3 Steps to Getting the Most Out of the Social Lending Experience as a Lender
Now, we just wrote a guide on how to get the most out of social lending if you’re a borrower, but that’s only half the equation. Without lenders, there can be no borrowers. You can actually get a lot done by becoming a borrower, but you can also get a lot done being a lender. For starters, you will be helping a group of people really get their loans taken care of in a big way, which will help you feel better in the long run. When people don’t have any other source to go to, you will be part of the group that funds their loan and helps them accomplish a goal they thought they’d never achieve.
If you’re just getting started, you might be interested in the three steps to getting the most out of the social lending experience as a lender.
First and foremost, you will want to get started with the community first. This will give you a chance to really figure out what you want to do with your time, and it will also give you plenty of time to figure out what you need to do in order to shine as a lender. Because you will be making interest off the loans in question, some people are very selective on whether or not they want to accept you as part of their loan. Some social lending sites let the borrower have good control over who will ultimately fund the loan in question. On other sites where you are the sole lender, you will be the sole recipient of the lion’s share of the interest.
You can share pieces of your life that you’re comfortable with, in order for people to see that you really aren’t someone that is trying to destroy people, or make them feel small. A lot of people coming into social lending as borrowers feel like they’re going to end up being at the mercy of yet another evil lender that is going to look over their numbers and nothing else.
Social lending is better than that, and you will need to show borrowers that you believe wholeheartedly in that spirit by looking at each loan as its own unique snowflake in the winter of social lending. For example, someone might have a low credit rating, but a high income. They’re just looking for a way to pay down their debts and improve their credit score over time. If you help them, you will not only make some interest from the money borrowed, but you will also be able to tell people that you’re truly making a difference.
Now, one step that you will need to take is to upload your own financials to the social lending site of your choice. You don’t want to just settle for not doing this, because borrowers will want to make sure that they are actually going to get the money that you pledge to send. You can post proof of a special bank account. You don’t have to lose all of your financial privacy. In fact, most people on the site will not see the specifics — just the site administrators.
Finally, you will need to make sure that you are going over everything you submit in order to make sure it’s correct. This doesn’t just mean your initial lender application, though it helps to check over that as well. Ultimately, you get from social lending what you put into it. If you approach people the right way, they will love having you as a lender. On the other hand, if you just try to go in with a selfish attitude, you will get back nothing but fear and resentment.