Bank Of America Student Credit
Lending criteria have been tightened in recent years due to rising levels of default amongst existing customers. According to Renaud Laplanche of Lending Club: "As the financial crisis becomes deeper and more challenging, even for creditworthy clients, it's hard to get funding." Although the cost of peer-to-peer loans has also gone up, they represent a viable unsecured bank loan alternative. Rather than borrowing money directly from a bank, it is possible to get a low interest unsecured loan from a regular person for up to $25,000. Person-to-person loan lenders do perform credit scoring in order to categorise the risk that a customer poses.
Low Interest Unsecured Loans from a Person-to-Person Lender
The leading lenders in America are Prosper.com and Lending Club; Zopa.com meets the needs of UK customers. As Bao Ong of Market Watch stated: "As more peer-to-peer lending companies pop up, they offer varying approaches. Some help set up loans between family and friends; others cobble money from many lenders for a loan between strangers." Unlike unsecured bank loans, peer-to-peer lenders use a number of small investors to meet the demand for a cash advance. Although only fair, good and excellent credit score applicants will be accepted so the risk is reduced, this approach to lending is designed to prevent a single lender from losing out completely.
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