Anyone here ever loan out money through Prosper or Lending Club?
 

Experiences?

I have known about p2p lending but never participated. The key seems to be about contributing small amounts to many loans for diversification.

What happens when they don't pay back the money can they legally go after them to return the funds lent?

I think I read somewhere that they employ a collection agency to attempt to recover some part of the funds but I would just factor in the default rate as part of the risk as long as you are making money and spreading your risk amongst many many loans at $25-$50 per loan. Prosper actually publishes default rates here and return even after default... https://www.prosper.com/invest/marketplace-performance/

I just put a $1000 in last month to LendingClub and it is a total pain to get int invested. Takes forever.

Wow look down at the long term performance... ouch!

invest it all in one person :-) hopefully they don't stop paying.

Haven't invested in peer to peer but I've donated quite a bit into Kiva.org, kinda the same with no return besides the warm fuzzy feeling. :1orglaugh

I started to play around with one of those a few years ago. I had a couple default; they were mostly "A" rated. I reinvest as soon as there is $25 in my account. I've made a little under 3% return to date. Not bad for very little work and no knowledge required.

It sounds better when I say 3% return instead of $29 profit. :)

No way.

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3% doesn't sound THAT great, especially if some work was involved... you would have had 10%+ annual return by just investing in sp500 index fund, with zero work involved...