Carnival of Personal Finance: Online Lending (and Earning) Edition

02.12.07 | Money | 0 Comments | by junger

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The Carnival of Personal Finance is up at 2millionblog, and like last week's, there are a couple of posts right up our alley.

While there are plenty of savings opportunities online, there are also many gateways to making money (legitmately) through lending. One of those is Prosper, an online marketplace for peer-to-peer lending.

Two of the posts in the carnival take a look at Prosper, one from each side of the equation.

RateLadder takes a look at the lending angle, wondering why money currently being lended doesn't earn interest.

Once money (it takes 4 business days) is in Prosper.com account interest is not earned. This includes any money not in loan bids, any money in a non winning loan bid, any money in a winning loan bid, and money in a loan pending review. Just to be clear I am not asking for faster, quicker, or less through loan reviews. It can anywhere from 2 days to 2+ weeks once a loan is closed until it is funded. So who is earning interest for those extended periods? Prosper.com is earning interest on OUR the float!

Apparently, Prosper recognizes that there is demand for earning interest and, according to the post, "is actively looking into ways that we can allow for interest to be earned on amounts deposited."

Money Under 30 tackles Prosper from the other angle — borrowing — offering 11 Tips to Get Your Prosper Loan Funded.

1. Be Honest
2. Keep It Brief
3. Sell Yourself
4. Think Forward
5. Include a Budget
6. Explain Your Credit
7. Describe Your Job
8. Include Your Photograph
9. Avoid Automatic Funding
10. Select a Reasonable Interest Rate
11. To Group or Not to Group

I've never used Prosper, but it seems like it could be a nice way to make some money. Any experiences to share?

(I submitted How Brick and Mortar Banks ARE Robbing You for the carnival.)

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