We have recently ran across a website called Prosper.com offering peer-to-peer loans. It’s without a doubt an interesting concept, which allows computer users to loan out real money to other website users. The lenders offer bids in a reverse auction, while the loan prospects are rated based on their credit rating. As an investment opportunity, the website allows users to buy and sell their loans, which is a great feature. One nice touch is the ability for the lender to spread their investments across a pool of borrowers that meet a certain criteria. As for the borrowers, if you cannot get good rates at a bank, this may be a place for you, but do not expect low interest rates here, individual lenders want to be compensated well for their risks, especially if you do have poor credit.

Feel free to check it out! Just don’t abuse it’s simplicity!