I became a lender on Prosper so that I could see how the whole process works. I made a loan of $50, which is the minimum and used the automated investing option.
This means that Prosper will use its algorithm to choose a loan that is the best match for me according to the criteria I put in. I funded the loan and the system just told me that I should expect $1.59 on January 14, 2008 and then every month thereafter.
I know that it seems like just a small amount for the cash I invested but I am taking it slowly right now because I do not have a lot of money to invest. That money was actually my savings for this month.
The loan is currently funded at 8.9% so that should be a nice little rate of return for me on my investment.
I am still looking at becoming a lender on the site because I have some ugly credit card debt that is at a very unattractive rate that I would like to get lowered so I can save some money.
I will see how things go and then set up my loan in a few days.