I
have to tell you how much I love Prosper.com. This
is a website where people request loans from people, kind of like an ebay
and Match.com combined for loans. I like it because:
1.
It's a wonderful way to circumvent the huge, multi-national, bloodless,
corporate banking system.
2.
I've lost enough sleep worrying about my investments on the stock market,
vulnerable to the vagaries of factors to which I have no control and precious
little knowledge. I've lost plenty there.
3.
I get to choose to whom I loan money based on the borrower's request and
financial status (confirmed by Prosper.com and borrower groups who stake
their reputations on the borrowers they represent). I can even ask questions
of the borrower and get answers before I bid on the loan. There are literally
thousands of borrowers to choose from.
4.
I only lend the minimum of $50 per borrower and am protected by diversification.
Of course, one can lend anywhere up the the requested amount.
5.
I can earn the percentage interest I choose - I've seen loans as little
as 1% interest and as high as 35%. I admit, I am taking a bit of a risk
by lending to those with lower credit ratings for higher interest rates.
I live on the edge. (Actually, I've changed my strategy -- I now lend
to higher credit rated borrowers for around 20% interest rate. Not bad.)
6.
It's great for borrowers who have been refused by banks for any number
of reasons. Prosper members read their stories and make their own choices.
Sometimes not enough lenders come through to fulfill a loan request, sometimes
they're competing for the honor of lending money.
7.
And people who click on the Prosper.com link, below, and eventually join
Prosper.com, either as a borrower or lender, get a $25 bonus (as do I).
This
site has been discussed on radio and TV shows; I first heard about it
on "Good Morning, America." I feel more in control of my financial
destiny and much safer than with the stock market or other investments.
I like helping people who, for various reasons, can't take the banking
route or prefer this grass roots approach. Prosper's office in San Francisco
is clearly posted on the site, the legalities of lending and borrowing
on line are clearly laid out, and customer service answers any question
you may have. I know, I asked a few. Check them out by clicking in the
box below.
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