Peer-to-peer lending is re-emerging in the marketplace after a rough patch. This is a great way for people to lend to each other online without bank interference.

Prosper.com was one of the earliest P2P lenders to gain traction. But they didn't initially screen their borrowers well enough and a lot of loans went bust as a result. Then the government stymied them briefly over a misunderstanding about securities.

But now Prosper is back in action with a relatively low default rate of 5% among borrowers, according to Barron's. This service and its competitors are now putting people through their paces to weed out the baddies. The company claims 850,000 members and just a little under $200 million in loans underwriting at this date.

Lending Club has a 3% default rate, meanwhile, and turns down 90% of potential borrowers in an effort to cull the herd and find the most credit worthy.

That, of course, begs the question: Who would anyone go the P2P route if you're credit worthy? Generally, you can get a better deal with a P2P lender vs. a bank. Yet it's roughly equivalent to the kind of deal you'd get at a credit union.

For you as a lender, P2P lending allows you to slice up your money to limit risk. So if you want to put $1,000 in the game, you lend $100 here, $200 there and on and on.

The returns you might get as a lender can be enticing. Prosper claims the average lender earns 7% on their money, net after expenses and charge-offs. But those who are really into this virtual underwriting boast that they can make a 12% return.