Comments on: Borrowing Money from Social Lending Networks

By: Jonathan

Jonathan — Mon, 13 Apr 2009 01:16:41 +0000

Indeed. Having done the research, and understanding the business model, I was confident that I’d come out better in the end. I was ecstatic when the loan closed – not just for the reduced rate, but for doing my homework, taking the risk, and having it pay off.

By: Jonathan

Jonathan — Mon, 13 Apr 2009 01:14:51 +0000

This is one thing that attracted me to social lending…cutting out the bank. I’m already avoiding the unsavory megabanks by doing business with a credit union, but even they couldn’t match 7%.

By: Jonathan

Jonathan — Mon, 13 Apr 2009 01:12:24 +0000

Phil nailed it. (I have been out of town since Friday and have been slack with blogging.) I am hesitant to put up anything against my home.

By: Jim

Jim — Wed, 08 Apr 2009 16:47:50 +0000

As an investor, that’s the biggest risk. People can walk away and you have to rely on the collections process, but I think the checks on the front end help reduce this from happening often. The minimum credit score, 660 I think, is at least a reasonable starting point. One thing to remember, to Fair Isaac the median score is 723 and not 575 (the midway point between 300 and 850).

By: Phil

Phil — Wed, 08 Apr 2009 15:25:25 +0000

One reason is that the loans on Prosper or Lendingclub are unsecured. If you decide not to pay back the loan, your credit would take a hit, but you wouldn’t lose your house. Unfortunately, several people on Prosper, to whom I’ve lent money, have gone this route.

By: Jim

Jim — Wed, 08 Apr 2009 13:47:57 +0000

Lending Club claims rates around 7.88% APR on their homepage, Prosper can’t fund loans right now until it exits a quiet period.

By: Lind

Lind — Wed, 08 Apr 2009 13:40:54 +0000

I’m looking for a loan to buy out my car lease and will try Lending Club. I’d rather give my interest to other people than to the greedy banks that got us into this mess. Do you know how Lending Club’s rates compare to those from Prosper’s bidding lenders?

By: Anonymous

Anonymous — Wed, 08 Apr 2009 11:52:08 +0000

Oops it is interesting to know of such things. In the end its anyway win-win game, but certainly the bidding made your life much easier.

By: JS

JS — Tue, 07 Apr 2009 23:18:56 +0000

Why don’t you tap the HELOC? With HELOC usually the rate will be around 4% at this moment. Plus the interest is tax deductible.