Wednesday, November 05, 2008

Is the Credit Crunch Affecting Prosper?

See Mapgirl's post about a delinquent loan and how she's not planning to lend out any more money in the near future. Big or small, lending just isn't that popular an activity lately!

4 comments:

mapgirl said...

Thanks for the link. FYI - DINKs are also pulling their Prosper cash out too.

Miss M said...

I never tried Prosper though I did check it out a few years ago and seriously considered joining. Guess I'm glad I didn't. Small scale lenders are hit harder when the economy tanks, one bad loan can wipe out all your other gains. When large banks are going under due to bad loans, you know it must be hard times for the little guys.

Anonymous said...

I’m giving up on Prosper. Even though I’ve only loaned out to grade A and AA, the default rate has climbed. I now have 2 loans in default/collection. One is rated A and the other AA. Because of these losses, I’ve end up losing money after loaning through Prosper for the last 12 months.

whitestone said...

For the piddling amount of gain you might expect over other investments, why go for the risk? You'd probably do better with a loan to a family member -- which always turns into a gift. So if your intention is gain, find another investment. If your intention is altruism, be prepared to pay for it.