Prosper Review – Should You Take the Social Lending Plunge?
When you consider any financial transaction, it’s always good to start out with a negative bias. In other words, it’s good to actively look for problems and search for what might go wrong before you sign on the bottom line. I always assume the worst and look for landmines. If I don’t find anything, I rest easy. My Prosper review is no different. Let’s get started.
What is Prosper?
Prosper.com is a peer to peer lending company. It isn’t a bank but more like a match maker. They take individual people who want to invest and put them together with people who need to borrow money. They have over 1.66 million members and service $474,000,000 in
loans. The loans range from $2,000 to $25,000 for 1, 3 or 5 years. The loans are fully amortized too – they are not interest only loans. Also, loans can be paid off early (fully or partially) without any pre-payment penalty.
Prosper was actually the very first peer-to-peer lending company. Countless numbers of borrowers have used Proper to save millions in interest and as just as many people have earned multiples of what they otherwise could in the bank. (But be cautious – investing in Prosper in not like investing in the bank. More on that later.)
The screen shot below is from their homepage. You can see that it’s appealing both for investors and for borrowers.Source: wealthpilgrim.com
Category: Payday loans