Discussion in 'Other Asset Classes' started by Darlinghurst Boy, 15th Jun, 2016.

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  1. Darlinghurst Boy

    Darlinghurst Boy Well-Known Member

    29th Jun, 2015
    Darlinghurst Sydney
    has anyone used Ratesetter.com.au to make money, apparently you can lend money and set your own interest rate.
    Im still trying to work out how it goes but a workmate says its great to borrow from but im interested in being a Lender .

    Heres a copy from a site about Being a Lender with

    Sounds kind of risky as a lender, since they're essentially passing on the risk to you. They say that they "protect" lenders by ensuring borrowers have good credit history (banks do that too and plenty of people default bank loans) and they have a Provisional fund which they may choose to give you compensation from, but it sounds very discretionary and since it essentially eats into their profits they're not going to want to do it.

    The returns sound amazing, but you have to factor in the risk that for every dollar you lend there's a % chance you'll get defaulted and get 0 back. Hedging that over the possibly 8% returns and it probably comes out somewhere similar to the return rate of a managed fund or a term deposit.

    And then there's the possibility of the company going under. Australian banks don't fail, these guys… Who knows?

    Looks good, but you have to factor in the risk as there is no guaranteed return.
  2. datto

    datto Well-Known Member

    23rd Jun, 2015
    Mt Druuiitt
    Here's a review from a customer:

    Nick Tara
    3 weeks ago
    Promise the world and didn't deliver on promise. I was told by the customer service team i would get 6% and two days later they said they could only provide me with 10.95%. I have a very good credit file and a homeowner. My bank helped me with 7.95%

    Was that you DB insisting on 10.95% you usurer you. lol.
    Greyghost likes this.