02.27.07
Forbes article on Prosper
Here is an interesting story from Forbes magazine that appeared on Yahoo!Finance. It’s about the peer-to-peer lending site, Prosper.com.
The article is very balanced, I feel, noting that unsecured lending is dangerous, and also noting that Prosper has an older rival in England. Among the positive things the article has to say:
- Lenders can make more money on Prosper than they could with a CD at their bank.
- Borrowers can pay less for a Prosper loan than they would with a credit card loan.
- Lenders enjoy the personal satisfaction of helping out someone in need.
Personally, I invested $500 in Prosper seven months ago, and now my account is worth $540. Not stellar performance, to be sure, but a good bit better than a CD.
