Proper.com and others

I almost pulled the trigger on this a while back. One thing I noticed from reading reviews about alot of people that do it is not to put all your eggs in one basket. Most successful people have smaller amounts but multiple loans out, because one of them will default eventually but your others will make up for it.

Proper.com is a publisher?

Last month I decided to try out lending club. Loaded $1000 into my account.

I hand picked all my loans and tried to stick to these rules

- loan purpose: debt consolidation only
- max DTI 20%
- own their own home
- min 3 years of employment
- i excluded all loans in california and nevada
- always invest the minimum ($25)

If you use lending club make sure you filter out loans that havent been reviewed already. A lot of the loans that aren't approved end up getting rejected and you have to reallocate your cash in new loans with is a pain.

I expect to make money and it's kind of fun being able to pick your own loans. The money doesn't earn anything in the bank anyways.

I've used Lending Club as well.

Only put in $250 to try it out; averaging about 9% return.

One thing to keep in mind is that most loan terms are 36 or 60 month, that means the money you put in has no liquidity. Considering that and the risk involved with defaults, I don't think 9% is good enough.

Quote from Formless : Proper.com is a publisher?

Think OP meant Prosper.com... similar to a lending club.

Interesting article related to micro lending here [mrmoneymustache.com]

Comments on that article are helpful for those looking to use successful filters for their loans.


No micro lending for me yet, but thinking about getting into it.