Best Peer to Peer lending Companies for all Credit scores

What is Peer to Peer lending & How Does it Work.

Peer to peer lending is a modern day social networking phenomenon.  It is intended for individuals and businesses that are looking for alternative means of getting personal loans for just about any need.  Social lending networks exit to bring investors and those who need loans together in a single marketplace, and as more and more people find out about and join these networks the industry is beginning to rival the traditional banking industry.

Peer to Peer lending

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  • It won’t affect your credit score.
  • No cost, no obligation to find your personal loan.
  • There is no prepayment penalties.
  • Compare & select the right loan for you.
  • APR 4.99% to 36%, including origination fee
  • Payback Term: 30 days to 6 years
Visit NextdayPersonalloan.com

Peer to Peer Lending Companies:

best unsecured personal loan companies

The global financial crisis that began in 2008 did a tremendous amount of damage to national economies around the world.  This so-called ‘great recession’ was of such magnitude that many countries have still not fully recovered from the situation.

As would be expected, the meltdown has had many far reaching and unpredictable consequences for individuals and businesses alike.

One common them that has persisted throughout the downturn is the unavailability of loans for those with either less than perfect credit histories,  or those with relatively under developed credit records.

P2P lending Companies for personal loans:

Especially for those who got bad credit and unable to get a personal loan from banks or any other financial institutions.

Life must go on though, and those who have greater than average difficulty in getting loans for various needs are large in number and represent a significant market share.

Predictably, and industry has sprung up to service the needs of these businesses and individuals, and this industry is known as peer to peer lending.

Many readers may have heard something about this new trend, but many others will be new to the subject.  This article will serve as an introduction to the subject for those who know little about it.

How does peer to peer lending work?

 [Watch this P2P lending video]:

When we look under the engine, we can see that peer to peer lending is basically a 3 part process.

  1. CREATE A LISTING FOR A LOAN

In this step, prospective borrowers find an alternative lending network that they feel comfortable with.  There are many such networks out there, and more are popping up all the time.  Some of the incumbents include the likes of Prosper, Avant loans, and lending club, to name just a few.

Once the individual has settled on the network that they would like to use, the next step is to create a loan listing.  It sounds complicated, but a listing is basically a kind of advertisement that states how large a loan is needed, borrowers credit score, their monthly income, and what the desired interest rate is.

Please note there is no collateral or personal guarantee required. Checking your rate doesn’t affect your credit score

  1. THE BIDDING WAR COMMENCES

Once the listing the individual has posted is active, investors can then begin to bid on the listing.  During this process, they will let the prospective borrower know what interest rate and loan amount they are willing to provide.

Using Peer to Peer lending networks has an advantage that other forms of lending lack; as possible investors begin to bid on the loan listing, quite often the terms of the loan including the loan amount and the interest rate become more favourable to the borrower.

  1. THE BORROWER ACCEPTS THE HIGHEST BID (Low fixed interest)- AND EVENTUALLY PAYS THE LOAN BACK

Networked lending has another special benefit that is hard to find anywhere else; the borrower is perfectly free to construct the required loan amount by combining several bids together! For example, let’s say a borrower needs $28,000 to purchase new equipment for a small business.

Rather than getting one lump sum from one investor (which is perfectly fine), the borrower has the option of accepting 4 different loans of $7,000.

  • Loan ranges from $500 to $35,000
  • APR: 6% to 36%
  • Bad Credit OK
  • Loan term: 3 months to 72 months
  • Online Loan application takes 10 minutes to complete.

Submit your online loan request below:

Visit NextdayPersonalloan.com

Peer to Peer Lending For All Credit Types:

One of the benefits of using Peer to Peer lenders in this way is the borrower is not obliged to make 4 different payments every pay period: rather, all they have to do is to make one loan payment every month.

The borrower directly pays the social lending organization, which then pays the individual investors, thus saving the borrower a lot of time and effort. Once the loan has been fully repaid-plus a small fee for the peer to peer network-the borrower is home free.

Main highlight of the peer to peer lending is you check your rate at no cost and no obligation if you are fine with rate and terms then accept else walks away freely.

And that’s it! Peer to peer lending has proved to be a lifeline for many individuals and businesses, and over the coming years it promises to be a major-and welcome-player in the global lending industry especially in United States.

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