Prosper.Com: Make Money Lending Money
Lending money can be a great way to earn passive income. Take credit cards for example. If you’re like most people, credit card companies are earning passive income off you right now. How much interest do you pay on those credit cards of yours? 8%? 10%? 21%? Not a bad return for the credit card company.
But how can you capitalize on lending money? I’m willing to bet that you don’t have hundreds of thousands of dollars to properly diversify a debt portfolio nor the resources to properly collect payments. That’s where Prosper comes in.
Prosper.Com helps potential lenders make money by matching them up with potential borrowers and the minimum required to invest is only $50.
Here’s how it works:
- Borrowers sign up for an account with Prosper.Com
- Prosper verifies their identity and grades their credit on a scale that ranges from AA to HR (High Risk)
- Lenders bid on loans by stating what rate of interest they’ll accept
- Prosper combines the money from all the successful bidders to fund the loan
- Borrowers have the money automatically withdrawn from their bank account every month
- Lenders have the money deposited into their bank account every month
Prosper takes care of all billing and collections if necessary. All you have to do is diversify your portfolio to minimize your risk..
In addition, you can earn a great rate of return. I’m watching a loan now for someone with AA credit. It’s almost completely funded and the lenders are getting 18% interest!
If you’re interested in learning more about investing with Prosper.Com, you can read more about how to manage your risk on Prosper.
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