If you need a personal loan but don’t have the best credit, or even if you have great credit, it can be very time consuming and stressful to have to go to a bank and apply for a loan, and even after going through all that, you may not be approved or your rate may be higher than you were expecting. But if you need a loan, where else do you go besides a bank? You go where the bank gets its money from; to people who have extra cash and want to get a decent return on it in exchange for letting the bank get use of that money during the time they hold it.
The bank is really a middle man. It collects cash from people who have it and lends it out to people who need it. A middle man always adds expense to a transaction, however, so why not cut out the middle man and go directly to the source? That’s right, borrow money directly from other people rather than going through the bank.
By borrowing money directly from other people, you don’t have an added layer of expense and, therefore, are more likely to get a better interest rate. Another benefit of borrowing money directly from other people is that it’s a lot less hassle! You don’t have to go through a lengthy application process only to be rejected. When borrowing money directly from other people, your chances of getting the loan increase because the people who have the money WANT to lend it to you so they can collect on the interest.
So how do you go about borrowing money directly from other people? You could always go to family members or friends but they may not have the money you need or it would be very burdensome to them, not to mention the possibility of ruining relationships if things don’t go as planned. With a new internet service named Prosper, however, you don’t need to worry about trying to get money out of mom and dad or your best friend.
With Prosper you fill out a simple online application and you will instantly have people from all over the country bidding to fund your loan. Also, because there is so many people bidding for your loan, chances are your rate will be better than you could have gotten at the bank.
I have personally borrowed money from Prosper and I can tell you its a great service. I took out a loan of $1000 and was able to get a rate of only 7%, though I have very good credit and the markets are constantly changing so you’re rate may be higher. If you sign up through this posting, you will automatically be added as a friend of mine on Prosper and will be able to see for yourself the details of my loan as well as my investments (that’s right, you can be the lender on Prosper as well!).
All Prosper loans are for a period of 3 yrs and are paid monthly. You can pay off your loan any time before the 3 yrs is up without a prepayment penalty. Please note that I am not a financial advisor and am simply recommending a service I found to be useful. Please thoroughly read through the terms and conditions on Prosper website before signing up or applying for a loan. I hope to see on there soon and wish you the best of luck with your loan.