If you're in need of a personal loan, you might want to consider taking out a peer-to-peer (P2P) loan instead of a traditional bank loan. P2P loans are loans that you obtain online through a P2P lending service. The loans are funded by individual investors instead of by the bank. You make payments to the P2P lending company each month, which they distribute to the people who invested in your loan. Learn more about how getting a P2P loan can benefit you.
Low Interest Rates
The main benefit of getting a P2P loan is that you'll most likely get a lower interest rate than you would if you take out a personal loan through a bank. Interest rates on P2P loans are typically less because P2P lenders have less overhead than banks, so they can afford to lower the interest rates. So, before you start applying for loans, check the interest rates from your bank and compare them to the interest rates at some of the major P2P lending websites to see who has the lowest rate.
Your Rate Doesn't Increase
Many people use low-interest credit cards to consolidate debt or make large purchases. However, credit cards that offer low or no interest typically only do so for a limited amount of time. In order to take advantage of the introductory rate, you need to pay off your balance for the time is up. P2P loans have fixed interest rates, so your interest rate will not change throughout the duration of your loan.
Quick and Easy Application Process
When you apply for a P2P loan, you won't need to spend hours at the bank. You apply for the loan by filling out a simple online application. In addition to entering your information into an online form, you might be asked to upload or email paperwork to the P2P lending company to verify who you are, where you live, and your annual income. Once your documentation is reviewed, your eligibility is determined. If you're approved for a loan, the money is automatically transferred into your bank account.
It isn't always easy to find a personal loan with a good fixed interest rate, and if you do, you'll most likely have to take paperwork to the bank to apply. Peer-to-peer loans eliminate unnecessary hassles and may offer you a lower interest rate than a bank. So, before you apply for a personal loan, take some time to compare a traditional bank loan with a peer-to-peer loan to see what option is best for you.
Share8 July 2016
When it comes to borrowing cash for a new house or a nice car, how much money do you really need? Although you might be tempted to mortgage yourself to the brim or borrow a little more than you should, the fact of the matter is that everyone has financial limits. My blog discusses the impact of borrowing more than you need, so that you can make smarter decisions with your money. In addition to keeping you out of trouble, this valuable information might also improve your quality of life and protect your financial future. You never know, it could make all the difference.
