One of the most common questions that we get when it comes to newcomers asking about social lending is simple: what can you honestly ask for funding to do? The answer is simple: anything that you can possibly think of that other people are willing to invest in.
There are some common examples of great proposals that usually end with funding. Below is a few of these examples for you.
1. Debt Consolidation
Debt consolidation is probably one of our favorites. When you have a lot of debts, chances are also good that you have a lot of interest. When you have that type of interest, you’re not going to be paying down a lot of the principal. It’s all going to be mostly interest, which is profit for the lender and not you. You want to flip the equation so that when you do make monthly payments it actually goes to the right place. Do you really want to find that you just can’t seem to get ahead? Not at all. It would be a lot smarter to make sure that you are looking into every option to reduce your debts.
Social lending loans for debt consolidation come up a lot. It’s very hard to make sure that traditional lenders see the purpose of what you’re doing, and it’s easy to get rejected — especially if you have bad credit. Many social lenders have been in your shoes, so they’re not very likely to reject you just because you have had bad credit in the past. That would be a little ridiculous.
Instead, they’re going to look at your entire application and see if you’re going to be the type of person that will truly repay the loan in full. That’s what matters — your dream plus your willingness to get things moving along.
It can feel next to impossible to get everything sorted out, but it’s always worth looking into!
2. Home Renovation
If you’ve always wanted to repair your home but you never really had the money in your savings, why not look into a home renovation loan? These can be both secured and unsecured. Unsecured loans are a bit tougher because you really have to stress that you’re ready to take on that type of burden. However, what about when you go with secured loan? Even though these loans are much more serious, they really do make all of the difference when it comes time to actually meet your goals. The more work that you put into getting them, the easier life will be once you have the funds.
Make sure for this type of proposal you really tell the story of what you’re willing to do in the home. Otherwise it just looks like you’re trying to get a bunch of money to just blow on anything that catches your fancy. Not the impression that you really want to give, especially when it’s your first proposal.
We’re not saying that you can’t have fun with the money that you receive once you have everything finished elsewhere — but in the beginning, you want to make sure that every last bit of the money you request to be funded go to your original purpose.
3. Going Back to School
Going back to school is a classic social lending request. Everyone wants to go back to school and get a better paying job. It’s going to be up to you to really make sure that you’re able to have a good start to your education. This means that you must have the funds up front. Getting the money up front gives you more flexibility over your education anyway. You can pick and choose the classes that you want and avoid the ones that you really don’t — as long as you still get your required courses in, naturally!
4. Certifications / Job Training (non-college)
Even if college isn’t your thing, there might be a certification track that you’re interested in. For example, if you’ve always wanted to be a personal trainer, you’re going to need to get certified. That’s going to give you the power to pull in not only more clients, but clients that are willing to pay a lot more money. If you don’t take the steps to secure your career, you’re essentially limiting how much money you can honestly make.
Vacations might sound a little funny to ask for funding for. But what if you have the idea for your dream vacation? This is something where social lending tends to kick in better than traditional lending. Instead of hoping that some bank sees that you are a good customer and gives you a good deal, you will want to widen your net so to speak and really look through all of your options.
We know how hard it can be to work with traditional sources of financing, so why not take your dream to the world of social lending? You will be able to really get people into it by posting pictures, and really explaining why you want to go to this destination.
The more effort you put into selling your dream to others, the more likely it is that you’re going to get financed. All you can do is make sure that you push forward and try your best. What else could you possibly do that can be better than that? Good luck with your search!