In these difficult economic times we are undergoing now, you have no doubt seen that lenders are tightening up on the amount of money, if any, they will lend. If you have a bad credit history you are in trouble, but if you have a good credit rating but a lot of debt you may also be in trouble when you want to borrow money.
You know that the interest rates for getting the money you need have risen lately. You can see from credit card rates that it is not easy to have access to the money you may want to borrow. Some wealthy people with great credit ratings are getting decent rates, but average people are still having a hard time.
There is now a new player in the field, however, and maybe one that you want to explore. It can be called social lending or peer lending or person to person lending sometimes abbreviated as P to P loans. It allows people who have money to lend to lend it to others at a good interest rate so that both sides benefit.
Lending Networks are a safe and legal way for individuals to lend each other money at competitive interest rates that one may not normally qualify for. There has always been a huge risk of families and friendships being torn apart from lending money to one another when trying to help in a time of need. Lending networks eliminates this possibility.
With a lending network, you can borrow money from someone at a very desirable interest rate without fear of ever having met this person before. Some people may find this risky but there are many reasons why it is very safe.
These days there are many social lending websites that any borrower or lender can join in. It is mandatory to provide the basic information and the financial details in this profile so as to confirm your status to the company as per rules set by law. Both the lender and borrower will not face each other directly and know to whom they are lending or from whom they are borrowing.
The process is very simple; you put your monetary need on the lending network site and submit a reason for the loan. Your reasoning for money is up to you; it can be from paying off debts to needing money for a business venture.
In peer to peer lending, the process works differently for the lender. You give financial information about yourself and put money that you are willing to lend into an account with them. They're holding it for you or rather holding it in escrow for a possible borrower. You bid with an interest rate to fund the loan, although it may be divided among several borrowers which is the wiser path so your risk is lessened.
You know that the interest rates for getting the money you need have risen lately. You can see from credit card rates that it is not easy to have access to the money you may want to borrow. Some wealthy people with great credit ratings are getting decent rates, but average people are still having a hard time.
There is now a new player in the field, however, and maybe one that you want to explore. It can be called social lending or peer lending or person to person lending sometimes abbreviated as P to P loans. It allows people who have money to lend to lend it to others at a good interest rate so that both sides benefit.
Lending Networks are a safe and legal way for individuals to lend each other money at competitive interest rates that one may not normally qualify for. There has always been a huge risk of families and friendships being torn apart from lending money to one another when trying to help in a time of need. Lending networks eliminates this possibility.
With a lending network, you can borrow money from someone at a very desirable interest rate without fear of ever having met this person before. Some people may find this risky but there are many reasons why it is very safe.
These days there are many social lending websites that any borrower or lender can join in. It is mandatory to provide the basic information and the financial details in this profile so as to confirm your status to the company as per rules set by law. Both the lender and borrower will not face each other directly and know to whom they are lending or from whom they are borrowing.
The process is very simple; you put your monetary need on the lending network site and submit a reason for the loan. Your reasoning for money is up to you; it can be from paying off debts to needing money for a business venture.
In peer to peer lending, the process works differently for the lender. You give financial information about yourself and put money that you are willing to lend into an account with them. They're holding it for you or rather holding it in escrow for a possible borrower. You bid with an interest rate to fund the loan, although it may be divided among several borrowers which is the wiser path so your risk is lessened.
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