Borrowing Without Bankers

What's Hot


2 Types of Black Marks Might Vanish From Your Credit File SoonBorrow

This Free Software Brings Old Laptops Back to LifeMore

6 Ways the Obamacare Overhaul Might Impact Your WalletInsurance

21 Restaurants Offering Free Food Right NowSaving Money

7 Dumb and Costly Moves Homebuyers MakeBorrow

House Hunters: Beware of These 6 Mortgage MistakesBorrow

Beware These 12 Common Money MistakesCredit & Debt

Obamacare Replacement Plan Gets ‘F’ Rating from Consumer ReportsFamily

Where to Sell Your Stuff for Top DollarAround The House

30 Household Uses for Baby OilSave

25 Ways to Spend Less on FoodMore

Nearly Half of Heart-Related Deaths Linked to These 10 Foods and IngredientsFamily

The True Cost of Bad CreditCredit & Debt

17 Ways to Have More Fun for Less MoneySave

14 Ways to Maximize Your Social Security ChecksGrow

10 Ways to Save When You’re Making Minimum WageSave

Boost Your Credit Score Fast With These 7 MovesCredit & Debt

7 Painless Ways to Pay Off Your Mortgage Years EarlierBorrow

The Most Sinful City in the U.S. Is … (Hint: It’s Not Vegas)Family

10 Companies With the Best 401(k) PlansGrow

8 Ways to Take Control of Your Finances — and Be HappierGrow

This Scam Now Tops ID Theft as the No. 2 Consumer ComplaintFamily

5 Surprising Benefits of Exercising Outdoors in WinterFamily

14 Super Smart Ways to Save on TravelSave

New Study Ranks the Best States in the U.S.Family

Thousands of Millionaires Moving to 1 Country — and Leaving AnotherGrow

The Rich Prefer Modest Cars — Should You Join Them?Cars

Strapped for College Costs? How to Get the Most From FAFSABorrow

6 Overlooked Ways to Save at Chick-fil-AFamily

Secret Cell Plans: Savings Verizon, AT&T, T-Mobile and Sprint Don’t Want You to Know AboutFamily

6 Healthful Treats for Your DogFamily

Ask Stacy: What’s the Fastest Way to Pay Off My Mortgage?Borrow

7 Free Sources of Manufacturer Coupons You Can Find OnlineSave

Ask Stacy: How Do I Start Over?Credit & Debt

8 Ways to Get a Good Price on a Shiny New AutoCars

You’ll Soon Pay More to Shop at CostcoSave

10 Ways to Save When Your Teen Starts DrivingFamily

Fixing Your Credit? Do These 5 Things, Avoid These 3Credit & Debt

Websites like Prosper.com allow you to skip the bank and get a loan from an individual willing to lend.

The stock market offers a good potential return…but lots of risk. The bank? Not much risk…but not much return either. Sound familiar? Then listen to this:

“My average is 20%. I have 102 loans out right now, and my average is 20%.”
-Ava Pierre, Internet Lender

Ava Pierre is a new kind of investor in a new kind of investment. She’s not investing in stocks… she’s investing in people.

“People are coming to Prosper with a definite need. You’re fulfilling the need and you can do it with a small amount of money. So I thought it was really cool.”
-Ava Pierre, Internet Lender

She’s talking about Prosper.com. A place where lenders and borrowers meet online with no bank needed. If you need money, you tell your story. If you have money, you offer to lend it. Deals are stuck when they agree on a rate. In short, this is the eBay of lending.

Good for borrowers who don’t want the hassle of banks. But also good for lenders looking for an investment that pays more than a bank and is more personal than the stock market.

“We’re changing the way people are. The way they think. People are getting them out of that old mentality that I’m always going to be broke and they realize they don’t always have to be broke. ”
-Ava Pierre, Internet Lender

What about risk? The best way to reduce risk is to lend little amounts to lots of borrowers. Minimum loan is a hundred bucks and maximum length is three years.

This may be borrowing without bankers, but it isn’t borrowing without middlemen: these websites charge a percentage to both borrowers and lenders. But still, a borrowing and investing alternative of “interest”.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!

💰🗣📰

Read Next: 5 Easy Ways to Save on Your Cell Phone Bill

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,990 more deals!