I’m rather risk adverse when it comes to my finances, but the idea of person-to-person lending has enough reward behind the risk for me to take some chance on the newly-minted credit market.
My Prosper plan is to handpick one listing per month to fund. I transfer $50 from my paycheck to Prosper and decide on a listing that I think is worthy. Most often I chose folks in the A or AA category (though I recently went as low as C) and I pick people who are trying to get a lower rate on their credit debt or who need smaller amounts of money for important things like house repairs, doctors bills, etc. I try to stay away from business loans.
Here’s an update on how my Prosper accounts are doing (none have defaulted yet, knock on wood.)
Total Account Value: $357.43
Amount Invested: $350
Average Interest Rate: 14.76%
[[6 loans out, $50 each]]
|Loan Title||$|| Interest
|Paying off/ Consolidating Credit Cards||$50.00||16.00%||C||$0.00||Current|
|Let me pay you instead||$50.00||17.00%||B||$1.06||Current|
|Termites have destroyed my home, †||$50.00||15.55%||A||$2.21||Current|
|Paying off Adoption Credit Debt||$50.00||19.33%||B||$2.11||Current|
|Help Me Study Abroad ** Relist #2** †||$50.00||13.00%||B||$4.66||Current|
|Emergency Home Repairs – Winter †||$50.00||7.00%||AA||$5.06||Current|