In a piece about personal loans making a comeback, SmartMoney says the following:
Peer-to-peer, or p2p, lending web sites like Prosper.com and LendingClub.com enable consumers to be both borrowers and lenders. If you have extra money to spare, you can consider lending to a consumer in need, with the option of spreading your risk by lending very small amounts (say, $50) to several different borrowers. Each borrower includes with their request a personal profile (not unlike those at a dating site), which explains why they need the money and how they plan to use and repay it. Rates vary depending on the borrower’s credit rating. At LendingClub.com, they range from 7.05% to 21.21% and at Prosper.com, from 8.65% to 25.6%.
I've been thinking of trying LendingClub with a bit of money (maybe $1,000 or so) to see how I make out. If nothing else it will make for some interesting writing, huh? Besides, if I could earn anywhere near 7%, that would be GREAT!
Anyone else use p2p sites to lend/make money? If so, let me know your thoughts.
And for the rest of you, remember that you can get $25 free from LendingClub for opening an account with them (which is free to do) as a new user. Here’s how it works…
1. Visit Lending Club using this link.
2. Open and activate a lender account (which means you hit "invest" when selecting what you want to do with LC -- I'm not encouraging anyone to borrow money.)
3. The $25 will be automatically deposited in your account shortly thereafter.
It's that simple.
A couple notes:
1. There are some eligibility requirements for opening a Lending Club account (must be 18, certain states excluded, etc.), but those should quickly become apparent when you click through.
2. The signup page won’t say anything about the bonus, but they’ll be able to track and credit you using the special link in this post.