Social Lending for Borrowers
If you are looking to borrow money then you may be unsure as tow here to turn. Although banks are supposed to be lending more freely, it is still quite difficult to get money form them these days, especially if you have a bad credit rating or no collateral. The interest rates are sometimes quite high as well, even though the base rate is low at the moment.
A way of lending, which many people may not have heard of is social lending. This is where you go to a social lending company and are paired up with someone who is prepared to lend you money. This could potentially be a friend or family member or it could be an acquaintance you know through a social networking site. It could even be a complete stranger.
One of the main advantages of using a social lending company is their interest rates. Because the lenders are competing for your business, they even have an auction to choose a lender, you can end up with lower interest rates. It could be worth taking a look at a few of them to find out more about how they work and whether they have better rates than you can get elsewhere.
If you have a bad credit rating then you may find that the lenders are less likely to want to give you a loan but they might be prepared if the risk is spread across several different lenders or maybe if the interest rate is a bit higher.
It can certainly be worth taking a look at this option and see how it compares to your other options. You can calculate the cost of borrowing this way and you may find it cheaper than a credit card, overdraft or bank loan. It is certainly a better option than going to a loan shark.