When you start shopping for a car, you might be more concerned with additional features and specialty paint jobs than you are about the monthly bill. Unfortunately, the wrong financing can cost you dearly. Compound interest never sleeps, which means that you might be paying much more than you should if you work with the wrong lender. I want to help you to make great financial decisions, which is why I created this website. However, if you can remember a few tricks and keep those payments to a minimum, you can drive away with the car of your dreams without breaking the bank.
When the average individual thinks about a loan, they typically think about the traditional process of securing a loan from a large financial institution. Don't limit yourself. While these types of loans can come in handy, peer-to-peer lending is an option you don't want to overlook. Whether you have never heard of this process or you are somewhat familiar with it, taking a few moments to learn some important fact about this option can help you in your time of financial need.
Under Government Regulation
There is a somewhat common belief that peer-to-peer lending is an unregulated market. With this idea, people fear that should they take out a loan in this manner, they will be violated in the form of unfair practices and excessive fees. This couldn't be any further from the truth.
Peer-to-peer lending practices are managed under the Securities and Exchange Commission, which ensures all lenders are operating under a license and adhering to strict regulation concerning their lending terms and practices.
Less Restrictive Criteria
If you have ever tried to secure a loan through a large financial institution, you know that there can be a fair amount of red tape that you have to navigate through. This is even true when you have a lengthy history with the bank. Peer-to-peer lenders generally have less restrictive criteria.
Instead of solely basing approvals on credit scores, lenders also take into account your work history and debt-to-income ratio. If you are on a path of rebuilding your credit, have a solid work history, and a debt-to-income ratio that would make the loan repayment easily manageable, you might have a greater chance of an approval than with a more traditional avenue.
Greater Spending Freedom
It doesn't matter how qualified you are, when you walk into a bank to secure a loan, they want to know exactly what you plan to do with the money. Whatever you put on your application is what you're limited to. When you apply for a peer-to-peer loan, you have greater spending freedom.
In many instances, the lender is less interested in what you plan to do with the money and more invested into whether or not you can afford to adhere to the loan terms. Provided you can, you have the freedom to do whatever you want with the funds.
If you are in need of extra money, make sure you aren't overlooking peer-to-peer lending as an option to help you meet your goals.
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