Has anyone used Prosper.com
 

I repeat, has anyone used www.Prosper.com? It looks completely safe to give my money to complete strangers with piss-poor credit ratings, but I want to know if something should deter me from 24% returns.

common sense??

I suppose you could investigate the portfolio theory on this, but I suspect you would have to own a lot of loans at 24% interest to even out the credit risk, even if you could evaluate the risk accurately from afar.

Perhaps better returns than Vegas or the lottery, though.

Fascinating idea. I'd stay away, but it's interesting.

24% returns. I don't even have to read the site to know it is a high risk type deal.

I think you guys need to turn your sarcasm detectors on.

I don't get it. Is the web site a joke? It looked like a serious business.

I'm saying ParrotHead wasn't seriously asking for advice. Or maybe he was and I just always assume he's sarcastic.

Yes, seeing those proposed returns catches your eye, but if you look at some of those stories, they look like sub-subprime. And how bad are some people's scores if they're willing to pay 20% + to consolidate?

First, folks, stop spending money like you have it - because you don't!

Oh yeah I knew Parrothead was being sarcastic, but I still made a serious comment about the business. It does look interesting to me.

I have a neighbor that has done it. He does not loan out large amounts of money, usually in the $500 range...he says that he has done about 6 different deals and he has been paid back on every one of them. From what I understand, the thing that helps is he is able to be very, very picky on who he chooses to loan out the money. Not every loan is 24%...some of them are as low as the 10% range depending on the guy asking for it and his credit history. He has enjoyed doing it.

And yes, Parrot, I am still considering the $7,000 loan that you need financing for...I feel bad though that it has a 33% interest rate on it--man, your credit stinks. Give me a bit more time though and I will sign up to help ya.