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