Popular Peer Lending Sites
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Sure, you can go to a bank or other financial lending institution and apply for a loan. You must be prepared to fill out mounds of paperwork and to go through lots of red tape. And, more than likely, you won’t be able to get the loan because banks today are tightening the strings. The economy is struggling and most large banks aren’t willing to take a chance on lending money if they’re at all concerned about getting the money paid back to them. One way to get a loan and avoid all the hassle is to look at peer lending sites and apply for a loan using one of them.
Getting a loan through peer to peer (P2P) lending can be somewhat risky for lenders but it works just great for borrowers. Borrowers have the advantage of “pleading their case” to potential lenders and often have success in getting a loan. Using detailed information, they can explain their reasons for wanting a loan and what their current financial situation is. All a borrower has to do is go online to a peer to peer lending website and set up a profile. Then, potential lenders look at their profile and decide if they are willing to risk loaning some money. Some sites have links to Facebook and MySpace giving your friends and family the opportunity to add their comments regarding your character.
There are a few peer to peer lenders that are worth taking a look at. Lending Club leads the pack in getting low interest loans for people with good credit. Its services are streamlined to integrate the needs of the borrower and the lender. Lending Club has strict credit regulations and generally requires a FICA score of 640 in order for an applicant to qualify for a loan. The site has no hidden fees and once the interest rate is set, it is applicable for the full duration of the loan. Zopa.com is available in several countries and serves a variety of potential borrowers. Borrowers and lenders at this site must belong to one of Zopa’s partner credit unions which is required in order for its CDs to be guaranteed. Prosper.com is another site worth looking at. It also grants loans for a variety of reasons and requires that borrowers and lenders be U.S. citizens. It makes its profits by charging a one-time fee to borrowers on funded loans and charges an annual service fee to its lenders. There are many other peer lending sites and all it takes is a few minutes to find one that is right for you!
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