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Prosper

www.prosper.com/..
Category: Websites
Prosper is the world's largest peer-to-peer lending marketplace with more than 990,000 members and over $204,000,000 in funded loans. Prosper allows people to invest in each other in a way that is financially and socially rewarding. On Prosper, people list and bid on loans using an online auction platform. Borrowers list loan requests between $1,000 and $25,000 and set the maximum rate they are willing to pay. Individual and institutional investors bid in minimum increments of $25 on loan listings they select. In addition to credit scores, ratings and histories, investors can consider borrowers' personal loan descriptions, endorsements from friends, and community affiliations. Once the auction ends, Prosper handles the funding and servicing of the loan on behalf of the matched borrowers and investors.
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Far too risky
I think one is crazy to go online and start lending money out to complete strangers. I think there is far too much uncertainty when it comes to lending to begin with – just look what happened to our banking/financial system. Who’s to say this type of lending is less risky – any reasonable investor knows the risk far outweighs the reward here. For every investor that actually made money on the site, there will be many that lose their pants. Save yourself headaches and stay away!!

This review is the subjective opinion of an Investimonials member and not of Investimonials LLC
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This review is the subjective opinion of an Investimonials.com member and not of Investimonials LLC.
Spur20 Houston, TX

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Okay if you like "donating" money to people.
I've been a investor with this peer-to-peer website for a couple years now. The site is okay if you like "donating" money to people with no guarantee of return. It's more of a website about helping people rather than making money. After a couple of years, I'm just starting to break even.

Unfortunately, Prosper makes it too easy for individuals to get loans and they don't work hard to protect investors. You're dealing with all sorts of characters from honest to crooked. When things go bad Prosper hardly collects from those bad people that default on their loans and they leave the investors out to dry. Even if you try hard to analyze every borrower carefully, it's really hard to know their true living situation. The funny thing is that those with an "A" credit default too so nothing is guaranteed.



Prosper has had some issues with the SEC in the past and they are now restricted from operating in certain states. Some states now even require investors have high annual gross income and net worth in order to participate. As a Propser "Lender" you're really a purchaser of notes and not a true lender. If a borrower fails to pay their loan, you've basically lost out on your investment. It's like picking a bad stock or option. You have no recourse and you can't go after the borrower. The borrower may do bad and Prosper will shield and protect them. It's truly a risky investment and more about helping people than making money from them.

If you're interested in peer-to-peer investing, it would be safer to put your money in CDs, high yield savings accounts or bonds rather than Prosper. In Prosper, you're basically "donating" money to those in need of money hoping it will return. If Prosper wants to improve, it will have to be stricter on the borrower and more protective of the investor.

2.5 out of 5.0 stars

This review is the subjective opinion of an Investimonials member and not of Investimonials LLC
2 of 2 people have found this review helpful.
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Displaying 1-2 of 2 Total Reviews
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