Does p2p lending work?
With peer-to-peer lending, borrowers are matched directly with investors through a lending platform. Investors get to see and select exactly which loans they want to fund. Marketplace lenders generate revenue by charging fees to borrowers and taking a percentage of the interest earned on the loan.Click to see full answer. Hereof, is p2p lending safe?The…
With peer-to-peer lending, borrowers are matched directly with investors through a lending platform. Investors get to see and select exactly which loans they want to fund. Marketplace lenders generate revenue by charging fees to borrowers and taking a percentage of the interest earned on the loan.Click to see full answer. Hereof, is p2p lending safe?The P2P lending process is safe, but as with making any loan, peer to peer lending involves a certain amount of risk. The best way to mitigate this risk is to fully research the credit rates assigned by the P2P companies, and diversify your funds across several loans.Likewise, does p2p lending affect credit score? P2P loans generally offer competitive interest rates and fixed monthly payments. Applying will not affect your credit score, and the credit requirements may be less strict than at traditional lending institutions. In this manner, can you make money with peer to peer lending? P2P lending can be just as safe as any other investment. No investment is guaranteed to profit every single year. The odds of earning a profit with P2P lending are much higher when you invest in borrowers with excellent credit.Why do people use peer to peer lending?The major benefits of P2P lending for individuals are: Lenders can enjoy returns several percentage points above those for a bank CD; borrowers enjoy similar cost advantages compared with rates at a bank or credit union. Many individuals like knowing who they’re lending money to and why they need the money.
