Loan Lenders

Loan Lenders

Peer-to-peer lenders that are on the internet

Prosper and Lending Club that is an example of online lenders that are of peer-to-peer type are becoming more and more popular over the years. To get an approval for this type of loan it takes a little longer than personal loans, generally 1 week or more. If your credit score is not perfect these internet lenders are the best and easiest option for you. 640 is the cutoff credit score that is typically required for this, not only this but there are few lenders who will even consider people with credit scores as less as 600. The rate of interest is also low compared to the traditional bank. In fact, they offer flexible terms for repaying the loan sometimes, but the majority of the online lenders usually provide a fixed type of terms for the loan. There are some fixed online trading robots that are genuine. When you take a loan from the local banks, you can negotiate the terms with them, but with online lenders, the terms are the short-term type. The local banks will give you an extension on the term for a loan up to 5 years, but the online lenders will very rarely extend the terms for more than 3 years.

Steps involved in applying for an online loan

  • Go to the desired website.
  • Register by filling out the application for the loan similar to that of a local bank.
  • There is a fee known as loan origination fees that are required to be paid for a majority of peer-to-peer lender’s websites. The fees are from 0.5% to 4.5% of the loan amount.

Payday lenders or cash advance lenders

This is the last place you can try for a personal loan. But this type of loan is only good if you are willing to borrow a very less amount of cash which you should repay in the short period of time, usually a couple of weeks’ time. Suppose the customer’s credit score is not up to the mark and need to pay huge bills like, house rent, electricity bills and all, payday lenders will offer you with good options but you should be ready to pay a huge price in order to borrow from here. You are expected to repay as much as 125% of what you have taken or even more than this sometimes, and this is just for the payday type of loan. On the other hand, if you choose to go with online lenders, better get ready to pay a huge origination fee for the taking the loan.

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