Peer to Peer Lending Introduction

Summary: Peer to peer lending can be a great way to make money for lenders and for borrowers to get help without using a bank.  We’ll explain how it works.<br> Peer to peer lending is basically crowdsourcing loans. Crowdsourcing or crowdfunding, means getting a bunch of people together to create something. <a href="https://www.kickstarter.com/" target="_blank" rel="noopener">Kickstarter</a>  is a crowdfunding site that allows creators to raise money for different projects.<br> In the past, if you wanted a loan for a house, car, home repair, and consolidating credit card debt, you had to go to a bank and apply for a loan.  The bank could approve or deny based on your credit history, how much you make, and what your overall financial situation looked like.<br> Now, sites like Lending Club put the big scary banks aside and allow real humans to lend you money. As a borrower, you can now apply for a loan that could be funded by a bunch of personal investors instead of one big bank.  Just like any loan, you pay it back with interest.<br> For investors, this is very appealing, because they can lend a few borrow small amounts and continuously collect interest as the borrower pays back the debt.  Lending Club has collected tons of data on the borrowers which gives lenders a lot of information when deciding whom to lend to.<br> About 50% of LC loans are people taking loans to pay off their credit card debt at a much lower interest rate. If you are struggling with credit card debt, LC will be a great option for you.<br> LC works with defaulted borrowers to help get them back on track.  Their success rate is better than that of credit card companies.  LC will work with a borrower in default rather than just harassing them with threatening phone calls.<br> Andrew is killing it with LC, he’s averaging 18% returns.  Investing in this type of peer to peer lending is not for beginners.  There is some risk involved.  But if you have a few extra bucks to play with that won’t hurt too much to lose, give it a try.<br> Show Notes<br> <a title="Lending Club" href="https://www.listenmoneymatters.com/go/lending-club/" target="_blank" rel="noopener">Lending Club:</a>  Crowd sourced loans.<br> <a href="https://www.listenmoneymatters.com/lending-club-investors-secret-weapon/" target="_blank" rel="noopener">Andrew’s Article:</a>  Andrew details the success he has had as a LC investor.<br>  <br>