Business and Management

The Perks Of Peer Money Lending

More and more consumers are turning to Peer lending services as a solution for their borrowing needs. There are many sites like which deal with Peer lending services. This trend is a direct result of the policy decisions of banking and credit cards.

First, consumers face increasing challenges with the tighter lending environment. Consumers are better able to secure a personal loan or wind up paying less than the desired rate. In addition, credit card companies have lowered credit limits, increasing the penalty fees and raising interest rates.

crowdlending guide

Peer lending services compete with traditional banks and credit card companies because they do not have the same overhead and operating costs as brick and mortar counterparts. As a result, they can pass these savings for the lender and the borrower in the form of lower service costs and higher profits.

This does not mean that every borrower receives the loan. The borrower must still meet certain requirements before receiving a loan. This requirement may be different across different companies ranging from a minimum FICO score, debt to income threshold, and certain standards around credit delinquency, questions, and utilization.

For investors, the main attraction of loans is a chance to get a higher return than they would receive in traditional savings or certificate of deposit. With this higher return, investors will also receive an additional risk.

Doug Parks