Now Prosper does an unbelievable job protecting lenders. The background/name check is the first step. Borrowers better be ready to show everything about them.

Deposited $1500, have $1800 in loans. How can that be? Profiting about $40 a month now and climbing.

I thought I was out of the woods when the rest 12 of my loans paid on time throughout the rest of 2008 and 2009, but now another one is over 60 days late and about to be charged off. If this one goes belly-up, as I expect it will (once the payments are this late they rarely catch up), I will earn about 2% if none of the rest of my loans assuming they all pay as scheduled until next March.

I suppose if I make 2% I’m still ahead of what I would have earned if that money had been in a savings account, but it’s nowhere near the return I hoped for, specially given the stellar credit rating of almost all of the borrowers I helped.

I would not recommend Prosper to anyone. People who have only been invested in the loans for a few months most likely have a rude awakening ahead of them. If you do succumb, be sure to invest only the $50 minimum with each borrower, because some of them WILL stop paying. I loaned about 1/8 of my amount to the AA borrower who made one payment so this completely devastated by return – my fault for being too trusting of someone with no debt, high income, and good credit.

Each month I get paid from the loans I reinvest into more loans. I now have a total of 19 loans with my original $500.

In short…I invested $500 and yet have $680 dollars worth of loans. Thats smart money.

I just deposited another $1000 last week. My goal is to make at least $300 a month short term and $2000 a month long term. Just 5 months in and I’m pretty happy having 25 loans and seeing a 16% return ($30/mth est).

I don’t think I’ll deposit anymore and just reinvest what the payments coming in. Remember the compounding affect of reinvesting. Plus you can always sell the note if you want out.

http://pluggedinfinance.blogspot.com/2008/08/updated-prosper-lending-strategy-tips.html

http://www.prospers.org/forum/prosper_lenders_retain_legal_counsel-t8015.0.html

Thanks for allowing me to leave this message.

The idea that your credit score is used as a foundation for getting a loan defeats the purpose! If the entire borrowing process is based on the credit score, why bother with Prosper just go to a regular bank or loan company. I think the service need s to be tweaked in someway. If I understood that the criteria was the credit score, I would have never bothered…now I have inquiry on my credit for NOTHING!

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