What are some peer-to-peer lenders?
These four P2P lenders represent some of the biggest names currently in the business:
- Upstart
- Prosper
- Peerform
- Funding Circle (for business lending)
Alternatives to peer-to-peer lending
If you find yourself in an emergency situation and need funds in your bank account quickly, there are alternatives to P2P lending. For example:
If you have a strong credit score, there's a good chance you qualify for a 0% intro APR credit card. This means you won't pay interest during the card's "promotional period" (usually 12-18 months). When that promotional period ends, you'll start paying interest at the card's regular rate. A 0% promotional rate credit card can be a good option if you know you'll be able to completely pay off the card before the end of the promotional period.
Your current bank or credit union
If you have trouble finding a loan, talk to your bank or credit union. No matter your credit score, your financial institution may use a different approval method. For example, it can view how often you make deposits, how much you have in savings, and more. It may be open to loaning you money because it knows you better than other lenders do.
Other online lenders
No two online lenders are exactly alike. Whether you need a personal or business loan, if you decide that a P2P lending company is not for you (or your application is denied), check out other online lenders.
No matter which financial institution you shop, don't just check the loan interest rate. Also ask if there's a loan origination fee or other built-in costs that will end up making the loan more expensive.
The peer-lender approach offers an innovative twist on personal loans, but doesn't represent the only game in town. Before signing on the dotted line as a borrower, be sure to shop around and find the loan that best fits your needs.
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