Prosper Lending Club

Prosper Lending Club

Ok, thought I would give it a try. Made my first $100 deposit on Friday and funds should be available this week. Prosper is basically a lending club that either gives you access to loans that are a little better rates than you could get from banks and credit card companies or gives you the opportunity to loan your money to other consumers that need the money, giving you a better return on your investment than any savings account, CD, or money market account.

As with any investment that yeilds a larger rate of return, there is also risk involved. The risk you have is the person you loaned the money to not paying back the loan. Prosper has in place methods to prevent this such as reporting to credit agencies and debt collection agency’s, however there is still risk. Just like investing in stocks you should diversify your portfolio. Don’t loan all your money to the same person, spread your money around in different risk categories.

Final thing to remember when joining Prosper is it’s not a get rich quick program. It should be viewed more as an investment opportunity. Most loans on Prosper are paid back over a three year period, so when you loan your $50 to someone you won’t see the money until the loan is paid back in full, which could take up to three years. If you are planning to use Prosper as a savings account you might want to think twice.

If you are interested in joining prosper click below. If you use my link we both get $25 when you fund your first loan.

I’ll keep you updated on my progress at Prosper!