Peer-to-Peer Lending Sites Review - Full Disclosure

peer to peer lending sites

Peer-to-Peer Lending Sites Review...

This peer-to-peer lending sites review is long overdue. Why? Well, it's simple.

Now that the general public is coming to understand that there is a new financing option available in the form of peer-to-peer loans, the next question becomes "Who are the best peer-to-peer lending sites?" Well that is the question that The Lending Mag will answer in this EXTENSIVE peer-to-peer lending website review.


We will focus on educating you about social lending sites in the U.S., we will soon follow up with a peer-to-peer lending sites UK review.

If you have any confusion about what p2p lending actually is, please refer to this article first to get clarification and then come back to read this review. You can also find information about what makes p2p lending different from crowdfunding websites. Peer-to-peer loans offer a wide range of flexibility, depending on which lending site you borrow through, you can take out as little as $1000 and even up to $300,000 for certain types of loans. The largest peer-to-peer lending sites have special arrangements with healthcare providers to offer medical loan funding in order to service borrowers in need of more than $35,000. On average, p2p loans usually fall between $10,000-$15,000.

Some of the varying factors between the various peer-to-peer lending sites can make a big difference in customer satisfaction and ultimately decide whether the experience meets your expectations or not. Because we want you to know what to expect from the best peer-to-peer lending sites, we will show you the detailed differences in each of the following categories for every website.

Peer-to-Peer Lending Sites: Details Given For Each Platform

  • Maximum Loan Amount Available
  • Minimum Loan Amount Available
  • Average Time to Receive Funds (in days)
  • APR
  • Interest Rate
  • Term of Loan (years)
  • Minimum Credit Score Required
  • Maximum Debt-to-Income Ratio Allowed
  • Loan Type (Secured or Unsecured)
  • Application Affect On Your Credit
  • States Eligible To Borrow From p2p Lending Sites In Question
  • Origination Fee
  • Late Fee
  • Unsuccessful Payment Fee
  • Check Processing
  • Application Fee Charge
  • Prepayment Penalty Cost
  • Best Method of Contacting Their Support
  • Prospective Customer Experience

Our Best Peer-to-Peer Lending Sites Review Process

When rating peer-to-peer lending companies for this detailed review, we wanted to consider lending platforms that offer personal loans as well as business loans. The best peer-to-peer lending sites are known for ease-of-use, low interest and low fees. Most of the p2p lending sites on our list charge origination fees, this is standard for the industry. Origination fees usually range between 1%-6%, a couple of the companies waive the origination fees but it's important to calculate the entire cost of your loan instead of only focusing on a waived origination fee.

In order to help you understand what you will be dealing with when you apply for a peer-to-peer loan, we assessed the level of customer service that we personally received from interactions with them.

One of the most important aspects that we used in determining the best peer-to-peer lending sites is their transparency and ability to live up to their marketing claims according to what their former clients say about them.

This review is focused on using peer to peer lending sites for borrowing purposes. If you are looking to borrow money with peer-to-peer lending companies you will find the info you need, if you'd like to learn more about investing through peer-to-peer lending you can check out our p2p lending tips article.

Best U.S. Peer-to-Peer Lending Sites for Borrowers

#1 Prosper Marketplace - Peer-to-Peer Lending Sites Review

peer to peer lending sites reviewProsper Marketplace is The Lending Mag's first choice among U.S. peer-to-peer lending companies for borrowers. This popular p2p lending platform made history in the United States when they became the first peer-to-peer lending site in the country in 2006. Since that time, Prosper has experienced tremendous growth and success, having recently surpassed $3 billion in loans. Recently, they were named by Forbes as one of the most promising companies in America.

Prosper places as number #1 on our list of p2p lenders because of the accessibility and attention to customers that they provide. Out of all the peer-to-peer lending sites we have had interactions with, Prosper representatives were the most accommodating and reachable. You don't feel like you are dealing with a cold, unreachable entity. You can sense the humanity behind the big name and they are there to help you. Here are more details about Prosper's peer-to-peer lending site:

  • Maximum Loan Amount Available: $35,000
  • Minimum Loan Amount Available: $2,000
  • Average Time to Receive Funds (in days): 4 to 10 days
  • APR: 6.73% to 35.97%
  • Interest Rate: 6.05% to 31.90%
  • Term of Loan (years): 3 or 5
  • Minimum Credit Score Required: 640
  • Maximum Debt-to-Income Ratio: 30%
  • Loan Type (Secured or Unsecured): Unsecured loan
  • Application Affect On Your Credit: None
  • States Eligible To Borrow From p2p Lending Sites In Question: 47 + DC
  • Origination Fee: 1% to 5%
  • Late Fee: Greater of $15 or 5%
  • Unsuccessful Payment Fee: None
  • Check Processing: $15
  • Application Fee Charge: None
  • Prepayment Penalty Cost: None
  • Best Method of Contacting Their Support: Phone

