Peer to peer lending is becoming more and more popular these days. While you can still get signature loans quite easily, peer to peer loans are almost always better option.
Peer to peer lending, also known as social lending, can be a great alternative to a signature loan. The mainstream media seems to think so too. The Financial Times ran an article about this.
The Financial Times article discussed what we’ve been mentioning for some time. If the mainstream lenders aren’t offering you financing, you have an alternative. You can get a loan from your friends — well, they may be strangers to you, but they may be willing to loan money to you. Peer to peer lending allows individuals to lend small amounts of money to one another.
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Peer to peer Lending
Social lending allows individuals and small business to loan and borrow money from one another without a lending institution getting involved. Essentially, the individual who is loaning the money is the bank. This approach to lending has seen a surge in interest recently as people are finding it more and more difficult to secure loans from traditional lenders. There are several of these types of social lending groups.
One such group is Prosper!. This group has been around for many years now. They have been in business since 2006. They are America’s largest peer-to-peer lending marketplace with more than 1,030,000 members. They have funded a great many loans. In fact, they have funded over $218,000,000 in loans.
Can I Get Peer to Peer Loans With Bad Credit
Yes. You can submit a request to borrow money using this service, regardless of you credit. People with good credit are more apt to have their loan request approved than people with bad credit. However, there is a reasonable chance that your loan request will get filled, even if you have bad credit. The difference is going to be how much you will have to pay in interest.
Those people who have a good credit score will be able to borrow money at lower rates than those people who have bad credit. As of this writing, you could borrow money through Prosper with interest rates starting at 5.9%.
How Much Money Can I Borrow?
If you have bad credit, there is a possibility that you loan request will be only partially funded. That is, if you ask for $5,000, you might only be able to borrow $2,500. The reason for this is that typically no one lender (another individual) is going to be willing to take on the entire burden of loaning you the $5,000. It wouldn’t be prudent for them. This is especially true if you have a poor credit history. If you didn’t repay the loan, they might be out the entire $5,000. So, as traditional lenders do, they mitigate their risk by spreading it around amongst various borrowers. Thus, if one of their borrowers defaults, they are not out the entire amount that they loaned.
Apply For Peer to Peer Loans
With peer to peer lending, you can borrow as much as to $35,000 (depending on which service you use.) If you are ready to consider Peer to Peer Lending, click here: Borrow With Prosper!
- Charge you late fees
- Send your account to a collection agency
- Report your information to a consumer reporting agency, which may negatively affect your credit score
- Offer to renew, extend or refinance your loan, which may cause you to incur additional fees, charges and interest