower debt-to-income ratio
3. No delinquencies.
4. No public records.
5. Interest rate 9% or higher. (I bid 9% every time.)

I haven't found any of the other information on the loan listings to be very useful. Of course, I'll favor loans that will be used for interesting business ventures.

My rate of return has been a bit under 10%.

Julie Rains · 01-18-2008, 04:50 AM

Thanks for sharing your strategy!

khorrell · 01-18-2008, 02:17 PM

Thank you all for the thoughts. I have also been looking into Prosper and it is great to hear others ideas about it.

May all your loans be good ones

01-02-2008, 05:26 PM	#1
RyinLA Junior Member Join Date: Jan 2008 Posts: 3 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (10)	Prosper? Or a Plan? Has anyone succeeded in getting a loan from Prosper.com? Or benefitted from lending? I signed up with them not long ago because i found the concept fascinating, but recently some unexpected medical expenses have me considering a loan through them. Longer term i have considered investing through the site, but am wondering people's thoughts about it. I am currently trying to save for a wedding in August, pay off my credit card debt and deal with my medical expenses. I can't do it all, but i am determined to check off all three expenses by the time i'm married. I could take a loan for the medical expenses, but it seems smarter to pay off the high interest cards first and save for the doctor. Prosper seems interesting, but maybe somebody has other advice?

01-16-2008, 09:21 AM	#4
Megan Senior Member Join Date: Dec 2007 Posts: 320 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (63)	Initially, I was drawn to Prosper, but the more I read, the more I think I'm going to stay away. I like the idea of being able to help people out and earn some interest, but I'm just not sure the risks are worth it to me. __________________ Counting My Pennies

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01-02-2008, 05:36 PM	#2
Julie Rains Wise Bread Blogger Join Date: May 2007 Location: North Carolina Posts: 401 Thanks: 1 Thanked 0 Times in 0 Posts Reputation: (189)	Lynn wrote a post on Prosper: So You Wanna Be A Banker... \| Wise Bread. It sounds risky with potential for investment reward; perhaps better for borrowing if you don't have stellar credit -- not sure if this is what you need / are looking for right now.

01-02-2008, 08:23 PM	#3
summrs1 Junior Member Join Date: Dec 2007 Posts: 11 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (10)	I have done some lending on prosper, but with the current credit crisis in the US, I don't like the risk anymore. I have done lending for 11 loans, with 1 going bad on me. Because of that one loan, I will be earning about the same or less as a CD, which would only tie up my money for 1 year vs. 3 with prosper. With the risk, I don't plan on doing any more lending. For borrowers, I think it could be a good way for someone to get a loan. Not sure what kind of rate you could get, but it is an alternative worth trying. Good luck.

01-16-2008, 09:33 AM	#5
Gootsy Senior Member Join Date: Jan 2008 Posts: 281 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (24)	I've read a bit about Prosper. It seems like a really good idea, and I've thought about lending out some money just to try it out. What turned me off though, is I kept hearing how time consuming it can be to look for the best person(s) to lend to.

01-16-2008, 02:28 PM	#6
rstlne Senior Member Join Date: Jan 2008 Location: New Jersey Posts: 368 Thanks: 0 Thanked 0 Times in 0 Posts Reputation: (115)	I can't tell you about the borrowing side of Prosper because I've only been a lender there. I pick only the best loans, invest in around 50 loans, and have not had a default yet.

01-18-2008, 04:50 AM	#9
Julie Rains Wise Bread Blogger Join Date: May 2007 Location: North Carolina Posts: 401 Thanks: 1 Thanked 0 Times in 0 Posts Reputation: (189)	Thanks for sharing your strategy!

01-18-2008, 02:17 PM	#10
khorrell Senior Member Join Date: Jan 2008 Location: near Washington DC Posts: 608 Thanks: 0 Thanked 1 Time in 1 Post Reputation: (84)	Thank you all for the thoughts. I have also been looking into Prosper and it is great to hear others ideas about it. May all your loans be good ones