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.