http://moneysmartlife.com/borrowing-lending-money-with-prosper-lending-club/ Money Tips for a Better Life Tue, 16 Mar 2010 11:20:03 -0400 http://wordpress.org/?v=2.8.4 hourly 1 http://moneysmartlife.com/borrowing-lending-money-with-prosper-lending-club/comment-page-1/#comment-81624 Trace Gunsch Thu, 01 May 2008 22:11:57 +0000 http://moneysmartlife.com/borrowing-lending-with-prosper-lending-club/#comment-81624 Most investing approaches are a form of gambling. So are life, auto and health insurance, if you really look at them. The banking industry has a much better established procedure for verifying good lending candidates, but the first banks operated in a manner not too dissimilar from Lending Tree. I see P2P lending as a classical Disruptive Technology that will diminish a lot of loan officer jobs and bank profits, just like Expedia did to the travel agent trade. Sure a professional loan officer is going to make better judgments than me, just like a travel agent can make better selections about trip options, but I can learn, and I'll save/earn a great deal of money doing so. The Internet strikes again... Most investing approaches are a form of gambling. So are life, auto and health insurance, if you really look at them. The banking industry has a much better established procedure for verifying good lending candidates, but the first banks operated in a manner not too dissimilar from Lending Tree. I see P2P lending as a classical Disruptive Technology that will diminish a lot of loan officer jobs and bank profits, just like Expedia did to the travel agent trade. Sure a professional loan officer is going to make better judgments than me, just like a travel agent can make better selections about trip options, but I can learn, and I’ll save/earn a great deal of money doing so. The Internet strikes again…

]]> http://moneysmartlife.com/borrowing-lending-money-with-prosper-lending-club/comment-page-1/#comment-74264 Anonymous Mon, 24 Mar 2008 04:58:07 +0000 http://moneysmartlife.com/borrowing-lending-with-prosper-lending-club/#comment-74264 My impression of Prosper.com is that it's a form of gambling. You, the lender, take a considerable risk depending on the borrowers credit. Most of us aren't as good as loan officers, and we're taking the chance of losing our principle for just a few percentage gain. It's a win-win for Prosper, of course, but for the lenders I believe there are less risky investments. Of course, you could just lend to the AAA people, but then you're just getting CD rates, and that's no fun at all. My impression of Prosper.com is that it’s a form of gambling. You, the lender, take a considerable risk depending on the borrowers credit. Most of us aren’t as good as loan officers, and we’re taking the chance of losing our principle for just a few percentage gain. It’s a win-win for Prosper, of course, but for the lenders I believe there are less risky investments. Of course, you could just lend to the AAA people, but then you’re just getting CD rates, and that’s no fun at all.

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