Is a Peer-to-peer Investment Lending Service a Good Idea?

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.


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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.

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