In the right-most column, I’ve added a new ad from Prosper.com (I really like their ads, they’re so pretty). I was contacted by Prosper about running this ad through the end of December.
I don’t want to run ads for just anybody, but I feel ok putting one up for Prosper–here’s why:
It’s a legitimate site. It gives some people with a bad score a chance to borrow money (of course, if they’re not going to pay it back, they’re still screwed). It doesn’t charge payday loan interest. And it gives lenders a chance to earn some money and help people out.
Are there risks? Yes. James and Miel at DINKSFinance.com lost some money in the subprime mess by lending to high-risk borrowers. Their loss was $300, not too bad considering that they should be making a fair amount of money on their other investments. However, it’s good to remember that even on Prosper you won’t necessarily get repaid.
Another big reason I thought it’s worthwhile to advertise the site is that lots of people from around the blogosphere are having good experiences with it. Here are some that I came up with:
- Tricia at Blogging Away Debt borrowed money with Prosper and has been aggressively paying it back! She has a whole set of posts about her experience.
- Likewise, LazyMan(andMoney) has a category for his Prosper lending, his reasons and experience.
- Frugal Zeitgeist went through some of the borrowers on Prosper and summarized the types of things that lead low-risk (some high-risk thrown in) and high-risk borrowers to…borrow (my vocabulary is a bit off today).
- Dawn at Queercents experimented as a borrower. She even got some thank-you notes for being responsible (though not in the post I’m linking to).
- American Consumer News looked at why Prosper isn’t necessarily better than a good index fund but has a better return than your average savings account (even the good ones).
(If you’re not on here, sorry, I just didn’t remember.)
Do I plan to lend or borrow on Prosper. Not right now. I don’t want more debt. And I don’t feel entirely comfortable with the idea of making money directly off another person. Other parts of my brain point out that they’re probably getting better rates and whatnot. As I said , I’m not comfortable. If you want to sign up I don’t see why you shouldn’t.
Disclaimer: If you use the link in the button, I’ll get $25. But here’s the good part–so will you. So why not use the link and we’ll both be happy. Otherwise kittens might cry. 😉 I mean what? Why am I still talking? You do what you want. 🙂