Skip the Bank and Use a Peer Lending Network
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You can laugh all the way to the bank by skipping it entirely when you go to apply for a loan. All you have to do is select a peer lending network website and get the loan you want at a rate you can afford. Your job is to find a site that is the best fit for you. They are all slightly different and you need to find just the right one to fit your own financial situation. Look at the similarities and differences between them before making your final decision.
Lending Club requires its applicants to have a FICA score of at least 640. Also, a borrower’s debt-to-income ratio cannot be more than 30%. This essentially means that only those borrowers with good credit can get a loan through Lending Club. It also gives users the opportunity to lend to friends and family or find other potential borrowers by using a link to Facebook. Prosper gives the market the ability to decide which borrowers to fund. It doesn’t matter what your credit score is. Lenders look at your profile and decide for themselves if they want to take a risk with you. Zopa is directly affiliated with credit unions throughout the United States. It also requires a credit score of 640 and its users must belong to a credit union. Lenders invest in CDs and they also select the borrowers that they are willing to take a chance on. Virgin Money is a site that is directed towards friends and family members. It gives people who know each other a chance to help one another. Loans using this site are apt to be restructured if the need arises.
Using a peer lending network is a perfect way to get the money you need, when you need it. No more waiting in lines at the bank and spending hours filling out reams and reams of paperwork. No more red tape. All you have to do is go to your chosen peer lending site and enter realistic rates that you can live with. Don’t make them so low that a potential lender won’t accept the risk. Try your best to win the lender over by explaining in detail why it’s so important that you get the loan. Become his best friend by giving personal information about yourself. Be patient in getting your loan. It may take awhile to find just the right lender. And, finally, look closely at all of the terms of the loan. Make sure you fully understand the amount of the interest rate, the length of the loan and payback instructions.
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