Earn money by lending?

Marvqn1

On Reddit, they have a section /borrow where people can lend other people money and earn money with interest. However, you need at least 1000 karma to use it.

Does anyone know of anything similar online where you can earn money by lending money and what are your experiences with it?

Rainbowgirl84

Lend me £100 and I'll tell you.

simplydevine05

Zopa. You can lend money here to strangers to earn money. Lots of reading to do before you get involved though and I believe the minimum term is 3 years but it may have changed.

paddyrg

Ratesetter has a monthly market. It's also FAR safer then lending to redditors as there's a pool to repay for bad repayers, whereas a copypaste bot in Reddit could easily get 1000 Link Karma in an hour.

Marvqn1

paddyrg wrote: »

Ratesetter has a monthly market. It's also FAR safer then lending to redditors as there's a pool to repay for bad repayers, whereas a copypaste bot in Reddit could easily get 1000 Link Karma in an hour.

From what I've read on Reddit, if someone doesn't pay back what they borrowed, it's covered by Paypal. I don't know if that is true or not though.

paddyrg

I think Paypal could only help you if it was a payment for actual goods or services, I would be REALLY wary of expecting them to carry the can for not doing due diligence on a stranger you sent money to!

nirajn123

Martin has done a write-up on P2P lending, including his own experience - have a read through. And after years of watching from the sidelines, I have started using RateSetter about 6 months ago and quite happy with it. I am able to set the rate (not really a surprise given the name of the site) and feel comfortable that the money is not going to disappear.

scaredofdebt

I have used Zopa in the past and it was OK but rates have dropped recently.

Currently using Funding Circle, lending to businesses, early days yet but that seems more lucrative, rates are higher.

wmb194

If you're not using them already don't forget the 3% to 6% current accounts and regular savers that are available from e.g., Lloyds, TSB and HSBC's brands. The amounts you can deposit are limited but much less risky and rather more mainstream than organising something via Reddit.