#2 Lending Club - Peer-to-Peer Lending Sites Review

p2p lending sitesLending Club is an absolute giant in the US peer-to-peer lending space. You really can’t talk about U.S. peer-to-peer lending without mentioning them. Their peer-to-peer lending platform was founded shortly after Prosper in 2007, they've actually surpassed Prosper in the amount of loans funded. Many p2p loan investors feel that Lending Club's website has the best user interface and it definitely has the largest and most impressive 3rd-party investor ecosystem.

In December of 2014 Lending Club had a wildly successful IPO on the NYSE, becoming the first publicly traded online peer-to-peer lender in US history. If this peer to peer lending site review was focused on investing, Lending Club would probably have been ranked #1. But getting approved to borrow through Lending Club can be a bit more difficult than with Prosper, knocking them to number #2 on our list from a borrower's perspective. Here are more details about Lending Club's peer-to-peer lending site:

  • Maximum Loan Amount Available: $35,000 ($300,000 for business loans)
  • Minimum Loan Amount Available: $1,000 ($15,000 for business loans)
  • Average Time to Receive Funds (in days): 4 to 10 days
  • APR: 5.99% to 32.99%
  • Interest Rate: 5.9% to 25.9%
  • Term of Loan (years): 1, 3 or 5
  • Minimum Credit Score Required: 660
  • Maximum Debt-to-Income Ratio: 35%
  • Loan Type (Secured or Unsecured): Unsecured loan
  • Application Affect On Your Credit: None
  • States Eligible To Borrow From p2p Lending Sites In Question:
  • Origination Fee: 0.99% to 5.99%
  • Late Fee: Greater of $15 or 5%
  • Unsuccessful Payment Fee: $15
  • Check Processing: $15
  • Application Fee Charge: None
  • Prepayment Penalty Cost: None
  • Best Method of Contacting Their Support: Phone

#3 Upstart - Peer-to-Peer Lending Sites Review

If you've recently graduated from college, you probably don't need us to tell you how hard it is to convince a bank to give you a loan. Young people fresh out of college don’t usually have the type of income needed, enough credit history or a high enough credit score to get a reasonable loan rate, if you can get a loan at all.

This is where Upstart steps in. This innovative peer-to-peer lending site began facilitating peer-to-peer loans in April 2014. They aim to help those who are under-served by traditional loan companies but are filled with potential. Instead of only judging creditworthiness from your credit score, employment history and income, Upstart looks at a wide range of nontraditional factors in order to determine whether you should get a shot at getting your loan funded. These other factors include which college you graduated from, your grade point average and it's possible that they even take your SAT scores into account.peer to peer lending sites upstart

Upstart prides itself on looking past the cold numbers and saying yes to your requests when other lenders say no. Most of Upstart's borrowers use the funds as debt consolidation loans in order to pay off high-interest credit cards, but you can use the funds as you please.

This fast-growing peer-to-peer lending site is becoming popular among Millennials especially because they are often in a situation where they don't have a long track record of credit history and are often offered very high loan rates because of it. Taking a bad loan at an early age can easily set your financial life on the wrong road and Upstart realizes that such poor options are not necessary or fair.

Company officials have expressed that the company’s loan products are meant to serve a young and potential-laden population that is very likely to build a solid credit profile in the future, but just hasn’t had the opportunity to do so yet. By using their sophisticated algorithm to decipher key data, the peer-to-peer lending site is able approve the extension of consumer credit at affordable rates to young borrowers who are well-positioned to handle the loans responsibly.
Here are more details about Upstart's peer-to-peer lending site:

  • Maximum Loan Amount Available: $35,000
  • Minimum Loan Amount Available: $3,000
  • Average Time to Receive Funds (in days): 2 to 16
  • APR: 5.67% to 29.99%
  • Interest Rate: 5% to 25.26%
  • Term of Loan (years): 3
  • Minimum Credit Score Required: 640
  • Maximum Debt-to-Income Ratio: 40% to 50%
  • Loan Type (Secured or Unsecured): Unsecured loan
  • Application Affect On Your Credit: None
  • States Eligible To Borrow From p2p Lending Sites In Question: 50
  • Origination Fee: 1% to 6%
  • Late Fee: Greater of $15 or 5%
  • Unsuccessful Payment Fee: $15
  • Check Processing: $15
  • Application Fee Charge: None
  • Prepayment Penalty Cost: None
  • Best Method of Contacting Their Support: Phone

