What is peer to peer lending?
Have you ever heard of peer to peer lending? Peer to peer lending is where you lend money to another person. The benefit of doing this is that you will get the interest payment sent to you as opposed to simply putting your money in the bank. Think about it, if you make a lousy .5% by saving money at the bank and you can make 6-9% by lending money to other people, which one would you choose? My guess is that you would rather make the 6-9% and that is why you need to participate in peer to peer lending.
How do I begin peer to peer lending?
There are really only two places that you should go to in order to start doing this. Those two places are Lending Club and Prosper. These are two websites that have been doing this for a while and more and more people keep going to them. Out of the two, however, I would suggest going with Lending Club first in order to get an idea of how it all works and then check out Prosper.
The key to making the kind of money that you want is that you must diversify your investment portfolio. Since both of these websites will break down loans based on Credit scores, delinquencies and even amounts, you can really diversify in all aspects. It is imperative that you do this because putting all your money in one place can be a terrible financial risk to take. Just keep in mind that all investments can turn on you at any time, but both of these are worth taking a look at and trying.
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