One of the options for a loan is peer to peer. In this type of loan, you actually lend money from an individual without involving any credit union or bank. While shop around for a loan, keep an eye on P2P lenders as they offer surprisingly low-interest rates to people with good credit score. Your loan can even approve if your credit score is not perfect. If you want instant personal loans then you can check myinstantoffer.com
Actually, it works by getting a loan from an investor or an individual. There are not bank involves in this process. Actually, the people who have extra money offers people a loan to get some profit. It all works on an online P2P website. A P2P website platform makes things easier for borrowers and lenders. A borrower or a lender can contact each other with available offers.
Benefits of P2P
There are many great benefits compared to traditional loan methods. In traditional methods, you apply for a loan from credit unions and banks. Then you have to wait for days to get an answer from them. The main benefits are as follows:
One of the benefits of peer to peer loans is that they charge a very low up-front fee. Actually, when you borrow money from the lender, you need to pay an up-front fee. On the other hand, this fee is very high in case of a personal loan. In the case of P2P, you need to pay 1 to 5 percent of the total amount you borrow. Moreover, you may need to pay an extra fee in case your payment is late.
If you are borrowing from P2P then the interest rates will be relatively low. The credit unions and banks have to cover all of their costs of branches and business. So, they charge high-interest rates compare to peer. It is also best instead of having a credit card in your pocket. Moreover, there are often some promotional offers that you should keep an eye on.
Easy and Quick
Finding the loan offers online or offline is a pain in the head. Moreover, the process is not quick and easy. You may wait for days to approve your loan application. It is also a possibility that after days of waiting, they reject your loan application. But that is not the case with P2P loans. The process of applying a loan is very easy and quick. Anyhow, the process may take some time as it depends on the investors whether they want to put their money on you or not. But they decide fast compare to banks or credit unions.
Well, the credit history does matter as it helps decide the lender to approve your loan or not. Those people who have a bad credit score, P2P may be their first and last option for getting a loan. They are even willing to give a loan with people of bad credit score but they will charge high-interest rates. Which looks fair as they are going to take a risk by giving a loan to a person with a bad history. It is their right to compensate for their risk.
At first, the P2P loans were started as unsecured personal loans. Because they lend you money without any collateral. Well, the personal unsecured loans are still in action and the most common one. If you want to go to a college then you can apply for a student loan which you have to pay back after your graduation. First, you need to check whether the lender offers a student loan or not.
How to Apply?
Most of the application processes are online these days. You have to choose the offer and lender and then have to fill an application form. Normally, they require your basic details like your bank account, personal details, and a proof of steady income. Moreover, they will check your credit history and see if you are eligible or not. If you do not have a perfect credit score, which is common with many people. Then they may charge you high-interest rate or may reject your application.