After reading the good and bad situations from other PF bloggers I tried out one of those Lending Club offers (aff.) that gives you $25 to lend to someone if you sign up. If I added money to the account ($500), they would give me more ($50). But I am a Nervous Nelly and decided to take the free $25, and not add any more, and see what would come of it.
I didn't have huge criteria for who I would lend to. My main concern was to make around 10% and I didn't want to loan to anyone who had a request larger than 5 thousand. I found a borrower who wanted 3 thousand and the score was a B - or just under a 10% return.
So far after 4 months of payments they are doing fine in their repayments and I'm slowing making a few more free cents off of the free $25 I started with. These loans are for 36 months though and this return on my free money is slow going.
The one thing I have to remind myself, which I didn't do when I was collecting comics, is that these investments take time. There will be ups and downs, payments might get behind, they might pay off the note early and I don't get the full effect and so on. No matter what, I need to remember it is not what I think I might have in my hand but what I already put into the investment. In this case, I only signed up and the rest was free money.
Would you try one of these peer to peer lending sites - to either borrow or to lend?