So I heard about this place called Prosper.com, they call themselves “The online marketplace for people-to-people lending.” It sounds interesting but I was amazed at just how good their service is. I’m not interested in borrowing any money but I sure am interested in lending it, since I want to earn a higher interest rate than what Savings Accounts can offer me.
The great thing about this service is that it minimizes the risk of your borrower defaulting on their loan. If you want to lend out $1,000 for example, you could lend out $100 to 10 different people. The borrower pays Prosper.com a monthly fee, and Prosper pays you what you lent out plus interest every month as well.
Each borrower gets a credit rating (A-F) and describes what their loan is for. If I have some more time in the future, I’m going to take a closer look at it and throw some money in there and see how it goes. If the trial run goes welll, I’ll invest a bit more.
For once, I’m going to have my money work for me, instead of me working for the money.