Peer-to-Peer Lending and Personal Loans Just Got Easier

Green Cash key on a computer keyboard with clipping path

Anyone who has tried to get a loan lately can tell you: banks are not cooperating. Even those with stellar credit are running into roadblocks. Now, with peer-to-peer lending, you don’t need the banks to get a loan. Using the same analytics the banks use, Credit Sesame, in partnership with Lending Club, can help you find the best deals in peer-to-peer lending and personal loans.

Register today to get your free credit score and loan recommendations based upon your financial profile.

What is Peer-to-Peer Lending?

It’s old-fashioned virtues meets online speed and sophistication. Instead of going to a bank for a loan, you go to your fellow man. Instead of investing in stocks or bonds, you invest in the people of your community. And Credit Sesame helps bring the two together, in partnership with Lending Club.

How Does Peer-to-Peer Lending Work?

Peer-to-peer lending works similarly to traditional lending with financial institutions. Individuals are given a loan based on their creditworthiness. However, with banks and corporate lenders, interest rates are higher because they factor in the money they need to make to cover overhead costs (i.e. staff, buildings, etc). With peer-to-peer lending, borrowers work directly with other people who are lending money. Borrowers apply for loans, while lenders open investing accounts. The two are matched through the site, allowing borrowers to receive funds and investors to start building a portfolio. Payments are automatically deducted, making building credit easier for borrowers. Lenders, in turn, see a return on their investment and have more funds to reinvest.

How Can Peer-to-Peer Lending Save Me Money?

To make a profit, banks must account for infrastructure, high administrative and marketing costs. Peer-to-peer lending isn’t saddled with those burdens. Credit Sesame can recommend personal loan rates, starting at 6.78 percent. Compare that to the national average of 12.38 percent and you can see why it pays to register with Credit Sesame. Using peer-to-peer lending or personal loans may lower your payments if you are looking to consolidate high interest credit cards.

Can I Use Peer-to-Peer Lending with Bad Credit?

In order to protect investors, Credit Sesame uses Lending Club’s eligibility standards for borrowers. Borrowers’ credit scores don’t have to be perfect, but then the underwriting is stricter. For example, borrowers with a credit score of 660 would also need a debt-to-income ratio (excluding their mortgage) at or below 25 percent. The credit history of borrowers will also be checked for bankruptcies in the last seven years, current delinquencies, open tax liens and any collections accounts (excluding medical costs). However, if your credit score is below 660, don’t be discouraged. Check out these tips to quickly improve your credit score.

Getting Started With Peer-to-Peer Lending at Credit Sesame

Signing up is free, no strings attached, no pressure or guilt, and super easy. Just for trying it out, you also get your free credit score no credit card required and a place to see your finances, all in one location.

  • Featured Credit Card