2 Guest Posts Today From Prosper Members.
Lending on Prosper is Exciting!
Sure I could invest money in CD’s, mutual funds, bonds etc. But how boring is that?!?! With Prosper, I feel like I am running my own business – the bank of ME. Except, I don’t have to deal with hiring any employees, answering the phones, or doing much work.
I wake up each morning excited to see if my bids were accepted, or if that borrower who is 2 months late on his/her payment has finally caught up. I like finding money available to lend in my balance statement, so that i can find yet another loan to fund.
The educational value of Prosper is also great. I am learning a lot about my own credit and what it means to me in my life. Since I am studying loan applications all the time and creating my own ranking system, I now know what I must do to make sure I would lend to myself (which I totally would).
If I were you, I would join Prosper in a heartbeat. I tell all my friends and family about it and hopefully they will someday take my advice.
Bid or Not to Bid
Bid or not to bid? Biding low just to beat out the another lender on a $50 dollar bid? Sure why not reduce your rate of interest and diminish your average rate of return while increasing your risk. One could say it’s better for the consumer (which is true), but we are all here to prosper. It is funny to see so many lenders out bid each other for 0.01%. Granted the borrowers that write a better ads will attract lenders, but the art is looking beneath the ads. What do people really need the loan for? Are the reasons to borrower founded? Do they have a business plan or a way to stay out of debt??? The people who don’t offer a high enough rate will not be funded; they will learn; and re-list to attracted new lenders with an appetite for the higher risks that their stories with holes present.
So when bidding make sure you bid in small increments because your money is at risk once the loan is funded!!!