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Best P2P Lending Platforms in 2021

11.19.2021 by Harry //

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

Categories // Earn Money, General, Savings Tags // loans, Money Management, p2p lending

Earn High Returns with Peer Lending

04.04.2011 by Matt Jabs //

Back in 2009 I was the guy borrowing from peer lending investors.  Not anymore baby!

Investing in peer loans is paying me about $25/month… and that number grows with every loan I invest in.

Invest in peer lending

Peer lending is just another term for peer to peer lending, social lending, p2p lending, etc.

Now-a-days I’m the guy getting paid to loan money… and it feels really, really good.

One way I invest – and earn high returns – is by using peer lending platforms to loan money to people who are in the same position I used to be.  I enjoy doing this for two main reasons:

  1. I can help them get out of debt.
  2. I can earn high returns on my money.

I usually stay away from loans (a.k.a. notes) being used to finance things, like weddings or automobiles, and stick primarily to debt consolidation loans and sometimes business loans.

How much you earn will depend mostly on the notes you choose, how you choose them, and your use of the secondary market.

How much I earn with peer lending

I currently have nearly $4,000 invested in 90 notes.  I have had one note default and am earning a NAR (net annualized return) of 8.55%.

The average peer lending investor earns approximately 10% on their investment… so I’m a little behind the curve, but I’m learning – and will take a 8.5% return any day.

To date I have earned $212 in total interest… and I’m pulling in about $25 in interest a month, and this number grows monthly as I invest in more notes.

Tips for earning higher returns

Here are a few tips for those who want to start investing with peer lending:

  1. Before you choose loans be sure to pick solid criteria then save the criteria search.  I will elaborate more on this in a future post dedicated wholly to the subject, but for now just understand that you can filter the loans based on criteria like “no defaults in the past 3 years” and “credit scores of 700+”, etc.
  2. Keep an eye on the notes you invest in and resell troubled notes on the secondary market.  Again, I will drill down on specifics later, but just be aware that selling troubled notes on the secondary market is a crucial part of earning higher returns.  Don’t be intimidated by this either because it’s easy peasy, all you basically need to do is pick the loans you want to resell, price them at a discount and click “submit”.
  3. Diversify your notes.  By this I mean to invest in notes of different grades to balance risk and returns.  Peer lending platforms grade the loans based on borrower credit history and allow you to drill into the details and pick loans paying higher returns while still offering less risk – they’re there, you just have to look.

Those are the basics.  Feel free to ask questions in the comments section below.

How you can get started with peer lending

If you like the returns peer lending is delivering and want to get started, there are two companies I recommend in full confidence… Lending Club and Prosper.

Personally, I have more experience investing with Lending Club, but know both companies are sound and proven, so choose Prosper if their platform suits your needs better.

Categories // Investing Tags // Lending Club, p2p lending, peer lending, prosper, social lending

Debt Help – The Lending Club DebtBuster Challenge

12.22.2009 by Matt Jabs //

Don’t you just love the Christmas holiday?  Trees, lights, carols, cookies, cards, sacrificial giving, decorations, cookies, time off work, and time spent with family and friends… eating cookies.

Did I mention cookies? 😉

Considering how this time of year conjures up visions of sugar plums dancing through our heads… how did buying things people do not need with money we don’t have ever become synonymous with this season of charity, joy, and sacrifice?

Though this is a question more and more of us are starting to ask ourselves, I suppose we can leave the how and why of it up for debate another day and instead focus on debt solutions, debt help, and debt relief.  After all… if we’re honest with ourselves, dealing with debt head on is exactly what we need to do.  Debt is never going to just go away, we have to make it go away.  Credit card debt is never going to pay it self off, we have to make ourselves pay it off.  We can never start winning with money until we stand up, take responsibility for our debt, and start taking steps in the direction of responsible debt reduction.

This spirit of passionate debt reduction is the exact focus of the latest move from Lending Club.  They are currently sponsoring a cool promotion to help get you on the path of responsible debt reduction and throwing in some cool freebies along with it.

Introducing the Lending Club DebtBuster Challenge!

What is it?

  • From now until January 15th Lending Club is encouraging us to be responsible and commit to taking the DebtBuster Challenge to consolidate debt, manage debt, reduce debt, and eliminate debt once and for all.
  • This is a program they have created to raise debt awareness and encourage personal fiscal responsibility during this holiday season… and far into the future.
  • Go to the Lending Club website to check rates based on credit score and credit history and secure a debt reduction loan with Lending Club.
  • Sign up today and they will send you a nifty Lending Club t-shirt or back pack.

What is Lending Club?

  • Lending Club is a peer to peer lender who facilitates the borrowing and lending of money between individuals, thus bypassing traditional banks and all the headaches that come along with it.

Why Lending Club?

  • I keep saying “we” and “us” because you are not alone… I’m right here with you on this.  I secured a debt consolidation reduction loan through Lending Club back in August of this year and wrote all about it in my Lending Club Review.
  • Lending Club offers better rates and less hassle than borrowing from traditional banks.
  • And because I know all to well that debt reduction and elimination is exactly what many of us Americans need to be focusing on.

Join Lending Club for Debt Help

I am proud to be part of the Lending Club DebtBuster Challenge and am not alone in offering this wonderful promotion to you.

I am partnering with Lending Club themselves and the 4 other top DebtBuster bloggers to offer advice and encouragement for those committed to debt reduction during this holiday season.

As always, keep an eye on our blogs over the next few weeks for articles to help encourage your passionate move toward debt reduction and debt elimination.  A time or two each week we will be specifically addressing those who committed to taking the Lending Club Debtbuster Challenge.

Sign up and take the Lending Club DebtBuster Challenge

Do not put off your debt reduction any longer!  Now is the time and this is the opportunity.  Join me and thousands of other responsible and committed Americans as we get Lending Club on our side, commit to the DebtBuster Challenge, and make the move toward freedom from debt using the power of peer to peer lending.

Helpful DebtBuster Links

  • Official Lending Club DebtBuster Press Release

Other participating DebtBuster Bloggers

  • Getoutofdebt Guy
  • Consumerism Commentary
  • Debt Kid
  • The Digerati Life

Categories // Debt Tags // Debt, Lending Club, p2p lending, social lending

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Disclaimer

Content on Debt Free Adventure is for entertainment purposes only. Rates & offers from advertisers shown on this website may change without notice: please visit referenced sites for current information. Per FTC guidelines, this website may be compensated by companies mentioned through advertising, affiliate programs or otherwise. We respect your privacy. Privacy policy.

Popular Posts

  • Lending Club - My Review of Social Lending
  • Understanding & Improving your Cash Flow
  • Credit Card Debt Reduction Handbook
  • Our Monthly Debt Reduction and Savings Statements
  • Pay off Credit Cards VS Build Emergency Fund Savings - Me VS Suze Orman
  • Credit Cards - Close 'em Shred 'em & Forget 'em!
  • More Reasons to Pay Off Credit Card Debt
  • Wise Use of Paid off Credit Cards? You Decide.
  • The Whole Armor of Personal Finance
  • One World Currency - New World Order
  • Debt Testimonials - Encouraging Success Stories!

Disclaimer

Content on Debt Free Adventure is for entertainment purposes only. Rates & offers from advertisers shown on this website may change without notice: please visit referenced sites for current information. Per FTC guidelines, this website may be compensated by companies mentioned through advertising, affiliate programs or otherwise. We respect your privacy. Privacy policy.

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