I've been debating the idea of doing peer-to-peer lending. I saw this question and am curious:

  1. What kind of success/failures have people seen from P2P lending?
  2. Some sites require their users to have a certain level of income before joining, I think Lending Club required you make an annual salary of at least $70k and have something like $200k in liquidable assets, in order to join.

    Has anyone joined w/o meeting those conditions? Did it affect the experience at all?

  • Double check the sites to make sure you can even lend on them based upon where you live. In the US the state laws are inconstant and not everyone can be a lender on these sites.
    – anonymous
    Commented Sep 6, 2011 at 13:08
  • I see the question you linked to. How is this not the same question as: money.stackexchange.com/questions/4830/… ?
    – Alex B
    Commented Sep 6, 2011 at 18:00
  • @Alex B: they are similar, but my first question was about specific success/failures, not just whether it is a good/bad idea. The second part is about the joining conditions, since the sites have criteria in their Terms of Use, that restrict users that could join. I've heard from Lending Club that its just a guidelines, but when it comes to money and legal, I don't like taking chances. So I wanted to know if anyone else had joined and had any trouble, if they joined w/o meeting their financial requirements. -thx :)
    – BotNet
    Commented Sep 9, 2011 at 5:52

3 Answers 3


Before you jump into Prosper, I highly recommend you to check out prospers.org (not affiliated with the site) to hear about actual experiences of lenders.

Bear in mind that many of the borrowers on these social lending sites have already been passed on by the banks, and the "credit score" Prosper assigns to them is absolutely worthless. I've done some lending on Prosper a few years ago and stuck mostly to borrowers that Prosper rated A or AA, many of whom turned out to be complete deadbeats. Some never even made a single payment, and Prosper hardly did anything to attempt to collect from them.

So beware.

  • 1
    I was leaning more toward Lending Club
    – BotNet
    Commented Sep 9, 2011 at 5:49

I funded about a half dozen loans. All were AA or A rated. All but one paid me. The one who stiffed me wiped out all my profit on the others. I ended up with a tiny negative return.

  • This is what I kind of wanted to hear. I'm curious how accurate their reasons for needing the loan are.
    – BotNet
    Commented Sep 9, 2011 at 5:49

Read the prospectus carefully. In the case of Prosper, you're really making a loan to Prosper, which is in turn linked to the borrower's payments.

Also, the rates are really high. If I was looking for money, I'm not sure why someone with "AA" credit would ever go with a Prosper loan.

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