Some thoughts on P2P lending

So I've been doing a bit more research on peer-to-peer lending sites, mainly Prosper and Lending Club. Basically, they are both pretty similar, but how they go about with the lending process is different. Prosper relies on an eBay style process with borrowers posting a listing and starting interest rates. Lenders bid and lower the interest rate until time runs out. Decisions are based on info borrowers submit to Prosper. Lending Club reviews information as well, but their lending process is different. Borrower listings are assigned a credit grade based on information that includes their credit rating, DTI, etc. Then an interest rate is assigned. No bidding. Kinda more of a Buy it Now approach.

There was an article out there talking about the differences. The author had some investments with Prosper, and although Prosper uses a different approach in terms of the borrowers' credit rating, he attempted to figure out what interest rate he would've received if he invested in a similar loan on Lending Club. He concluded that lenders would probably receive a higher interest rate at Lending Club, while borrowers can take advantage of the larger lending base at Prosper and receive a lower interest rate.

Now does that mean I should stop my investments at Prosper and move my money to Lending Club when it gets back from the loans? I don't know. Maybe I'll do better at Lending Club. Or maybe I won't. But right now I'm averaging at least 20% return with my 7 loans. So far Prosper doesn't seem to be going down yet, and there is an abundance of loans to bid on there (although things are locked while Prosper tries to get registered to offer a secondary market for their loans). Also, cash that gets repaid and haven't been reinvested is held for me at a Wells Fargo account with FDIC insurance. So, I hear some bad things out there, but I haven't been burned yet. I think I'm gonna stick around on Prosper and keep feeling things out.