Peer to peer lending platforms make it easy for you to borrow money from other persons as well as companies. In fact, millions of peer to peer investors are available to lend out their money. Some of these platforms are also available for borrowers with a bad Credit history.
The most popular peer to peer lending companies are Lending Club, Prosper, and Upstart. Of these it is Upstart that is available for you if you are looking for Peer to Peer Loans For Bad Credit.
Here is everything you need to know about peer to peer lending for bad credit.
Peer to Peer Lending Bad Credit
The peer to peer lending industry is online based, via websites and apps. This means you don’t meet the investors face to face. All loans are also examples of unsecured loans. This means that there is no collateral that is required.
Therefore, the platform where you can find these p2p loans usually prefer people with a high credit score. For Lending Club, the minimum FICO score is usually 600, which is considered as being average. For Prosper, the minimum credit score is 640. Upstart however does it differently and is the way to go for p2p loans with bad credit.
Using Upstart for Borrowing with Poor Credit
Upstart is a relatively new peer to peer lending company. It is different than other platforms. It looks at more than just the credit score in determining if you can borrow money or not. The company has developed quality artificial intelligence and machine learning tools that analyze you based on a number of factors. These include: age, education level, gender, and work. After looking at all these factors, the platform will then accept you, even if your score is not that high.
Getting a Loan With Bad Credit
Other than peer to peer lending marketplaces, you have more options of getting funding if you have a bad credit score. Other options you should use are credit unions, which are financial institutions organized as non-profits. They are established to serve their members. Second, you can use any financial institution such as a bank and take a secured loan. This is a loan that has a collateral such as a car or a home. Finally, you could consider a co-signer. This is a person who acts as a guarantor for your loan.
For more information about these options, check out the information on How to get a personal loan with bad credit?.
Credit Score improvements
As you go through the process of having a bad credit score, your goal should be to improve your credit score. To do this, you can follow our guide. For one, you need to ensure that you have paid your bills on time. You also need to fix all the errors that are in your credit reports. Finally, you should take advantage of credit-boosting programs.