Any experience with prosper.com

[disneysteve]

Have any of you used prosper.com either as a borrower or a lender. I've seen it mentioned in a couple of threads and I'd love to learn more, good or bad. I would be interested specifically in becoming a lender. What costs are involved? How safe is it? What should I know or watch out for before getting involved? Thanks for any input.

[Bookie]

Re: Any experience with prosper.com

No personal experience, but I have an email correspondent who does. He was interviewed about his Prosper.com experience recently.

Here's the link if you're interested.

[jmjj215]

Re: Any experience with prosper.com

I have had six loans outstanding since May I believe. Just saw yesterday that one is about a week late.

*waving goodbye to $50*.

The average rate (not including this possible writeoff) on my loans is 13.45% -- only ever loaned to AA borrowers.

[disneysteve]

Re: Any experience with prosper.com

How do the payments get reported for tax purposes? Does Prosper.com send out some type of tax form (1099 or whatever)?

A very interesting concept, but I think I will continue to stay away. Although 13 or 14% sounds great, I'm earning that much and more from my traditional investments (mutual funds) which are probably a better risk.

[poundwise]

Re: Any experience with prosper.com


I like Prosper.

The interview linked-to above is worth reading.

[jmjj215]

Re: Any experience with prosper.com

How do the payments get reported for tax purposes? Does Prosper.com send out some type of tax form (1099 or whatever)?

A very interesting concept, but I think I will continue to stay away. Although 13 or 14% sounds great, I'm earning that much and more from my traditional investments (mutual funds) which are probably a better risk.

That 13 to 14% could be cut to a very little bit if this loan defaults

[Saving in So Cal]

Re: Any experience with prosper.com

I have never heard of this, so I went to the website. I was several screens into it before I discovered the program had the attributes of a multi-level marketing plan. My mind instantly closed.

[jmjj215]

Re: Any experience with prosper.com

What attributes are you thinking of?

[mbhunter]

Re: Any experience with prosper.com

I don't think it's really multi-level, but there definitely is an incentive for people to start up groups and recruit others to join their groups.

But many services are like this. Heck, ING is like that! You get a bounty for referring someone to ING.

[vishenda]

Re: Any experience with prosper.com

a lot of people are trusting prosper...it only reflects an excellent support team=0

[PRICEPLUS]

Re: Any experience with prosper.com

Sounds like an interestig place But it is not my cup of tea!

[poundwise]

Re: Any experience with prosper.com


There is nothing shady or dishonest about Prosper.com. While there are many legitimate questions one may ask when examining the concept of person-to-person lending in general and how Prosper works specifically, there is no reason to put it down or dismiss it. If it is, as the user above put it, not your cup of tea, then fine.

Person-to-person lending is an investment. It has potential risks and potential reward. It has to measured and judged. Even within Prosper itself there are different levels of risk and methods to mediate it. link

Personally, I am curious to see how Zopa, the UK service that started all of this will do once they hit the US. link.

[jmjj215]

Re: Any experience with prosper.com

5 current loans, 1 late, at an average rate of 13.45%. I knew there was default risk when I went in. I'm intrigued by the model of Prosper and curious to see what comes of all of it.

[TBH]

Re: Any experience with prosper.com

I've written a bit about Prosper on my blog:
link

[disneysteve]

Re: Any experience with prosper.com

Thought I'd bring this thread back up to the top. There is an interview with Prosper.com's founder in this month's issue of MONEY magazine. I think that lends some added legitimacy to the site. Maybe it's time to take another look.