First of all, what is peer-to-peer lending? It is a type of loan, you will get from a provider, but the funds are obtained from individual clients. Nevertheless, you won’t be responsible for managing the load according to all individuals. The lending institution will do it for you. Investors will still make money, from your interest you must pay. A good thing is that these lending alternatives are new and very useful.
Of course, the biggest question is which lending institution to use. There are thousands of them, so not all are a great choice. We have performed a research and now we will offer you two peer-to-peer institutions which have the most advantages.
Upstart is ideal for loans used to improve your life
The first alternative is a lending institution which specializes in offering loads for personal improvements. In this category, you can expect a loan for paying a student loan, starting a business, prolonging education and etc. Probably the most important reason to choose the Upstart is the fact they will assist you with paying the old debt.
It is mandatory to say that all peer-to-peer institutions will demand serious requirements from you. Upstart is no different. Not only you must provide details about your education, business experience, and other investment data, you will also have to provide a detailed plan regarding the loan and what you plan to do with it.
Another important difference is the explanation of the loan, why you want it. In this matter, you must explain why you decided to apply for a loan and is that your first time to apply for it or not. Maybe this is a time-consuming matter, nothing more, but it is worth it. Upstart has one advantage which is more than just impressive. If your request is approved, they won’t have to wait for individual investors collect the money. You will get it straight away.
Lending Club is superb when it comes to flexibility and competitive rates
Lending Club is the biggest name in the peer-to-peer business. They have more than 20 billion invested in online personal loans recommend by AAA Credit Guide. The main procedure is simple and already known. You can apply for loan and fax or upload the documents via the official website. After that, your request will be checked and approved or declined.
Once approved, you will get several scenarios of the potential loan. It is up to investors and the Lending Club officials to determine which scenarios are possible. On the other hand, it is up to you to choose the one you like the most.
One of the biggest issues with this peer-to-peer institution is the amount of money you can expect. Because it depends on personal investors, the amount you requested may be approved or declined. If declined, you will be able to get a lower loan. Obviously, you will have to wait until your loan is funded. There are no rules with this matter, but it may be within a few days or even a few weeks.
We liked the ability to negotiate in a case you have problems paying off the loan. All you have to do is to contact them and try to find a solution in a form of extending the loan or finding a solution which suits you.
The bottom line when it comes to the Lending Club is that you can get a flexible loan. Everything else is flexible as well and specifically developed to suit you. Getting a dedicated account manager is another advantage we liked, a lot. Let’s add the fact that rates the institution offers are among the best you can get.
Peer-to-peer loan or a conventional one
What to choose? We are definitely for a peer-to-peer loan. There are higher chances that your request will be approved and it is easier to pay off the loan thanks to the flexibility these institutions offer. Compared to conventional loans, where all aspects and elements are straightforward and pre-set, the peer-to-peer loan is definitely a wise alternative.
There is no need in mentioning that this type of loans can be obtained for personal requirements. If you have a need to continue your education or to buy a car, they will assist you without a problem. Furthermore, if you have a decent salary and spotless credit history, you will get constant loans, if you want them.
At the end, we can only deduce that peer-to-peer loans are an improvement of conventional loans and will probably become more and more popular in the near future.