Thanks to the internet, there are now many ways of borrowing money.
Including getting a cash advance with no credit through a payday loan agency, or more recently, through millions of other individuals. Thanks to p2p lending.
So what is the difference?
Peer to peer lending is a form of financing that is done without the use of a traditional financial institution. It has been around since 2005 and has grown in popularity over the years.
Peer 2 peer lending is expected to grow by 2022, because it offers an alternative form of borrowing where people can borrow from each other at an interest rate that they agree on.
It’s basically taking on the idea of payday loan lending The growth will be driven by a number of factors, including the increasing size and sophistication of these platforms, their ability to reach more borrowers, and their ability to overcome regulatory challenges.
What are Payday Loans?
Payday loans are quick and easy ways to get cash when you need it. They are short-term loans that you can get in a matter of hours. You don’t need to go through the hassle of filling out paperwork. All you have to do is fill out a form online, and you’re done!
The amount of money that they give ranges from $500-$1000. Payday loans can be used for many different purposes such as paying bills, making car repairs, or even getting some groceries.
Which is Better?
Payday loans are backed by a real funded organization. Which means your funds are guaranteed. On a P2P lending platform, you are dealing with individuals so you never know. It’s all based on trust.
At the end of the day, what matters is what works best for you. Are you looking for a little loan, or a large amount of funding to invest in.
Some prefer real organizations, others trust individuals.
Either way, there are some up and coming p2p lending services.
Let’s have a look at a few of them.
GoPeer is a peer-to-peer lending platform that provides loans to individuals and businesses.
They have a very strong focus on transparency. They have a clear goal of providing the best possible service to their customers by being as transparent as possible.
Peer lending is a new and innovative way of lending money to people who need it. It is a form of crowdsourcing where lenders can lend money to borrowers without the need for a traditional financial institution. In Canada, GoPeer is leading the way with that.
The basic idea behind peer lending is very simple: Lenders invest in borrowers, who offer their loans at interest rates that are usually higher than those offered by banks. This is a great alternative for people who don’t get approved by banks. They can use payday loan services or p2p lending like with GoPeer.
In order to make sure that everyone gets paid back, peer-to-peer lending companies use credit scoring models, and credit reports to evaluate the borrower’s ability to repay the loan.
Lending Loop is an alternative to traditional bank loans. It is a peer-to-peer lending platform that offers unsecured personal loans to individual borrowers.
The company was founded in 2013 by two former bankers, and has since expanded its services to include personal loans, mortgages, and lines of credit.
They might also add online payday loan services but only time will tell.
LendingClub is a company that provides a platform for online loans.
The company’s headquarters are in San Francisco, California.
LendingClub was founded in 2007 by Renaud Laplanche, who had previously founded the European online brokerage firm TradeKing Group. LendingClub is headquartered in San Francisco, California. The company’s services are available to residents of the United States, Canada, Australia, and the United Kingdom.
In 2011, LendingClub was named one of the world’s most innovative companies by Forbes Magazine. Then in 2014, the company was named one of America’s most promising companies by Forbes Magazine.
This ground breaking platform offers an alternative to traditional bank loans for people with less than perfect credit histories or those who don’t have access to a checking account or savings account. You can borrow up to $40,000 with rates as low as 8% APR if you have good credit but rates can climb as high as 29% APR if you have fair credit
Which is the better lending service?
So should you go with p2p lending, or a payday loan agency? Well, at the end of the day, it all comes down to what is right for you.
Who do you feel the most comfortable with?
What is right for your situation?
One thing is for sure, today we have way more choices than we ever did before.
Hope you find what works for you.