Top Rated Peer-to-Peer Lending Sites: A Guide to Online Borrowing and Investing
Top Rated Peer-to-Peer Lending Sites
What is Peer-to-Peer Lending?
Peer-to-peer lending is a method of debt financing that enables individuals to borrow and lend money without the use of an official financial institution as an intermediary. This type of lending is typically done through online platforms that match lenders with borrowers.
How Does Peer-to-Peer Lending Work?
In peer-to-peer lending, borrowers create a listing for a loan request, including the amount they need and the purpose of the loan. Investors then review these listings and choose which loans to fund based on the risk and return profile. Once the loan is funded, borrowers make monthly payments that are distributed to the investors.
Top Rated Peer-to-Peer Lending Sites
LendingClub
LendingClub is one of the largest peer-to-peer lending platforms in the United States. It offers personal loans, business loans, and auto refinancing. Investors can earn solid returns by funding loans with varying risk levels.
Prosper
Prosper is another popular peer-to-peer lending platform that offers personal loans with fixed interest rates. Borrowers can apply for loans up to $40,000, and investors can diversify their portfolios by funding multiple loans.
Upstart
Upstart is known for its use of artificial intelligence in the underwriting process, allowing for more accurate risk assessment. Borrowers can receive loans for various purposes, such as debt consolidation, home improvement, and education.
Peerform
Peerform is a peer-to-peer lending platform that focuses on debt consolidation loans. Borrowers with less-than-perfect credit can still qualify for a loan, making it a good option for those looking to improve their credit score.
StreetShares
StreetShares is a peer-to-peer lending platform that caters to small business owners, veterans, and active-duty military members. Investors can fund small business loans and earn competitive returns while supporting veteran-owned businesses.
Conclusion
Peer-to-peer lending sites offer an alternative way for individuals to borrow and lend money outside of traditional financial institutions. By using these platforms, borrowers can access funding at competitive rates, while investors can earn attractive returns by funding loans. Consider exploring these top-rated peer-to-peer lending sites to see if they align with your financial goals.