Peer-to-Peer Lending

Signature loans can be difficult to obtain. The lower your credit score is, the less likely it will be that you will be able to secure a loan. In today’s difficult economic climate, lenders are even more cautious about who they are will to lend money to. As an alternative to traditional banks and other lenders, more and more people are looking into a new type of lending — peer-to-peer (P2P) lending, also known as social lenders. P2P lenders are individuals and small businesses that make loans to other individuals and other businesses. In today’s market place where lenders are much less willing to loan money to people who they feel are high credit risks. This field is growing rapidly. As we mentioned previously, the Securities and Exchange Commission (SEC) has increased the regulations upon the social lending companies.

Lending Club has already met all of the SEC’s requirements, and has become a leader in the peer-to-peer lending field in the United States. Recently, the CBS television network presented a report on this fascinating, and exciting new industry. Here’s the CBS report:

Borrowers who have a good to excellent credit score are able to apply for, and are likely secure personal loans of $1,000, $5,000 or if their credit is good enough, even $25,000 through social lenders, such as LendingClub. Besides being able to secure a loan when other lenders might not be willing to loan you money, there is another advantage. You may be able to secure the loan through the social lending site with a better interest rate than those that are offered by traditional lenders. As with any signature loans, peer-to-peer loans may be used for any reason whatsoever. Typically, people use these loans for debt consolidation, home appliances, student loans, or for any other reason. There is no limitation on how you use the money. There is a catch, isn’t there always…. Borrowers can not have a bad credit rating if they are trying to secure financing via peer-to-peer lenders. To borrow money from one or more of the numerous lenders at Lending Club, the borrower must have a good credit rating. Borrowers need to have a credit score of at least 660. Do you know your credit score? If you are fortunate enough to secure such a loan, you will need to repay it by making payments for the next 36 months. Borrow the money. Use it for whatever reason you need. Then repay your loan and improve your credit rating. This will allow you to get loans in the future, and be able to get these loans at better interest rates. This means that you future loans will cost less. Lending Club, as with all other peer-to-peer lenders are becoming fantastic alternatives to traditional lenders, especially for those who those who are seeking signature loans.