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Best P2P Lending Platforms in 2021

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Are you looking for loans to fund your next big purchase? A P2P lending platform may be able to help you! However, there are so many different options out there. You will want to make sure that you are choosing a reliable platform that is going to be worth your time. 

Many of the most trustworthy sites have more than ten years’ worth of experience. These sites are very secure and consistently deliver your loans. You will not need to worry when you decide to go with one of these long-standing P2P platforms.

What is a P2P Lending Platform?

A P2P, also known as a peer-to-peer lending platform, allows you to get loans directly from others.

This option is best when you want to cut out lenders, such as banks. Many people with lower credit choose P2P lending since they can still get loans in this way.

Many of these platforms use specialized software to match lenders with borrowers. If you are looking for more loan options to pay for something expensive, you will want to consider this method. It is worth noting that you will still need to pay interest on your loan, most of the time.

How P2P Lending Works

P2P lending is a straightforward process and works much like you would expect it to. You will experience a soft credit check, which is there to make sure you can pay back the loan.

Once you make it through this step, the platform performs a hard credit check, then assigns you a rank. This rank or grade shows lenders on the forum what levels of risk they take when investing in you.

At this stage, you have access to the platform! You can make a post about what you need for the loan, as well as what interest rates you can pay. Finally, lenders make “bids” on your post. These bids include the amount the lender will offer- then you choose the one that suits you the best.

After you accept a bid on your listing, the loan amount enters your bank account. You will have to pay it back over time, but you now have the funds for your purchase.

Why Use a P2P?

There are a variety of reasons for anyone to use a P2P platform. Many people use P2P lending to provide funds for personal projects and similar situations. If you do not want to work with an institution, then P2P is your best choice! The sites still report to the credit bureaus, so you can still build your scores using these sites.

https://www.moneyunder30.com/peer-to-peer-lending-sites-for-borrowers-and-investors

However, there are plenty of sketchy P2P platforms online. You only want to borrow from reliable sources, so make sure to check out all the options below.

The Best P2P Lending Platforms

Now that you understand how to use a P2P lending site best, you will want to choose a platform that suits you the best. There are plenty of different sites available, so you will want to choose one that fits all your needs. For example, if you have Fair Credit, then Payoff may be best for you.

1. Peerform

Peerform is an excellent P2P lending platform. The site offers competitive interest rates, does not have prepayment penalties, and is perfect for Fair credit scores. This platform is very trustworthy since it’s been around since 2010. The people running the site also have ample experience in the field because of this.

The maximum loan amount is $25,000, which is not as high as others on this list. Still, you receive great rates and reliable services. It is also worth noting that the minimum loan amount is $4,000.

Overall, Peerform is the best P2P lending platform for many people. It comes with a low credit requirement, which is a 600-credit score. If you happen to be late paying on the due date, you also have 15 days before receiving a late fee.

https://www.thebalance.com/best-peer-to-peer-lending-companies-4580285

2. Payoff

The payoff is another reliable P2P lending platform that you will want to consider. Payoff even works with those who have a short credit history or fair credit scores. Many borrowers also said they appreciated having free access to their FICO scores on the site.

You can also pre-qualify as an added benefit, giving you a higher chance of getting the loans you want. There also are no prepayment penalties, so you can pay off the loan as soon as you are ready. 

Payoff also started in 2005, giving the site many years’ worth of experience. The platform also has lower fees and sends you the funds quickly. Their maximum loan amounts also fall between $5,000 and $40,000, which is more than enough money for many situations.

Overall, Payoff is an excellent option for anyone with fair credit who wants to build on their score. Most borrows can find the loans they need there.

3. Upstart

Upstart is a trustworthy P2P lending site that you should also investigate. The starting interest rate is a bit higher than the above two options at 8.27%. However, it is still great for borrowers who do not have an extensive credit history.

To offer loans to more people, Upstart does look at your job history and education, but these factors should work in your favor when you have low credit scores. The platform accepts those with scores of at least 600, which is lower than many other lenders.

Upstart came into existence in 2012. Today, you can borrow between $1,000 and $50,000. Additionally, about 90% of borrowers pay off their loans from the platform- making it an excellent place for those looking to invest on a platform. 

4. Prosper

Prosper is another wonderful option, but it is much better for those with a long credit history. Many of their lenders mention appreciating that the site allows them to change their monthly due dates. That way, you can choose a date that will enable you to make payments reliably.

Prosper was the first P2P lending site, which came online in 2005. During the years since the platform has gained a lot of experience and is very well-known. They can be a little slow to provide you with the funds, but you can borrow between $2,000 and $40,000.

This lending platform is best for those with a more extended credit history because the venue requires at least three open credit accounts. Those just starting on building their credit may not have that many credit accounts open. In short, Prosper is very trustworthy and always makes sure that you get your funds from accepted loans.

Final Thoughts

To summarize, there are many trustworthy P2P lending platforms that you can make use of. Many borrowers use these loans to pay for home improvement, new cars, starting a business, and other large purchases- we’re sure you will find them helpful!

Image credit: Wutzkoh

Learn To Be Content

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Getting your financial life in order starts and ends with you.

It’s not about how much money you make, it’s about how you manage the money you have.

Today I want to inspire you in responsible, happy living.

Learn to be content

“But godliness with contentment is great gain.” 1 Timothy 6:6

If you are unhappy or stressed out, chances are you’re not content.

The bible teaches us to be happy whether we have a little or a lot. It’s not about the amount, and it’s not about the race for gain, it’s about the journey.

