Unfortunately, P2P lending is suffering. Loans have decreased as lenders of all types have become more tight-fisted, and good credit is more important than ever. More loans are going to borrowers with good credit - either because more of them need loans or because lenders are more picky these days.
Prosper.com, one of the pioneers of P2P lending, is also slowing things down as they temporarily halt all new loans. Prosper.com is working with the SEC and evaluating new secondary market programs.
While P2P lending has been fantastic for borrowers, lenders are starting to grumble. Loans made at sites like Prosper.com are unsecured loans, meaning there's no collateral to protect lenders. Borrowers will damage their credit if they default, but some default anyway.
Further reading:
Can you talk about ? A friend of mine recommended it as a much better site than Prosper, and it is approved by the SEC.
Can you talk about Lending Club? A friend of mine recommended it as a much better site than Prosper, and it is approved by the SEC.
Ken,
LendingClub is similar to Prosper but your lenders tend to share an interest or characteristic with you. We’ve got some basic information about borrowing there on our Lending Club page.