#4 Funding Circle

p2p lending sites funding circle href="https://www.fundingcircle.com/us/blog/"rel="nofollow">Funding Circle is one of the world’s biggest peer-to-peer lending sites that actually focuses primarily on small business loans. They have a US counterpart to their peer to peer lending UK branch. They've facilitated more than $1 billion in loans to more than 8,000 businesses in the US and UK combined. Today, 40,000 retail investors (normal people), major banks, financial institutions and even the UK Government are lending to small businesses through the Funding Circle marketplace.

Funding Circle is intensely focused on helping small businesses get loans through their p2p lending site because they have roots in small business. Their U.S. co-founders started the peer-to-peer lending site because they were small business owners themselves, they were getting rejected for small business funding at every turn and after getting rejected for small business loans nearly 100 times, they realized something was very wrong with the traditional bank lending system, it was internally flawed. They saw first hand that even when you have a growing and successful business venture that’s doing well, it's still far too difficult to get a business loan. From that point forward, they were more determined than ever to build a more sensible small business loan solution for American business owners.

Here are more details about Funding Circle's peer-to-peer lending site:

  • Maximum Loan Amount Available: $500,000 for business loans
  • Minimum Loan Amount Available: $25,000 for business loans
  • Average Time to Receive Funds (in days): 5 to 14
  • APR:
  • Interest Rate: 5.99% to 20.99%
  • Term of Loan (years): 1 to 5
  • Minimum Credit Score Required: 620
  • Maximum Debt-to-Income Ratio: Not Disclosed
  • Loan Type (Secured or Unsecured): Secured loan
  • Application Affect On Your Credit: Hard pull on your credit
  • States Eligible To Borrow From p2p Lending Sites In Question: 47 + DC
  • Origination Fee: 2.99%
  • Late Fee: 10%
  • Unsuccessful Payment Fee: $35
  • Check Processing: $0
  • Application Fee Charge: None
  • Prepayment Penalty Cost: None
  • Best Method of Contacting Their Support: Phone

#5 Peerform

peerform p2p Lending Sites reviewPeerform was started by Wall Street executives with extensive backgrounds in Finance and Technology in 2010, the peer-to-peer lending site's creators saw an opportunity to make funding available to borrowers when they noticed that banks seemed unwilling to lend to people and small businesses in need.

Peerform has built a good track record of giving borrowers an opportunity that the banking system had denied them and a very positive experience when seeking unsecured personal loans through an online lending process that is transparent, fast and easy to understand.

To apply for an online peer-to-peer loan from Peerform, you fill out the application on their site and they will make a soft pull on your credit to see if you meet the minimum requirements for a loan. They are one of the few major peer-to-peer lending sites that accepts borrowers with FICO scores as low as 600. Those who qualify for a loan have their loan request posted on the website and it stays active for 14 days while peer-to-peer investors decide if the loan is an attractive investment or not. If your loan is fully funded within the 2 week time period, you'll be contacted by Peerform to approve and accept the loan. If your loan is not fully funded in the 2 week time period but has raised at least $1,000, you may choose to accept or reject the lesser amount. It is completely your call, you are not obligated to accept the loan. If you do choose to accept the loan, it will be deposited to your bank account within a few business days.

When we tested their customer service and contacted Peerform, we had positive experiences both via email and on the phone. After sending an email we received a written response within 24 hours, and most of our questions were answered to satisfaction. When talking to them by phone, we noted that the company rep was very knowledgeable about the loan process and able to give helpful answers. Their site also provides all of the most important information you'd need to know about their peer-to-peer loan process, including APRs, interest rates, potential loan amounts and fees, etc. You can also contact a customer rep using the live chat option they have on the website. Here are more details about Peerform's peer-to-peer lending site:

  • Maximum Loan Amount Available: $25,000
  • Minimum Loan Amount Available: $1,000
  • Average Time to Receive Funds (in days): 2 to 16
  • APR: 7.12% to 28.09%
  • Interest Rate: 6.4% to 25%
  • Term of Loan (years): 3
  • Minimum Credit Score Required: 600
  • Maximum Debt-to-Income Ratio: Varies
  • Loan Type (Secured or Unsecured): Unsecured loan
  • Application Affect On Your Credit: None
  • States Eligible To Borrow From p2p Lending Sites In Question: 23
  • Origination Fee: 1% to 5%
  • Late Fee: Greater of $15 or 5%
  • Unsuccessful Payment Fee: $15
  • Check Processing: $15
  • Application Fee Charge: None
  • Prepayment Penalty Cost: None
  • Best Method of Contacting Their Support: Phone

#6 Sofi

peer to peer lending sofiSofi is a highly respected marketplace lending website, with nearly $3 billion in peer loans issued to this date.

