Do you find yourself in need of $100, $500 or similar small amounts? Have you found that even with good credit, you do not qualify for the traditional loan? Today’s economy has prompted people to find alternative ways to make and borrow money. When these two come together, it can be in the manner of a Private Lending Club.
Have you or someone you know recently come into a bit of cash. You need to determine how to maintain this cash, yet make more money off of it. When the banks are paying you less than one percent return on your money, private individuals are seeking alternate way to grow their money.
On the other hand, there are those individuals who have good to excellent credit, yet they find banks rejecting their applications for a loan. Even minimal loan request are being denied. So, what does a person in need of a few hundred dollars do?
The answer is private lenders or lending clubs. Over the last year, with the economy as it is, people are in need. Before, they could turn to a bank to borrow a few hundred dollars at good interest rates. Depending on their credit history, a loan would be granted and within a couple of hours, you had your check and were on your way.
Not any more. Today, even with a credit score in the six hundreds, most individuals with no collateral or a job are being turned down. The need for even $100 or $200 is being rejected and out the door, these people are going. Some are in desperate needs of money. Some for food or other reasons unimaginable before the Bush era.
There is hope for these individuals. With a credit history evaluation, private lenders can provide the money you need. This form of borrowing offers two advantages:
1) Lender Advantage – The lender is gaining interest on their money at a rate much higher than federally regulated institutions are now willing to provide. CD’s are being offered with gains only at 1.75% if that much and Savings accounts are gaining even less.
2) Borrower Advantage – With a reasonable credit score and the ability to explain why any negative scores show up, a borrower can get his money wired into his account within minutes. The lender simply okays the loan at the interest rate shown and your money is released to you.
There are only a few reputable clubs operating presently.