Where to Get a Loan; Help, I’m Really Struggling



I Need Money

I’ve never tackled this subject, but I realize sometimes there are circumstances when you need a loan. You may want to Borrow With Prosper! If you need money to:

  • Take a course which will make you more employable.
  • Build your small business.
  • Pay off all of your debt.
  • Make a home repair.
  • Get out of a short term financial jam.
  • Pay for unexpected medical expenses.
  • To settle with the IRS.
  • Finance an unexpected personal need.

Then you may want to Borrow With Prosper!

In today’s tight money environment, when banks are slow to lend, you might consider borrowing with peer to peer social lending. It’s a relatively new concept where you borrow from regular folks instead of a bank. The lenders benefitbecause they are helping you and they get the interest from the loan. The borrowers benefit because they are able to borrow the funds they need without a bank middleman.

What is the Process to Get a Loan?

Now, this does not mean you just show up and get the cash.

A borrower must have at least a 640 credit score, and the better the score, the lower the interest rate. To get started a borrower completes an online form. Next, the basic information is verified to make sure the applicant meets certain minimum qualifications. As part of the process a borrower must write a statement describing his or her financial need. In fact, since regular folks contribute to your loan, the more specific and well written your description the more lenders will be interested in funding your loan. And after you are approved, your listing goes on line and lenders elect to contribute to your loan. You can even have friends and family contribute.

If you have really good credit, you could get an interest rate for as low as 6.59%, although realistically, most of the rates are higher. Actually, the interest rates can go as high as 30% for someone with very poor credit. But as with any loan, the better your credit score, the lower your interest rate.

Where to Learn More About Peer to Peer Social Lending?

Click on the ”NEED MONEY” picture to get to the Prosper website. Next, checkout their blog, other folks’ loan listings, and get all the information you need. To apply for a loan, just click on the BORROW tab on top. I have decided to try out this concept by lending through Prosper. I’ll be writing about my experiences as a lender in the future.

And, in the meantime, please check out my favorite debt blog, The Debt Myth for really helpful advice.

Have you ever been in a real financial jam? How did you get out of it?

 

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12 Responses to Where to Get a Loan; Help, I’m Really Struggling
  1. Moneycone
    November 23, 2011 | 7:24 am

    I haven’t used P2P lending myself. I’ll be looking forward to your posts on your experience with Prosper!

  2. Little House
    November 23, 2011 | 9:51 am

    I tried P2P lending a little over a year ago to consolidate a high interest loan, but even with a credit score of 700, I wasn’t accepted. I think my loan amount was too high. Thankfully, I had a couple of other options available to me and I took those instead lowering my APR from 29.99% to 6.75% – a huge difference!

  3. Miss T @ Prairie Eco-Thrifter
    November 23, 2011 | 10:20 am

    I too haven’t yet tried P2P lending. It really intrugues me though. I like the concept of it- helping others for good. I too am looking forward to your series on Prosper.

  4. Financial Samurai
    November 23, 2011 | 11:18 am

    I wonder what troubles I will get in if I just set up a bank myself w/in the Yakezie Network.

  5. krantcents
    November 23, 2011 | 11:19 am

    Although 6.59% is not bad, I would rather be a lender than a borrower at that rate. Emergency funds are important for things like this and having access to credit is just as important. Establishing a small line of credit when you do not need it and maintain it for emergencies is a wise move.

  6. Barb
    November 24, 2011 | 10:34 am

    @Moneycone-I just started lending in October, I look forward to sharing me experiences.
    @LittleHouse-I’m glad to hear you were able to secure such favorable terms.
    @Miss T-I like the concept too. Anything bringing people together for a helpful purpose can be a good thing.
    @Financial-I’d call the SEC 1st :).
    @Krantcents-Excellent recommendation.

  7. Lyka Ricks
    November 25, 2011 | 12:28 am

    This sounds new to me, I will be waiting for your next posts on your experience on this online lending.Keep us updated. Are these legitimate?

  8. Marie at FamilyMoneyValues
    November 25, 2011 | 12:33 pm

    Barb, as you do your series, I would be interested in a compare/contrast with the other P2P lending programs out there. I believe there is one called lending tree but don’t know of others.

  9. Barb
    November 25, 2011 | 2:58 pm

    @Lyka, Actually, Prosper is regulated by the Securities and Exchange Commission. I’ve decided to lend with them, but of course, I always recommend you do your own due dilligence.
    @Marie, Actually, there is a blog devoted just to discussing these sites run by Peter Renton, if you want to check it out here’s the link http://www.sociallending.net/.

  10. Glenn Millar
    November 29, 2011 | 3:51 pm

    Great article Barb. And great answers to the questions. I couldn’t have done it better myself.

    We look forward to working with any of your readers whether they are borrowers or lenders. By the way we have a great iPad promotion running right now for new lenders. (Shameless plug.) If you would like you can post a link to the iPad landing page.

    Glenn G. Millar
    Prosper Employee

  11. Barb
    December 1, 2011 | 9:46 pm

    Hi Glenn, I’ve got a link to the iPad promotion for lenders running on Saturday December 2nd. I’m also going to be talking about my experience as a Prosper lender.

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    September 9, 2013 | 2:52 pm

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