I'm really confused and just trying to see the benefit here. Finding investors is always good I suppose, but when taking out a loan why would anyone used prosper.com over a standard bank? Interest rates seem extremely high. Can anyone fill me in? I read a wired article and it states that many of the loans have not been paid back which probably means that as expected, people with poor credit are taking out loans there and not making the monthly payments. Again, why use this service if you need a loan outside of if you have intentions to scam some people?
hmmmm im not sure to be honest .... i suppose they are more aiming towards the deperete and will chage stupid rates and they will get them !
Wow, didn't know such a site existed until this thread. So are these just individuals loaning to and borrowing money from other individuals?
I guess i've just never had an issue with getting a small loan from a bank. I've done it before to get some medical bills covered, but I think my interest rate was around 8% or so. I thought that was fairly high, but dang, some of the people are paying 20%+ which just seems utterly ridiculous.
If you've got really bad credit, getting any kind of loan can be hard. With prosper they can get a loan, and those loaning the money can hope to get a good return on their money. Since the loans can be split into many pieces, the investors giving out the loans can spread out their risk on many different people.