5 Steps to Peer to Peer Loans

P2P3It’s been years since the banks have been rescued by our tax dollars but it has not changed the lending landscape from the days of the recession. If you need a longer term loan to help you get out of a jam, need to consolidate bills or perhaps it’s time to get rid of all of your credit card debt and live a simpler life. Whatever your need, if your credit is less than perfect there is a good chance that you’ll have to seek an alternative means of borrowing.

One of the most popular alternative methods is peer to peer lenders. Companies like Lending Club, Prosper and Peerform have created a revolution in online lending.

A fresh approach for the cash strapped consumer who has been perceived as undesirable by the banks or the consumer who has given up on working with banks.
What is all about? Like the name says it involves borrowing from your peers and if you have extra cash you may choose lending to your peers. The interest rates for the borrower are better than most conventional loans and for the investors the returns are higher than what the banks are offering.

Here are 5 easy steps to help you with a Peer to Peer Loan.

  1. Do your research, get online and find out everything you can about the various peer-to-peer lenders, which ones lend the amount that you need, what the underwriting process is, do they listen to your circumstance or are they only looking at your credit etc. Read as many reviews as you can written by the people who have gotten loans. Finding the lender that is most likely to give you the loan for your circumstances is job 1.
  2. Go to the website and fill out the application. Take time to prepare what you want the lender(s) to know about you and why you need the loan. This is where you have the opportunity to speak directly to the lenders, be honest even if it embarrasses you. You never know which lender has been in the same situation that you are in and can relate to your circumstance.
  3. Answer the questions to the best of your ability. You may get questions from the prospective lenders or you may need to submit more information or proof of what you have submitted, such as a pay stub.
  4. Some Peer to peer companies can tell you within minutes if they can offer you a loan and what the interest rate is, others may take a day or two, some will send you a notice every time a lender shows interest until the amount you have asked for is obtained. No matter how they do it, it won’t take long for you to get an offer.
  5. Choose the offer that works best for you and have it deposited into your account.

Like all forms of borrowing, borrow responsibly. It’s a breath of fresh air to know that everyday people are lending a hand to others that they don’t even know and may never know.

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24 Comments

  • Cindy says:

    I am in desperate need of about $8000 to pay off some over due bills. I was going through what I thought was a reputable company until they asked for $280 and for me to pay it with the use of a GreenDot card, when I heard that I promptly hung up on them.
    I am really desperate at this point my local school district yearly taxes are due by the end of the year and a few of our monthly bills are past due. I really don’t know what to do.
    I need surgery on my back but I have to put that off since I really can’t afford to be off work for 6 weeks. Right now we could afford $250 a month for the next 3 years.
    If you know somebody that could help us out it would be greatly appreciated.
    Thank you,
    Cindy

  • Linda Warren says:

    I am looking for a small installment loan to catch on back house payments. If there is any way to match me with a lender that is willing to give me a chance , please let me know.

  • Kimberly says:

    Like many others I see here, I too am very desperate, I just want a fresh start, a real one! I have already lost everything and I am working but its so hard to get anywhere making min wage no matter how hard u try! I just want to get into a home cause the streets will soon be my home even tho I’m working! Just don’t know where to turn anymore. Thank you 🙂

  • Richard Deemer says:

    I am in need of a personal loan to pay off some debts and for a home renovation project. Money would be paid back in a short time frame.

  • George says:

    I too am in need of personal loan of 5000 dollars. Can pay back over 12 to 18 months depending on interest. Unfortunately I fell for scam and am in need worse than before

  • Judy varela says:

    I need a loan of 3500 to pay off some bills that got behind on because of health issues at the 1st part of the year. I am fine now but find that I need some help catching up on bills. I am desperate, if I don’t get some help I could be living in the streets. Before this year I always had good credit, but things just got of control. Let me if someone can help.

  • DAVID WILEY says:

    looking to consolidate bills into one, get back to being debt free again

  • Elaine Stephens says:

    I am looking for a loan to help me pay off some of my bills and I can pay them back a little bit each month

  • JDE says:

    I know there are a lot of people in hard times. I usually will fight our way through life’s events. But this time is different. Daughters going through school, life and cancer. Parent going through HVAC issues needing a new one. Car repairs at home and now Christmas. We have adjusted our budget and it will be a tight Christmas but I know it will be worked out. Would like to consolidate 4 loans and pay off several medical bills. Start to get back on track. Make very good money – have not so good credit.

  • Melisa kissley says:

    I am looking for a loan,I am 42yrs old and was diagnosed with breat cancer,so I ffelt behind on my bills,everyone want to charge such I high interest rate.I still work thoughI just need help catching up on my rent the want to repo my car.Its so hard to catch up when you fall behind.Thanks for listening even if I dont get the loan it feels good just to talk about.sincerely melita kissley.

