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Cool idea: prosper.com (like ebay for loans)

kranky

kranky

Elite Member
Heard about a novel idea today - prosper.com . It matches up people who want to borrow money with people who want to lend money. The lenders "bid" for an amount and an interest rate they want, and those who bid the lowest interest rate "win".

The site collects and disburses the money electronically, and loan payments are made through automatic withdrawals from the borrower's bank account.

I think this is a cool idea - just like ebay, it can cut way down on the margins involved in borrowing/collecting interest. Lenders could get (for example) 8% instead of 3% from their money market account, and borrowers can pay a lot less than high credit card or personal loan rates.

Who knows if it will pan out, but a similar site in England has never had a default and lenders get an average of 7%.

[edited to include link]
 
This is crazy. I came up with the same idea about a year ago but never made the effort to get it off the ground. I just showed my wife that site and she could not believe it.
 
Originally posted by: Drekce
This is crazy. I came up with the same idea about a year ago but never made the effort to get it off the ground. I just showed my wife that site and she could not believe it.
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SUE!!!
 
Originally posted by: Drekce
This is crazy. I came up with the same idea about a year ago but never made the effort to get it off the ground. I just showed my wife that site and she could not believe it.
Click to expand...

Lol you snooze you lose!
 
Originally posted by: MIKEMIKE
nice thought, but do you get credit checks and what not? or is it just blind?
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Yeah... I'm not lending anyone anything bigger than a pencil without a credit check and refrences.
 
Originally posted by: MIKEMIKE
nice thought, but do you get credit checks and what not? or is it just blind?
Click to expand...

They pull credit reports and the payment history gets reported as well.
 
Surely this is going to be riddled with people who use it to make money with minimal work?

I'm definately going to look into it, as surely you just borrow money from someone at one rate, and then lend it to someone else at a higher rate?

Wonderful. hehe.
 
Originally posted by: letdown427
Surely this is going to be riddled with people who use it to make money with minimal work?

I'm definately going to look into it, as surely you just borrow money from someone at one rate, and then lend it to someone else at a higher rate?

Wonderful. hehe.
Click to expand...

If nothing else, it's a damn interesting idea. I you look around the site, you realize that it does have some merits. As a lender, you would not be smart to lend all your money to one person. For instance, you could split 10K into 20 $500 loans and lend it out to 20 borrowers with credit ratings of A through C, at an avg interest rate of 12%. If defaults on 1 or 2 bring you down to a 9 or 10% interest rate, you are still making a good rate by today?s standards.

Now, who's got the balls to give it a shot?



 
Originally posted by: DBL


Now, who's got the balls to give it a shot?
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QFT FTW OMFGBBQPRWNS 🙂

I for one am lacking the stones to do this just now.

It is a fantastic idea though, as i think a sort of base rate will develop around the popular amounts, and then people who are willing to undercut will probably get more custom etc, it's a very good idea, and I'm very interested in it for sure.
 
So does this actually *show up* on a credit report?

Meaning, if I borrowed 20k to buy a car, does it show as an outstanding loan for that amount with the set payments when a *real* lender pulls a credit history?

 
Originally posted by: vi_edit
So does this actually *show up* on a credit report?

Meaning, if I borrowed 20k to buy a car, does it show as an outstanding loan for that amount with the set payments when a *real* lender pulls a credit history?
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According to their FAQ:

Can Prosper help borrowers build credit? Will delinquency be reported?

Yes. Because Prosper reports all payment activity to our credit reporting partner [Experian], using Prosper is an excellent way for new borrowers to establish a credit history while enhancing their group's reputation. In addition, delinquencies are also reported to our creidt reporting partner, so bad performance will affect a borrower's credit score negatively.

Will my performance at Prosper affect my credit rating?

Yes. Prosper communicates delinquency information back to our credit bureau partner, Experian. Your credit score will be adjusted accordingly, based on your loan payment performance.

For many borrowers, especially those with an NC or HR rating, taking a loan through Prosper is a great opportunity to establish or improve their credit rating, which can lead to better loan rates in the future.
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prosper.com uses NC to mean no credit history, and HR (high risk) for Experian credit scores under 539.
 
I decided to give the place a shot. I recently made a late payment on a card and I was jumped up to a 30% interest rate. I'll be able to pay the card off within 6 months, but I figured screw the CC company, let someone else get my interest money. I kinda like the idea of a real person getting my interest payments.


My listing

Anyone care to lend me money? 😀
 
Originally posted by: RaiderJ
I decided to give the place a shot. I recently made a late payment on a card and I was jumped up to a 30% interest rate. I'll be able to pay the card off within 6 months, but I figured screw the CC company, let someone else get my interest money. I kinda like the idea of a real person my interest payments.

https://www.prosper.com/public/lend/listing.aspx?listingID=956">My listing</a>

Anyone care to lend me money? 😀
Click to expand...

your listing isnt coming up
 
Originally posted by: new2AMD
Originally posted by: RaiderJ
I decided to give the place a shot. I recently made a late payment on a card and I was jumped up to a 30% interest rate. I'll be able to pay the card off within 6 months, but I figured screw the CC company, let someone else get my interest money. I kinda like the idea of a real person getting my interest payments.

My listing

Anyone care to lend me money? 😀
Click to expand...

your listing isnt coming up
Click to expand...

Fixed it now, I was trying to use the http link instead of the https link!
 
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