Posted by Ryan (NC) on May 17, 2007 at 07:47:28:
I’ve piddled with their system a little, my only warning is not to fail for the common sob stories on the site… my cat ate my daughter’s binkie and I racked up 4k in CC debt at 30% trying to keep her happy ain’t a reason to loan someone money IMHO. Bad spending habits don’t fix them self’s over night and these type people will be right back in the same boat next month even after someone else bails them out.
With that said I do think there are decent returns in the AA, A, B, and in to the C range. Forget about the HR and lower range credit ratings regardless of the rate, these are unsecured loans! When this site first sprouted up I predicted that the HR’s etc would take HEAVY defaults, it took right at 2 months for that prediction to come true… buyer be warned, spread your risk and don’t get greedy for easy high rates of returns from prosper’s lower end borrowers.