Paul also addresses the topic of righteous contentment in Philippians:

“Not that I speak in respect of want: for I have learned, in whatsoever state I am, therewith to be content. I know both how to be abased, and I know how to abound: every where and in all things I am instructed both to be full and to be hungry, both to abound and to suffer need. I can do all things through Christ which strengtheneth me.” Philippians 11-13

He understands that it’s not about how much he has, it’s about learning to be content with what he has!

Manage what you have better

We’re instructed not to chase gain for the sake of wealth, but to manage what we have wisely.

The best way to manage what you have is to keep record of it. Do you keep records of the resources God trusts you to manage? If not, it’s time to develop a budget (a.k.a. spending plan).

The solutions that helped me transition into a successful budgeteer were free spreadsheets, Mint.com (also free), and YNAB (You Need A Budget) software.

Start with one of the free solutions and purchase YNAB if you like what it has to offer.

Give in faith

God promises to bless our giving, and I have yet to prove Him wrong.

It’s not about having enough to give, it’s about giving because He commanded us to.

By the way, giving is a gift God gave us! Nothing will increase your contentment like giving.

“I have shewed you all things, how that so labouring ye ought to support the weak, and to remember the words of the Lord Jesus, how he said, It is more blessed to give than to receive.” Acts 20:35

Trust me – giving is a gift to the giver!

Making more money

It’s worth repeating, the goal is contentment, not gain.

That said, there is nothing wrong with making more money – IF – you’re a wise steward of what you already have and are ready for the extra responsibility of added wealth.

“And he said unto him, Well, thou good servant: because thou hast been faithful in a very little, have thou authority over ten cities.” Luke 19:17

If God can trust you to manage the little you have now, He may bless you with more.

This is one bible truth that drives me to be a better steward of my resources. If I make $100,000 but can live on $50,000, that means I can use the other $50,000 for God’s glory.

If I prove myself faithful, the scripture teaches God may bless with greater abundance.

And my contentment should come from how I’m using that wealth for His glory, not from the wealth itself.

Start now

If you’re not content where you are, your first step is to start seeking contentment – not gain.

Once you understand that truth, you can move on:

  1. Start a budget so you can see exactly where your money is going.
  2. Lower your standard of living to fit your budget.
  3. Give in faith and trust God to bless.
  4. Honor God with the increase.

Remember to find joy in obedience to God’s principles, after all, He gave them to help lead us to contentment!

“For this is the love of God, that we keep his commandments: and his commandments are not grievous.” 1 John 5:3

God’s commandments are the recipes for finding joy and contentment. Trust Him and seek Him with all your heart and watch the blessings flow.

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Start Living on One Income!

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I strongly urge you to do everything in your power to start living on one income, however and whenever possible.  If you are single, concentrate on living well below your means, paying off any debt you have, saving money, and giving generously.  If you are a two income family, please read on with a hopeful and open mind.  🙂

Why live on one income?

Living on one income does not necessarily mean you’re only earning one income.  Whether both spouses work, or only one works and the other stays home… there are many benefits to living on one income only.

When both spouses work

As it sits right now, me and Betsy have no children and are self-employed, but it wasn’t long ago that we were both working full-time jobs. There are benefits to having both spouses work, but if you do I still encourage you to live on only one income while you save the other.

Here are a few noteworthy benefits of a two income family living on one income:

  • A hedge against job loss. If both spouses work, yet they only require one income for their living expenses, then the other spouses job can be lost without an enormous family crisis taking place.
  • Pay off debt faster. Use the second income to get you out of debt in record time.
  • Save more money. Once you are out of debt, start packing away boatloads of cash.
  • Give more. Because you can, because it will make you happy, and because “…God loveth a cheerful giver.”  II Cor 9:7
  • Retire earlier. Once your emergency fund is established, begin fully funding your IRAs, 401(k)s, and other investments so you can retire earlier and spend more time doing what you love.

When only one spouse works

If you have been blessed with children then most of you will likely be forced to decide between having one spouse stay home and putting the children in some sort of day care.  Let’s take a look at some of the benefits of being able to skip the day care and enable mom or dad to stay home with the children while the other spouse brings home the bacon.

  • No day care. You raise your own kids… full-time.  You do not have to pay for day care, and no longer have to worry about whether or not your children are being properly raised 8-10 hours of the day.
  • Less stress and more quality time. When the working spouse comes home, many of the household duties, cares, and concerns can already be taken care of by the homemaker.  This affords the couple much more quality time with much less stress.
  • Enable one spouse to take care of the home, and everything in it. One spouse goes to work for pay, while the other stays home and works as the support system.  A homemaker taking seriously the job of caring for home and family may just be the most honorable and rewarding position there is – and I think we, as a society, are in dire need of more of this type of thing.

I hold to the belief that a woman will feel more fulfilled in the role of staying home and caring for the home and family while the man goes outside the home to earn.  I am not a chauvinist, and I do not think “stay-at-home-moms/wives” have it “easy,” that couldn’t be farther from the truth.  What I do believe in are the gender differences ordained and given us by God Almighty.  Don’t get me wrong… either spouse can provide, and either can stay home… but we are most interested in how intrinsically fulfilled each of us feel in either given role.

In conclusion…

Living on one income while both spouses earn gives you increased security, speedier debt repayment, more capability to save, give, and retire early.  Living on one income and raising a family will afford you less costs and outsourcing in regard to raising children, lowered levels of household stress, and more time together as a family!

Whichever route suits your family best… don’t the benefits of living on one income sound appealing?  So what are we waiting for?  Let’s start tweaking our budget so we can live on one income and start reaping some of these benefits!

Do you (or can you) live on one income?

We want to be there as soon as possible… so we’re working to get rid of all our debt (and a lot of our possessions.)  We cut costs drastically, are living far below our means, and would probably be fine if we were forced to trim down and live on one income only.

What about you?  🙂