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Peer to Peer Lending

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I just read an article about Peer to Peer Lending on MSN Money and I was interested in hearing if anyone hear has used this type of lending. They mentioned such companies as Prosper, Green Note, Circle Lending and Zopa.

Anyone have any experience with Peer to Peer Lending? Opinions? Advice?

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I also check this out, up front seems a good idea

private lenders "bid" on your loan, and at what % interest they "charge" ALL are checked very through(sp)lenders & borrowers , your scores have to be rather good,

borrowers are also checked out for risk, banking ect and given a grade ..these are short term loans,( under 3 years) you also have to agree to automatic bank withdraws and other legal stuff

how it works

you may have 4-5 "lenders at differnet rates" your "score" will be shown to the lenders a-b c ect

1 you want 6000.00 @ 8%

A will cover 1000@ 6%

b will cover 2000 @7%

c will pay the 6000 but at 10@

this keeps going until you have enough "lenders" to fund your loan

you will be able to "tell your story as to why you need the money" and why lenders should take the risk on you,

you make One payment and it is divided among your "lenders"

as a private "lender" you can make money but the risk is that your "borrower" cant pay it back either, these peer to peer sites are meant to get rid if the "high fees" other lenders charge, and connect people helping people,

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