  • Lorie Hayes says:

    My husband and I are teachers. I teach Special Education.
    We badly need a loan to consolidate some bills and payday loans we had to take out.
    We really want a fresh start. We just got married a year ago.
    Thanks for your time

  • KELLY COOPER says:

    Looking for a $3000.For a car. On SSD and was on Cigna disb till they said I was able to work. Not possible use a walker. Sueing Cigna had a professional Dr that did a review declared me 97% disabled and not able to to any job. Expecting a settlement in the next 4 months and then would off the loan. Have no way to get to Drs appointment or groceries with out using friends or a taxi

  • BeckyAK says:

    I am a special education teacher and my husband is a school principal. We have 2 wonderful children and have just recently moved and due to tragic circumstances we both lost our jobs. We have serious debt and recently it seems that the more we try to get ourselves out of this hole the deeper we seem to get. We are in desperate need of at least $20,000 we think a peer to peer loan might be the answer to our prayers. Thank you for posting the articles, we had never heard of peer to peer before finding this site.

  • ALLEN DYLE says:

    I AM IN NEED OF A $1,500 INSTALLMENT LOAN. I RUINED MY PERSONAL CREDIT IN JUNE OF 2014. I HAD A NICE 2007 JAGUAR S MODEL. I WAS COMING HOME FROM VIRGINIA. I WAS IN THE INTERSTATE AND ALL OF A SUDDEN THE ENGINES OIL START BLOWING OUT. WHEN I PULLED OF THE HIGHWAY I PULLED INTO A GAS STATION. I PUT 4 QUARTS OF OIL IN MY CAR. IT WAS TOO LATE MY ENGINE BLEW UP. I DIDN’T HAVE THE $5.500 DOLLARS TO PURCHASE A USED ENGINE WITH A WARRANTY. THE LABOR WAS GOING TO BE AROUND $1,200 TO $1,400 DOLLARS. I HAD TO SURRENDER MY CAR. I AM NOW DRIVING AN OLDER 1997 TOYOTA AVALON. I NEED TO REPAIR THIS TOYOTA AND SELL IT SO I CAN PURCHASE A BETTER QUALITY USED CAR THAT GETS MUCH BETTER GAS MILEAGE. I REFUSE TO TRY TO PAY OVER 390% FOR A PATDAY LOAN. IF YOU HAVE A LENDER THAT WILL LOAN ME THE $1,500 DOLLARS AND THE INTEREST ISN’T SO HIGH. I NEED A RELIABLE CAR FOR MY WORK.THANKS FOR TAKING THE TIME TO READ MY COMMENT. MY FICA SCORE IS 510 509 501. I AM WORKIGNG ON REPAIRING MY CREDIT PROFILE. THANKS

  • Tim Manoogian says:

    I am US Army retired. I have a new job in Barstow Ca. When I returned from Iraq in Nov 2014 I found out my credit was all messed up. I working to fix it. I finally found a place to live and moved my family from the Philippines to Barstow in April 2015. I have drained all my accounts in getting my family set up. I looking for a 7500 dollar loan to get rid of some payday loans and catch up on bills.
    Thank you

  • Glenda Schmidt says:

    I have been trying to get a installment loan so that I can pay off payday loans and a few other loans. I’m in such a financial bind that I can’t get ahead due to the high interest rates that I got into the position of needing another payday loan just to get by. If I could get a loan to pay these off I could get caught up and easily make a monthly payment. Numerous applications for loans has lowered my credit scores. I want to pay these loans off and don’t even want to think about bankruptcy. I want to improve my credit not make it worse. I like the idea of a peer to peer loan, thanks for the information, now I know what type of loan to look for.

  • Kathy B. says:

    High interest rate from several payday loans and having to pay them back every payday is leaving me desperately strapped. I can’t pay the principle down fast enough to bring the interest rate down so I can get ahead. I need about $2200 to borrow right now, I’m steady on my job for 20+ years. Peer to peer loans sound like a good move.

  • Deanna says:

    I am in need of a $2000 loan to catch up on bills. I am partially supporting my father who is in an assisted living facility and I have two children. I recently had some health issues that turned out to not be extremely serious (thank goodness) but I still missed work to undergo testing. I currently work on full-time and two part-time jobs. I think a peer to peer loan is a good choice for me.

  • Aaron Henderson says:

    Hello: I would to try your service, I have been turned by many so called lenders that help in your time of need no matter your credit rating, I fourd out they were full of it. What’s your service like? is it the same as the others?

    Aaron Henderson
    aaronchicago51@netzero.net

    • Hi Aaron,
      We are not a lender, we are here to provide information about loans as well as trusted loan solutions.
      Unfortunately there is no guaranteed approval on any type of loan, even if some companies claim that is what they offer.

      If your credit is less than perfect, and you have a job and direct deposit you may want to try a loan site like BadCreditLoans.com, for your situation you may have a better chance with this type of loan instead of a peer to peer

  • brian cavanaugh says:

    like the rest i need help behind on bills my comp[any just closed after 16 years of working there im 60 years old where am i going to find a job 6 months of unemployment thats it thrown to the curb dont know what to do as for money dont know

    • Hi Brian,

      I am so sorry to hear about your misfortunes.

      If you have a good credit rating peer to peer loans could be a useful tool to help with your situation.

      As for payday and installment loans, they will not be much help because employment is required.

      And if you to not qualify for funding from a traditional loan source but you have a good personality and a social media profile you can try one of the very useful crowd funding sources such as http://www.gofundme.com

      Hope this helps

  • deborah hennon says:

    I need a loan asap I have been trying to build up my credit and I need to pay off some bills. And the number one factor is getting legal custody of my grandson who has been with me for 3yrs. now.