Have you heard of Social Lending? The world wide Internet has left no need unfilled.
Social lending sites (also known as peer-to-peer lending) will connect people who need loans with individual investors. The rates available can vary. For example, rates on a three-year fixed-rate loan at Prosper can vary from 7.8% to 26% and of course, depend on credit scores. How does it all work? Investors actually ”bid” on the borrowers’ application. Whichever investor provides the lowest interest rate wins the contract.
Lending Club is another popular peer-to-peer lending club. Check out their site.
Prosper requires borrowers to have credit scores of at least 640. Lending Club’s minimum is 660.
Both Prosper and Lending Club report borrower payments to the credit bureaus. Prosper reports to just Experian and TransUnion. Lending Club reports to all three bureaus.
If you need a loan and want to try bank alternatives, take a look.
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