anyone try the prosper thing?

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No Lifer
Sep 29, 2000
70,150
5
0
Originally posted by: zinfamous
Originally posted by: UNCjigga
I am very interested in the shylocking business and would like to subscribe to this thread.

yeah, I listened to the NPR story this morning. sounds rather sketchy, but I am intrigued.

Those with experience, does prosper.com rent out goons in the event that you will (likely) need them?
It has a collection service and/or they will buy bad debt from you, but bad debt never sells for much. Basically if you get a default, just kiss the money goodbye--same as any lender does to a deadbeat with crap credit, no collateral, and doesn't care.

 

RossMAN

Grand Nagus
Feb 24, 2000
78,816
323
136
Originally posted by: Skoorb
Originally posted by: BlancoNino
Is it possible to borrow $10,000 from prosper using a good credit score and history at a low interest rate and then turn around and lend that 10K to somebody with worse credit and make a profit by virtually doing nothing but taking a risk?
YES. People are doing this. I have seen request for many loans for about $10k from AA rated people who clearly state the intent is to relend on Prosper. They are offering about 9-11% on their loans.

I want to do this. However, b0mbrman's experience scares the hell out of me. I have no concern about the risk from individual lenders. Any lender has to face those, but if the site can lock an account indefinitely, then that is a real concern. Also, is this site secured/guaranteed in any way? As somebody else alluded to, what is truly preventing the owners from waiting until they are stinking rich with the money in people's accounts prior to withdrawal and then just retiring to some warm climate?

Rossman I know you do your due diligence, what are your thoughts so far?

Also, there are other sites like prosper such as lendingclub.com

I never looked into it further.
 

manlymatt83

Lifer
Oct 14, 2005
10,051
44
91
Yes, I did it very early on (as in started my loans in 2006 when they started up) and lost a lot of money, even to conservative lenders. As of now, 50% of my loans have defaulted. But now they are more strict about how they give money out, so I guess I just got shafted.
 

Pabster

Lifer
Apr 15, 2001
16,986
1
0
Considering the overall credit market, it should be no surprise that Prosper defaults are on the rise.
 

TruePaige

Diamond Member
Oct 22, 2006
9,874
2
0
With propser, the rate is an Annual Percentage Rate right?

For example if I lend a 1000 dollars like so through the 3 year way they do it..

Mind you this is very rough as I didn't take into account the balance and interest changes monthly...just as a really really rough sketch of earnings potential.

1000 @ 24% = 240 profit

667 @ 24% = 160 profit

333 @ 24% = 79.92 profit

479.92 = total profit

?
 

Gothgar

Lifer
Sep 1, 2004
13,429
1
0
What a damn interesting site... don't know how I missed it before, looks like it would be badass, but it also looks as though a couple people lost their ass on it.

Right now if a current lender refers another lender who signs up, they both get 25 free dollars to lend :p
 

KLin

Lifer
Feb 29, 2000
29,554
158
106
Originally posted by: TruePaige
With propser, the rate is an Annual Percentage Rate right?

For example if I lend a 1000 dollars like so through the 3 year way they do it..

Mind you this is very rough as I didn't take into account the balance and interest changes monthly...just as a really really rough sketch of earnings potential.

1000 @ 24% = 240 profit

667 @ 24% = 160 profit

333 @ 24% = 79.92 profit

479.92 = total profit

?

More like 412 bucks @ 24% compounded monthly. It'll be a little more if the interest is compounded daily.
 

Dacalo

Diamond Member
Mar 31, 2000
8,778
3
76
I have been lending since August, and it has been great so far. All current, no lates. Have about $550 invested. Remember though, mostly likely, loans will last 3 full years, so these aren't very liquid. Consider this before you jump in.

I am planning to invest $100 every month to see how it goes...
 

RaiderJ

Diamond Member
Apr 29, 2001
7,582
1
76
I've borrowed $1,000 from Prosper and paid it back pretty quick. Good experience, and I like the idea of paying interest to a person rather than a bank/credit card. Considered loaning out money too.
 

Ilikepiedoyou

Senior member
Jan 10, 2006
685
0
0
Originally posted by: RaiderJ
I've borrowed $1,000 from Prosper and paid it back pretty quick. Good experience, and I like the idea of paying interest to a person rather than a bank/credit card. Considered loaning out money too.

If you don't mind, can you give us more info. What was your interest rate? After asking for the loan, how long did it take to get enough people to contribute? Is there any penalty for early repayment? How is the interest compounded? Anything you think would be useful? Thanks!
 

TallBill

Lifer
Apr 29, 2001
46,017
62
91
Well, I'm signing up today. I'm expecting a big lump of cash from the Army soon and I'm going to split it and put part into Prosper. Plan on at least $1000. If it goes well, I have a few CD's maturing soon and I'll put those into prosper as well.
 

SleepWalkerX

Platinum Member
Jun 29, 2004
2,649
0
0
Wow what a cool idea. Just signed up to be a loaner.

They were unable to automatically identify me (I'm 18 and I haven't had a credit card at all so I'm pretty sure I have no credit history). I have to manually send a picture of my social and driver's license.. sigh.. Oh well hopefully this will turn out to be an interesting endeavor.

edit:

Has anyone had to manually send a pic of their driver's license or social? Its really going to be a pain to get a hold of my social so I'm hoping all I have to send in is just my driver's license.
 

Imdmn04

Platinum Member
Jan 28, 2002
2,566
6
81
All it takes is just one default to wipe out all the money you made from 10 loans.
 

zinfamous

No Lifer
Jul 12, 2006
111,125
30,076
146
Originally posted by: mjuszczak
I'll join an AnandTech group

I would join one....but I don't want your money passing it's misfortune over to mine.

Dude...you can't even brush your teeth without our advice. How could you possibly succeed at loaning money to high risk borrowers?
 

zinfamous

No Lifer
Jul 12, 2006
111,125
30,076
146
Originally posted by: mjuszczak
Yes, I did it very early on (as in started my loans in 2006 when they started up) and lost a lot of money, even to conservative lenders. As of now, 50% of my loans have defaulted. But now they are more strict about how they give money out, so I guess I just got shafted.

well, now that I went back and read this post, I stand by earlier statement :D
 

TallBill

Lifer
Apr 29, 2001
46,017
62
91
Sweet, transfer went through and started bidding. Guess I'll check back in a few weeks after all my bids are through and then in a month or so. Seems fine so far, I'll probably put some more into it.