From www.huffingtonpost.com -
Interest rates are set based on the borrower's credit score and investors have the option to choose the risk level they're willing to take. And rather than fronting the money for one loan, an investor's funds will be split across a number of loans, each of which he can review and approve.
Avant loans to borrowers with 580+ credit in up to 24 hours. Learn more now...
Editor’s Notes: Summary of the 5 benefits for loan seekers...
- Attractive Interest Rates - Peer-to-peer platforms offer loan seekers very competitive interest rates based on their credit history and payback timeline. For example, Prosper currently offers a baseline APR of 6.73% APR.
- Quick Funding Speed - Borrowers don't have to endure a long waiting period to receive the funds they need.
- Ability to Tell Your Story - P2P lending gives you the chance to explain why you have bad credit, allowing investors to see the moral of your story, not just the numbers.
- Fewer Fees to Pay - Peer-to-peer lending sites like Prosper and Lending Club charge just one origination fee to screen borrowers and issue loans.
- P2P Loans Are Significantly Cheaper than Credit Cards - Borrowing from peer-to-peer loans can be up to 70% less than credit cards loans.