Social Lending vs HYIP

United States
March 31, 2013 11:39am CST
I know there are a lot of people on here that are very active in HYIP, some of you have been paid and some of you have lost money. This is all part of the risk people take when investing and I am not going into what i think about HYIP. There is something new in the world called social lending. After the 2008 world market crash banks have started to tighten up their lending and many people are struggling to get approved and when approved the rates tend to be really high. So along came social lending where people borrow from regular people like you and me. Sites such as The Lending Club have done over $1bn in loans in 5 years and growing at crazy rates and recently sites like Prosper are catching up. The lowest amount one can loan is $25 and open to US residents only. It is similar to Kiva but has returns for the lender. I know the UK and Australia have recently gotten a few similar sites and I myself have started to invest more in these sites and have started to see a good return. My portfolio is low risk and I am averaging 12.13% return/year which is far higher than any bank would ever offer me. Anyone else ever loaned or lent from to/from these types of sites and what was your experience?
4 responses
@mariaperalta (19094)
• Mexico
31 Mar 13
I have never likes to gamble. Even in vegas where I lived for years. But I know people who have gambled on hyip sites and swear theymake money. Just not for me..
• United States
1 Apr 13
So what about social lending?
• Mexico
1 Apr 13
I honestly am lost on that one. Please explain those to me.
• United States
1 Apr 13
They look very interesting. I think I will add them to my portfolio and invest some money . I love to make money work for me.
• United States
4 Apr 13
Try and get into their affiliate program as you make $100 for each borrower you refer and $50 for each lender.
@varier (5699)
• Indonesia
1 Apr 13
Meh, this one is also not for me. I am not from USA, hence I am an alien, hence it's not available for me :P. But come to think about it, if it's really peer to peer lending, how do they verify the legitimacy of each person? I kinda got lost on that one.
• United States
4 Apr 13
There is a bunch of paper work that one needs to fill out to verify everything.
@MoonGypsy (4613)
• United States
31 Mar 13
if i did involve myself with those types of sites, it would be only for investing. i wouldn't do any borrowing or lending.
• United States
31 Mar 13
I really enjoy their affiliate programs as it has netted me $1,000 this year so far. It is good to not have to borrow and rather be a lender but also good to know such sites are out there if you need.