Peer-to-peer investment lending services have become a hot new way to get money in recent years, but is this the best way? The answer depends. The video below contains more information about this topic.
In general, peer-to-peer lending agencies are more willing to lend money than banks. This could be useful if you’ve been turned down by banks or credit unions.
And the interest rates tend to be lower than those at other financial institutions. How can one make sure that they’re picking the right agency? Here’s what to look for:
- Transparency is key. A person must know the exact interest rate they’ll pay and any other fees associated with the loan before one signs on the dotted line.
- Does it look too good to be true? If so, it probably is. A low-interest rate sounds great until one realizes that it’s only for a six-month term, and then it skyrockets after that. Before signing up for a loan through a peer-to-peer service, read all of the fine print.
- Could you make sure they’re legitimate? Do a little background research on the peer-to-peer agency before signing up for anything. You don’t want your personal information to be in the wrong hands. Call home for more details.