Have you heard of the peer to peer lending program offered by Prosper.com? There are several Prosper.com reviews on the web, but this one cuts to the core and answers the question about whether there is a Prosper.com scam. Don’t miss this essential breakdown of a investment program that continues to grow in popularity on the web.
Prosper.com Reviews – What Is This Company About?
As stated above, Prosper.com is a lending website for people to borrow money from other people. Depending on the credit-worthiness of the borrower, the project they need money for, and the willingness of the investor to put money, is what shapes the basics in each agreement. A borrower with good credit and history will receive a higher rating than someone with delinquencies or other credit issues. That also influences the rate offered to investors.
Typically the rates are higher in this system than if you went to a bank or other standardized institution. However, many people cannot qualify for loans from a bank for varying reasons. The loans at Prosper.com are not secured and higher risk.
Prosper.com Reviews – Complaints About the Prosper.com Scam
Prosper has their own system for assigning grades to borrowers. The lower the grade, the higher the rate and the higher the risk. A few years ago, when the economy was first starting to fall into the sinkhole of doom, many of the borrowers at Prosper.com became delinquent and ultimately went into bankruptcy. Even many of the A rated borrowers failed. In fact, roughly 20% of the borrowers went into default. This took a terrible toll on Prosper’s reputation.
To compound the trouble, the SEC investigated Prosper.com for their investment practices and offerings. The SEC served them a cease and desist letter during the investigation. In 2009, Prosper was able to meet the requirements of the SEC and continued operating until the present day. The good news is that Prosper and many of the borrowers and investors learned some valuable lessons. Prosper has reformed their rules and regulations to better protect themselves and their investors. So, in order to be fair, there’s no Prosper.com scam. These are legitimate investment opportunities. Today, just over 1% of the loans go into default on average.
Prosper.com Reviews – Affiliate Opportunities
Aside from making money buy loaning with Prosper, you can also make money through their Affiliate opportunity. Since there are many people borrowing and loaning, you can help bring these parties together and get paid for doing it. The 3 sources that partner with Prosper for affiliate commissions are shareasale.com, adworkz.com, and commissionjunction.com (cj.com). We like Commission Junction and use them for various affiliate opportunities. You can generate up to $100 per borrower and $50 per lender sent to Prosper. Here’s the link if you need cash:
Prosper.com Reviews – Summary Prosper.com Scam
Due to the hard lessons learned by Prosper, this seems to be a decent opportunity for both borrowers and investors today. One can invest as little as $50 per loan, which helps keep risk down. Rates are not as high as in the past because of the tightening up of policies. However, as long as you realize the risk of an unsecured loan, you can make more money than buying a CD from a bank or a money market. The good news is that Prosper is very careful to avoid the fraudulent borrowers. If you want to participate in the affiliate opportunity as well, you can make money on the side.
Do you have any additional knowledge or experience with Prosper? Please add to these Prosper.com reviews or the Prosper.com scam reports below.