Alternative Lending Sources?

Discussion in 'Private & Conventional Lending Discussion' started by ebargan, May 25, 2014.

  1. ebargan

    ebargan Member

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    I was just wondering if anyone here has had any personal experiences using alternative or online loan companies like lendingclub or prosper? I try to stay ahead of the trends and I'm intrigued by some of the competitive rates I've seen advertised, but I worry about exposing myself to unknown risks or complications by attempting to use these loans over ones from conventional brick and mortar banks. Any advice?
     
  2. crimsonghost747

    crimsonghost747 Senior Investor

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    With the interest being what they are nowadays... I'd play it safe and stick to normal banks. They will give you around 3% interest, it's not like these alternative ones can go much lower.
     
  3. JackHark

    JackHark Active Member

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    Yeah and I would be concerned about borrowing from the alternative ones... You hear of dreadful stories about people not paying back on time. I don't know how much validity there is in regards to those stories, but I'd rather just play it safe
     
  4. JR Ewing

    JR Ewing Super Moderator Staff Member

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    If I was going to borrow money, I wouldn't care who I borrowed from - local or national bank, broker, or whoever. It would be all about the lowest rate and best terms, basically.

    But if your situation is riskier than average for whatever reason, you might not be able to borrow from a bank. I'd just make sure you check any company out to make certain they're probably legit before you give them your social security # and any other personal info.
     
  5. Silver

    Silver Active Member

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    I don't think there's anything wrong with peer-to-peer lending networks. Just make sure to read the fine print before committing to anything. Just like you would do with a regular bank.
     
  6. Dex

    Dex Member

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    I've used Lending Club twice and then invested. No complaints here
     
  7. alexisfinch24

    alexisfinch24 Well-Known Member

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    I have got a few very good loans from the online companies that I didn't regret one bit. I would say just like with any bank you need to research and, make an educated choice as to which you decide to go with. Usually if it seems to good to be true then it probably is.
     
  8. dianethare

    dianethare Senior Investor

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    I have tried my luck at borrowing but never succeeded, so i just stopped altogether, and it has nothing to do with my credit score as that is clean, i never understand, maybe regulations and procedures did change with the times and am still in the dark ages, all the same, i 'd rather hustle than pay with interest later!
     
  9. richc3

    richc3 Senior Investor

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    If you don't mind sticking your neck out, you can try 0% APR balance transfer credit cards. I've taken out $14,000 before, placed it in a dividend yielding stock, and fortunately had some growth as well. At the end of the year when I had to pay it off, I was able to pocket a sizeable chunk of all that. Of course, then the company offers me another 0% APR for another year and here we go again, haha.

    I know others that have done the same, but put it towards their mortgage or a down payment.

    Beyond that though, I haven't tried lending club or alike.
     
  10. Rosyrain

    Rosyrain Senior Investor

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    I have done some research on the peer to peer lending sites and have heard that the lenders can be quite vicious. If you are 1 minute late with your payment, they are all over you. I would probably stick with traditional bank lending. It just seems to be the safest bet, and you can adjust your interest rates when things go down as long as you are in good standing with the bank.
     

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