They made it onto this peer-to-peer lending sites review because they do a good job at assisting early stage professionals accelerate their success with student loan refinancing, mortgage refinancing, mortgages and unsecured personal loans.

Their nontraditional loan underwriting approach takes into account merit and employment history among other determining factors, in effect, allowing their peer-to-peer lending site to offer loans that often are hard to find elsewhere.

Here are more details about Sofi's peer-to-peer lending site:

  • Maximum Loan Amount Available: $100,000
  • Minimum Loan Amount Available: $5,000
  • Average Time to Receive Funds (in days): 3
  • APR: 5.5% to 8.99%
  • Interest Rate:
  • Term of Loan (years): 3, 5 or 7
  • Minimum Credit Score Required: Varies
  • Maximum Debt-to-Income Ratio: Varies
  • Loan Type (Secured or Unsecured): Secured loan
  • Application Affect On Your Credit: None
  • States Eligible To Borrow From p2p Lending Sites In Question:
  • Origination Fee: None
  • Late Fee: Lesser of 4% or $5
  • Unsuccessful Payment Fee: $15
  • Check Processing: $15
  • Application Fee Charge: None
  • Prepayment Penalty Cost: None
  • Best Method of Contacting Their Support: Phone

News & Education Sources About Peer-to-Peer Lending Sites

A wide variety of news and education sources are now available to help you understand what is happening in the world of p2p loans and peer-to-peer lending sites. So let's get talk about them.

Lend Academy

Peter Renton of Lend Academy is the Godfather of U.S. peer-to-peer lending info. On top of that, he's a really good guy. His website is the most complete peer-to-peer lending info site on the web, he's also co-founder of the LendIt USA conference. Peter and the Lend Academy blog have set the standard in the p2p blogging world and thousands of people that need to learn about peer-to-peer lending turn to his information source. Peter Renton helped The Lending Mag when he had nothing to gain from it and that is what his website is about, giving without asking back. Please visit and support his website, it is truly a treasure-trove of information covering the most influential peer-to-peer lending sites in the industry.peer to peer lending academy

Lend Academy also has an active p2p lending forum with a diverse community of new-to-advanced retail p2p lenders discussing nearly every subject that touches on peer-to-peer lending. It has forum sections dedicated to both Prosper and Lending Club, as well as all the major investment and analytic tools.

You can find his p2p lending forum here: LendAcademy.com/forum

Crowdfund Insider - U.S. Peer-to-Peer Lending Sites Review

Crowdfund Insider is an extremely valuable alternative lending news information source. They cover various aspects of fintech news and they do so on a very consistent basis. Peer-to-peer lending sites get a lot of news coverage on their site, if you are trying to keep up with what's happening at Prosper, Lending Club, Zopa, Funding Circle and the rest, Crowdfund Insider will likely have the fintech industry news that you are looking for.

peer to peer lending crowdfund insider

Check out their peer-to-peer lending info here: CrowdfundInsider.com

Orchard Platform - Best Peer-to-Peer Lending Sites Review

Orchard Platform is another pillar in the peer-to-peer lending sites community. Though their main offering is technology for the use institutional investors, Orchard’s peer-to-peer lending blog has continued to be a great source of unbiased analysis of Prosper and Lending Club's open data.

p2p lending orchard platform

Check out their informative p2p lending blog here: OrchardPlatform.com/blog/

P2P Lending Sites Analytics & Investing Tools

Prosper and Lending Club both allow access to their peer-to-peer lending sites through API and make their loan data openly available to the public. This has enabled other companies and websites to create products that analyze the information to help p2p investors make better investments. Other companies have created tools to help retail p2p investors compete with institutional investors for the best loans through automation. Here is a list sites that make p2p lending easier for you.

NSR Invest

p2p lending sites nsr investNSR (short for Nickel Steamroller) is the long-standing and most popular data analytics tool for peer-to-peer loan investors.

They have an extremely accurate and fast back-testing tool that helps investors understand the data history of loans made on the 2 major U.S. peer-to-peer lending sites.

You can input the different loan type variables into their tool and see how they performed to get a very accurate idea of how your future investments will perform.

They also offer in depth charts of p2p lending industry growth, the most advanced portfolio analysis tool in the U.S., and fund management for accounts over $10,000.

