Where do you go if you are living paycheck to paycheck and are in need of some cash? Getting personal short-term loans or long-term loans from a bank can be tough and time-consuming. Many banks require you to have excellent credit scores before they will consider giving you a personal loan. They are also likely to require you to fill out extensive forms about your income, assets, and collateral as well as want to know what you will do with the money if you get it.
For a fee and some hefty, double-digit interest rates, you could get a cash advance on your credit card or apply for a payday loan or cash advance. While these options are available to many consumers, they can be quite expensive, depending on your FICO score, how long you will need them, and the amount of money you are seeking. Another option for some is asking to borrow money from friends and family, the price of which could be your relationship with them.
Peer to Peer Lending Offers Low Rates, Fast Cash
Yet with the rise of peer to peer lending, you can borrow money from a non-family member individual without all of the hassles, paperwork and formalities of a traditional corporate bank. Thanks to the internet and its secure platforms, peer to peer lending sites are finding ways for those with money and those seeking it to come together, for a lot less than a bank or payday loan institution.
Because it’s Stigma-Free and Simple, Peer to Peer Lending Has Taken Off
Peer to peer lending companies will still run a credit check for applicants but those with mid-level to good credit can secure much lower rates and fees than with payday loans or even short-term loans from a bank. Even better, peer to peer lending sites can provide cash in 2-3 days whereas Short Term Loans can take weeks or longer to get your money.
Rates are so low for peer to peer lending companies that many people use the money to pay off credit card debits. Money can also be used to pay off medical bills, to cover an unexpected bill or repair, or even go on vacation.