Comments on: Are Person to Person Loans Guaranteed?

By: Ed

Ed — Thu, 31 Dec 2009 00:28:30 +0000

I’m looking for a long term mortgage secured by seasoned commercial real estate with an income stream in Salt Lake City.

By: Ryan

Ryan — Mon, 29 Dec 2008 12:16:02 +0000

Jan: Lending Club is the only company currently offering to sell notes to new lenders (Prosper has gone into a quiet period while they file paperwork with the SEC).

For Lending Club, I believe you need to be American because you need a Social Security Number; from their FAQ page:

If you are an individual and want to lend through Lending Club, you must be at least 18 years old and have a valid Social Security number and successfully pass our identity verification mechanisms.

You may try contacting them for verification.

By: Jan

Jan — Mon, 29 Dec 2008 04:30:58 +0000

Can Canadians invest in this?

By: Ryan

Ryan — Mon, 16 Jun 2008 11:14:44 +0000

Morgana,

Yes, this is something that can help both parties. Borrowers often get better rates than they would from banks, and lenders often get better rates by lending to individuals than they would from a CD or similar investment. When it works properly, everyone wins.

The borrower’s credit score, debt to income ratio, and other factors are certainly considered and I’m sure there are some people who do not get accepted for loans because of this. However, there are many people who have reported being able to get loans through P2P lenders such as Prosper even after several banks have turned them down.

I think a small loan from a P2P company such as Prosper is a great way to improve your credit score.

I mention Prosper several times, because right now that is the best option in the US because Lending Club has temporarily cut down drastically on their lending to new borrowers. Prosper also has a reputation for giving borrowers with lower credit scores more loans than other companies.

Whether or not you decide to go this route and apply for a P2P loan, I wish you the best and hope you are able to improve your credit score and make good things happen!

*As a disclosure, I sometimes write for the Prosper Blog.

By: Morgana, a curious potential borrower

Morgana, a curious potential borrower — Mon, 16 Jun 2008 07:41:03 +0000

From what I have read so far this sounds like something that could benefit and work well for both the Lenders and the borrowers. That is if this system really does work. I am curious if the borrowers that really need the help from this the most will be able to get a loan? Considering that a lot of the people applying would probably have low credit scores and or high debt to income ratio. I wonder if the companies take these factors into consideration and therefore lower the bar when it comes to a borrowers qualifications or if these loans are just as difficult to get and therefore no help to the people who really need them. A lot of the people that whould benefit from this are just people going through hard times but really want to work on and fix the situation they are in.

By: Ryan

Ryan — Thu, 28 Feb 2008 04:11:55 +0000

No Debt Plan, I understand. The loans are by no means a guarantee. However, I think there is promise in the fundamentals, so I am giving it a shot. However, at this point and for the foreseeable future, P2P lending will only be with money I can afford to take a little extra risk with. This is my “Mad Money.” Instead of playing the stock market or going to the casinos, I have a limit and that is all I am using. It’s much safer than placing it all on red and watching the wheel spin around!

By: No Debt Plan

No Debt Plan — Thu, 28 Feb 2008 02:41:37 +0000

P2P lending still makes me nervous. There are collection agencies, but usually they buy the debt for pennies on the dollar. Spread the loan over 100 people and you aren’t looking to get a lot at the end.

I may try it some day, just not today.

By: Ron@TheWisdomJournal

Ron@TheWisdomJournal — Sat, 23 Feb 2008 12:49:27 +0000

I’m still figuring it out myself. I put it $50 and selected a portfolio. It says my interest rate is 11.5%. That’s almost the S&P average over the past 80 years! If this thing works out well, I’ll be putting in a lot more.

On risk, where do you get 11.5% without some risk? There’s too much demand for “guaranteed returns.”