Getting a loan can be difficult. It is even harder to get a loan when the financial markets are in turmoil. During the best of times, most lenders are not willing to loan money to people who have a bad credit rating. The reasons are logical. The lenders are concerned that those people with a bad credit rating will be less likely to repay their loans. Lenders only want to loan money to people with good to excellent credit ratings. During bad financial times, lenders do not want to loan money to very many people. So if you have good credit and need a loan, how can you borrow money?
If banks are unwilling to give you a loan, and you have a reasonable credit rating, there are alternatives. A new idea is to borrow from other individuals that you likely do not know. There are new services available called peer-to-peer lenders. These new person-to-person lending sources allow borrowers who need money to request, and hopefully obtain the money they need from other people.
What makes these social lending sites worthwhile? There are several many reasons why you would want to borrow money from a peer-to-peer lending website. One of the main reasons that you would want to use a social lending site is that you are more likely to have your loan funded. This is obviously the most important reason. If you cannot borrow money, regardless of the lending terms, you will not have the money that you need. The terms at social lending sites are usually more favorable than from banks. Thus, you can borrow money for lower interest rates and the repayment period may be longer, which lowers your monthly payment even further.
In order to make sure than you are eligible to obtain a loan through a peer-to-peer lending site, you should know your FICO score. Your FICO score tells you what your credit rating happens to be at that moment in time. Peer-to-peer lending websites like to deal with people who they feel confident will be ready, willing, and able to repay their loans. As such, they place restrictions on who is able to borrow money on their site. In order to borrow money on these peer-to-peer lending websites, you will need to have a good credit rating. Usually in order to qualify for a personal loan through one of these social lending sites, you need to have a credit score of at least 640. Some of the sites require even higher scores. Some are as high as 680.
Peer-to-peer lending is a great option. You can search the internet for names of several of the sites. Some examples of seasoned players in the arena include Zopa, Prosper, and Lending Club.
Peer-to-peer lending is a great way to get a loan. You can obtain a loan, probably more easily than through a bank, and probably at a better interest rate. It is a win-win situation for all people involved. - 21365
If banks are unwilling to give you a loan, and you have a reasonable credit rating, there are alternatives. A new idea is to borrow from other individuals that you likely do not know. There are new services available called peer-to-peer lenders. These new person-to-person lending sources allow borrowers who need money to request, and hopefully obtain the money they need from other people.
What makes these social lending sites worthwhile? There are several many reasons why you would want to borrow money from a peer-to-peer lending website. One of the main reasons that you would want to use a social lending site is that you are more likely to have your loan funded. This is obviously the most important reason. If you cannot borrow money, regardless of the lending terms, you will not have the money that you need. The terms at social lending sites are usually more favorable than from banks. Thus, you can borrow money for lower interest rates and the repayment period may be longer, which lowers your monthly payment even further.
In order to make sure than you are eligible to obtain a loan through a peer-to-peer lending site, you should know your FICO score. Your FICO score tells you what your credit rating happens to be at that moment in time. Peer-to-peer lending websites like to deal with people who they feel confident will be ready, willing, and able to repay their loans. As such, they place restrictions on who is able to borrow money on their site. In order to borrow money on these peer-to-peer lending websites, you will need to have a good credit rating. Usually in order to qualify for a personal loan through one of these social lending sites, you need to have a credit score of at least 640. Some of the sites require even higher scores. Some are as high as 680.
Peer-to-peer lending is a great option. You can search the internet for names of several of the sites. Some examples of seasoned players in the arena include Zopa, Prosper, and Lending Club.
Peer-to-peer lending is a great way to get a loan. You can obtain a loan, probably more easily than through a bank, and probably at a better interest rate. It is a win-win situation for all people involved. - 21365
About the Author:
Garrison Galbraithe, who has been passionate about personal finances for more than three decades, has written a practical guide to peer-to-peer lenders. You can obtain information about several borrowing options, including signature loans at his site.
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