Learn To Lend

What you should know about bidding a Prosper loan too low The competitive nature of the bidding process gets some lenders to bid down interest rates on Prosper to the point where the loan isn’t worth the risk of reward. In the heat of the moment lenders are more likely to make an offer to fund a loan so they can get a piece of the listing they’ve been watching & ...

What you should know if you want to be a peer-to-peer lender Lending money on sites like Prosper & Lending Club can be a great way to diversify your investments if you take the right approach managing your downside risk. Who doesn’t want to maximize returns and reduce risk, but it’s easier said than done right?  A recent article from MarketWatch offers some advice to lenders on how to go ...

Prosper CEO and Founder Chris Larsen reported that about 75 percent of all borrowers had AA credit when Prosper launched in 2006 and now almost 95 percent are in that AA category. With only 5 percent considered subprime borrowers, this is a positive trend for people looking for quality investments via peer lending. The trend of borrowers with higher credit ratings on Prosper will hopefully translate to lower risk loans, and ...

Prosper, Lending Club, & Zopa right for different types of lenders You need to understand the model you're utilizing in peer-to-peer lending. They all have nuances and differences. [Mark Meyer, director of the Filene Research Institute] Depending on the level of risk you’re willing to accept and the amount of return you’re targeting for your loan, you’ll want to consider different person to person loan sites: Lending Club, only those with ...

If someone on the street asked you to borrow money, what would you want to know before lending them cash? If they don’t have the right answers, they don’t get the loan!  It’s the same case with borrowers on sites like LendingClub and Prosper, don’t lend them any money unless they’ve met all of your criteria for a borrower. Many times people asking for money on peer lending sites forget ...

Consumers using peer-to-peer lending sites instead payday loans "It [peer to peer lending] opens the doors whereas others might be closed," said Greg McBride, senior financial analyst at Bankrate. "It's a low-cost alternative, even for someone with a blemished credit history. Peer-to-peer has a lower cost than resorting to a payday loan." VirginMoney formalizes the lending agreement between two people, friends or family members, by providing loan documents and setting up payment ...

Prosper competing with credit card companies and traditional banks "We're all focused on competing with the credit card companies and traditional banks" Chris Larsen - chief executive of Prosper According to Jean Garascia, a Javelin Strategy & Research analyst, between $300 million and $400 million has been borrowed through peer loans in the U.S., in comparison to the total $880 billion credit market. Renaud Laplanche, founder and chief executive of Lending Club ...