Borrowing money is a process that involves the lender (The person giving the money) to the borrower (Person receiving it). Borrowing funds is something we’ve been doing for thousands of years, and it’s something that may happen to anyone.
Also, contrary to popular belief, it is not always necessary for the borrower to have a good credit score either. However, it can definitely help.
In the past, people have been borrowing money from their friends and family to pay for things.
However, as times change, so do the ways in which people borrow money.
Today, just like most things, it’s about borrowing online.
At least for the 90% of people out there.
So how did people do it before?
It used to be all about taking out a loan from a bank or credit union. If you needed a smaller loan, you would go to payday lenders or loan agencies like them. These are easy online loans, and if you have a job, you will most likely be approved.
This could have been done by going into a branch, and filling out an application form. It was a physical process and involved some time. Little time with payday loan lenders, and way more with banks, etc.
In fact, with banks, it took days.
Keep in mind, people still use these methods. However, the majority does things a little differently now.
It’s all about getting quick cash online.
Today, you can use your computer, or phone, to fill out an application form and then submit it electronically. The process is very quick and easy if you have all of your information ready before you start filling it out.
So what kind of loan should you get? It all depends on your requirements, but most likely, individuals usually get something called a personal loan.
There are many ways to borrow money. One way is through a personal loan, which is when someone takes out a loan from their bank or credit union. Another way is through peer-to-peer lending platforms, which are websites that connect borrowers and lenders online.
A personal loan is a type of loan that is used to finance major purchases such as cars, homes, and vacations. The term of the loan ranges from 12 months to 60 months.
Now what if you just want to pay a quick bill or have a car repair issue that you need to cover right away?
This is where the online payday loan industry comes in.
If you are looking to take care of a bill that is just around $500 dollars, this is the way to go.
All you would need to do is just fill out an application online, or through the company’s mobile app, and you’ll be off to the races. Soon you’ll connect with an online rep, and they will guide you from there. Within minutes, you’ll be leaving with a nice loan.
Now this is one way to do things.
However, what if there was a way where there were no loan agencies involved?
Well there is and it’s called P2P lending.
P2P lending is the process of using the internet to connect borrowers and lenders. With P2P lending, lenders can invest in loans and earn a return on their money.
Peer to peer lending platforms are a relatively new concept in the financial world. They are a form of borrowing and lending that is facilitated by an online platform. The borrowers can use these platforms to obtain loans at lower interest rates than they would get from a traditional bank.
The borrowers create a profile on the platform and upload their credit history, which is then analyzed by the platform’s algorithm. The algorithm will also take into account other factors such as income, employment status, debt levels, etc.
Once approved for a loan, the borrower can choose how much they want to borrow as well as when they want the loan paid back (usually over 12 months).
This is a whole other way of borrowing money and it’s also a game changer.
P2P lending is actually quite popular. Two of these companies are LendingTree, and Lending Club
LendingTree is an online lending marketplace which connects borrowers and lenders.
The company was founded in 1996 by Daniel Gilbert, Rick Sharga, and Paul Rustand. It was originally called LendingTree.com. The company went public on April 29, 1999. LendingTree is headquartered in Charlotte, North Carolina with regional offices in Phoenix, Arizona; Portland, Oregon; San Diego, California; Chicago, Illinois; Atlanta, Georgia; Boston Massachusetts; New York City and Dallas Texas.
LendingClub is an American peer-to-peer lending company that provides loans to consumers.
LendingClub was founded in 2006 by Renaud Laplanche, who had previously founded the online brokerage firm E*Trade. LendingClub’s headquarters are in San Francisco, California. As of December 31, 2016, LendingClub has facilitated more than $5 billion in loans.
Lending Club is a peer-to-peer lending company that provides loans to consumers. It was founded in 2006 by Renaud Laplanche who had previously founded the online brokerage firm E*Trade. The headquarters are located in San Francisco, California. As of December 31, 2016, Lending Club has facilitated more than $5 billion in loans.
Both are massive companies with many more to choose from.
It’s Your Choice
At the end of the day, it really depends on you. With so many choices, it’s all about figuring out what works the best for you, then taking the next steps.
If you are looking for a large loan, the banks are the way. However, if you are looking to cover up some quick bills, then payday loans or p2p lending may be a better option.
So analyze your own situation first, and then you will be in a much better position to make a more appropriate decision.