Check out NSR Invest here: www.nsrinvest.com

LendingRobot

lending robot p2p lending sitesLendingRobot is a new company that has been very well received by investors that need an efficient auto-investing option. LendingRobot's investment tool automates Prosper and Lending Club investments so that you don't get left with scraps after the banking institutions snap up all of the best loans with their in-house investment automation.

You can set your specific filters to auto-invest in loans that fit your criteria, and they even have an Estimated Return parameter that invests through an algorithm that allows you to increase your ROI. They have pre-set filters for both aggressive and conservative investment strategies that you can use if you don't understand loan filtering very well or if you simply don't want to bother with it.

LendingRobot also allows you to automatically place your loans for sale on the Folio secondary market. This auto-investing technology services Prosper and Lending Club loans.

Check out LendingRobot here: www.lendingrobot.com

BlueVestment

This auto-investing site has been a staple of the peer-to-peer lending sites community for many years. Its API is trustworthy and extremely fast, it grabs the loans you want to invest in reliably quick and it has many loyal users among p2p investors. This auto-investing service works with Lending Club only.

bluevestment p2p lending sites - Peer-to-Peer Lending Sites

Peer-to-Peer Lending Sites Review

Check out BlueVestment here: www.bluevestment.com

PeerCube

peercube p2p lending sitesOf all the peer-to-peer lending auto-investment tools on this list, PeerCube is likely the more detailed tool of the bunch.

It has very indepth and descriptive info charts for every aspect of person to person lending investments: from which year of your p2p investments were the most successful to the average markup of loans on the Folio secondary market.

PeerCube's service also has the capability of taking this detailed analysis and automatically investing in peer-to-peer loans for you at both Prosper and Lending Club.

Check out PeerCube here: www.peercube.com

PeerTrader

peer-to-peer lending sites review peertraderPeerTrader allows free auto-investing and analytics on Prosper's peer-to-peer lending site, even through Dr. Bryce Mason’s trusted P2P-Picks algorithm.

This peer-to-peer lending automation website offers real-time monitoring of all loans that are available on Prosper Marketplace’s lending investment platform.

This p2p auto-investment service works with Prosper Marketplace only.

Check out PeerTrader here: www.peertrader.com

 

Peer Lending Server

peer-to-peer lending sites review peer lending serverPeer Lending Server differentiates itself from the other auto-investing options. It's different in the sense that it runs through your home computer.

There are two main advantages to this, first of all, your API key and password are kept private. Secondly, loan automation happens through your setup alone.

No other peer-to-peer lending investors will be in line in front of you, which Peer Lending Server views as a way of helping you make loans quicker. Like other auto-investment tools, you can analyze historical loan data and invest through your own specific filters.

Check out Peer Lending Server here: www.peerlendingserver.com

Interest Radar

peer-to-peer lending sites interest radarInterest Radar was the first lending tool to allow automated investing on Lending Club's p2p platform, their tool also has a a lot of secondary functionality.

Interest Radar also has a large following because they offer auto-sell features for Lending Club Folio accounts. For example, if one of your p2p loans drop to a level that you aren't happy with in FICO, Interest Radar can automatically place your loan on the secondary market while you do other things with your time.

Check out Interest Radar here: www.interestradar.com

Peer to Peer Quant

peer to peer lending sites p2pquant

Peer-to-Peer Lending Sites

Peer to Peer Quant's tool is one of the most fascinating on this list. Why? Because it only does one job — it invests your money through what they call their “genetic algorithm”.

According to the Peer to Peer Quant site, this is a more advanced, more technologically savvy algorithm than other automated lending solutions. Read more about their methodology here. Their system works with Lending Club investments only.

Check out Peer to Peer Quant here: www.peertopeerquant.com

Lending Alpha

Lending Alpha is a new auto-investment service that works with Lending Club loans and their tool is free. Their company offers peer-to-peer lending investors another way to quickly and automatically invest via an advanced lending algorithm.

Check out Lending Alpha here: www.lendingalpha.com

Stay tuned for our UK peer-to-peer lending sites review!

 


Interested In Investing or Borrowing From Peer-to-Peer Lending Sites?

If you would like to apply for a peer-to-peer loan from one of the top 2 U.S. peer-to-peer lending sites you can do that here. Peer-to-peer lending is an exciting new option for borrowers and investors, to receive a loan quote from Lending Club or Prosper does not affect your credit. Choose from the options below.

Your financial opportunities have never been greater with the growth of peer-to-peer lending sites in the U.S., see how you can take advantage of it today.


 

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