Best Peer to Peer Lending Sites For Bad to Good Credit Score
P2P or Peer to Peer lending have grown since the arrival of digital technology, due to its various advantages offered to both investors and borrowers. The main advantages to borrowers include:
- a one-stop shop for those looking for a Personal loan.
- You do not need to spend hours visiting several banks. Peer to Peer lending sites allows you to tap into their network of many lenders with one simple form, saving you time.
- Borrowers can get instant decision from peer to peer lending companies based on their credit score, income, & debt-to-income ratio.
Peer to Peer Lending sites for bad credit:
For those who have found themselves in a bad credit type of situation, there is hope. The Peer to Peer Lending is beginning to approve bad credit loans. Applicants who have good income with stable work history and low debt to income often found themselves getting approved for personal loans. However, with the P2P loans, they can consolidate their debt into one payment- typically with a lower interest rate.
- Lower interest rates on average compare to traditional banks for credit cards or installment loans
- Easy to use online platforms
- Transparency and clearly disclosed loan terms
- Instant decision making with the use of technology to assess quickly and assign risk grades and interest rates to applicants.
Are you struggling to pay bills and other debt. Need a quick cash for personal use or due to an unforeseen medical emergency, there are many people who need to get their hands on some cash. But they simply don’t have the credit score to be approved for a traditional personal loan from the bank.
- Lending from $100 to $35,000
- Must have a permanent source of income
- APR starts at 6% to 36%
- APR depends on your state, credit score, and monthly income.
- No Prepayment penalty
- Terms: 3 months to 5 years.
Yes, it’s true- individuals who have bad credit typically have a hard time finding solutions for their financial needs. After all, a traditional bank loan typically requires good or excellent credit to lend money. So, if someone has bad credit and needs to borrow money to pay some bills or for immediate personal use. What options do they have?
Getting Online Loan from Peer to Peer Lenders;
There are a lot of options for getting an online loan. Direct lenders include peer-to-peer (p2p) lending, tribal online lenders, and even payday loan lenders.
Most of the lenders are registered with Online Lending Alliance, you can see “OLA” seal on their websites means you can trust them for,
- Highest standards of conduct,
- dedicated to ensuring the best possible experience for their customers,
- Fully compliant with federal law,
- Working hard to protect consumers from fraud.
No matter which method you choose for getting a loan online, you should be aware of the Truth in Lending Act (TILA) or Regulation Z that requires businesses to treat consumers fairly throughout the entire process of qualifying for a loan, agreeing to terms, receiving the money, and paying back the loan.
According to this law, lenders must offer consumers the following information:
- Original loan amount.
- Annual Percentage Rate (APR).
- Term of the loan amount.
- Finance charges including potential late fees, penalties for missed payments, check processing fees, and origination fees
- A repayment schedule that shows the amount of each payment and when it’s due.
- The total amount of the loan plus fees and interest rate.
Peer to Peer Lending Bad Credit Approval:
If you meet this following requirements below:
The good news is People with bad credit can borrow money online, having permanent monthly income and can meet the lender’s criteria:
What is Peer to Peer Lending?
Digital (or P2P Loans) lending a marketplace for both investors and borrowers. P2P investors offer unsecured personal loan for borrowers who meet their requirements with a APR from 6% to 36%. The investors get the chance to grow their money quicker than they would in a traditional savings account. Consumers or borrowers can apply for a personal loan from the comfort of their place to get quick access to the loan they need.
Reasons to Apply for a Peer to Peer Loan
Following are seven reasons why peer to peer loans are good for those individuals who have less than perfect credit scores.
Peer to Peer Loans: Less procedure= Instant Approval
This digital lending made life easy when you need a personal loan. Whole process and procedure is done online. You can apply from anywhere within USA. Simple procedure and low documents to get a loan.
Fill in your loan application and submit. Keep all the required information like personal and employment details while filling the online loan application.
Once you submit. It takes few minutes to hour to get the approval. It will be instant approval if you are eligible for a personal loan.
Peer to Peer Loans: Online Assessments = Higher Approvals
There are many consumers out there who do deserve a credit line, but their bank doesn’t give them a loan because the bank doesn’t have access to all of their information. Instead, the consumer is told that he has “bad” credit- but this is typically said by those banks who are not able to see the full picture. In contrast, the Peer to Peer personal loan Companies are able to judge more accurately whether or not a person deserves a loan.
This is because they are able to access a variety of data from a variety of third-party resources so that they can build the consumer’s profile. These companies do this while also taking a look at the rates of success of past loans, which gives them the ability to approve loans for those who would be denied elsewhere.
They use your Social security number to check the database to know your credit history. Which is a soft inquiry. It won’t affect your credit score.
Peer to Peer Loans: Lower Interest Rates (starts at 6% to 36%)
Unfortunately, the average consumer that is denied for a bank loan has very few other options available to them. Most of the time, the only option is a Payday cash Loan, but these types of “cash-advance” options typically have very high interest rates- that is, over 200 percent.
This type of loan is so predatory and bad that some states, such as Georgia, have outlawed them. On the other hand, Peer to Peer Lending Companies will issue loans to individuals with rates that are much more reasonable than, as low as 6 percent.
Peer to Peer Loans: Borrow up to $35,000 unsecured personal loan:
Many times, there is a cap on how much your local bank or credit union can offer you. Which can be a problem! Many times, people need to pay off large debts such as medical debts or credit card debts and have difficulty finding a loan large enough to cover it. However, the P2P Loan Companies offer much higher loan amounts- and in the next few years, could be rising.
Peer to Peer Loans: Quicker Access to Cash
When a consumer applies for a loan at his local bank or credit union, the process will be more then a week. The paperwork needs to be faxed and there are phone calls that need to be made. However, the Peer to Peer Lending companies work almost entirely online.
This means that the process can be done in a lot less time. Individuals who apply for a loan through Peer to Peer Loan will have their funds within 4 working days.
Peer to Peer Loans: No Penalties for Paying Early.
Other evidence supporting the fact that the Peer to Peer Loan Companies are more efficient and cost less is the fact that the borrower will be allowed to pay off their loan early without incurring additional fees. This means the Peer to Peer Lender loses some interest, it’s a major plus for the consumer. When it comes to the traditional loans at banks, the fee for paying early can be several hundred dollars.
Peer to Peer Lending: Come from Your Peers Across the Country
While this is a great reason why P2P Loans are good solution to the financial woes of a consumer. It seems to have gained its appeal in recent years. Yes, the Peer to Peer loans are funded by individual investors across the country. As a borrower, chances are that you feel little to no connection to a bank offering a loan. The Peer to Peer Loans are typically funded by several individual investors working together. This typically gives the consumer a bit of dignity and responsibility regarding the cash they have been given.
The borrowers often has to jump over many hurdles to get the loans that they need. Peer to peer lending is one of the easiest forms of getting the money that you may need. Use it to purchase new equipment or renovate your home, Vacation, debt consolidation that it will better suite your needs.
The traditional banks often flatly refuse to give loan for bad credit borrowers. Unless they possess the collateral to back the loan.