Frugal Feature: How to Take Advantage of On-line Lending

The internet has really changed the way we live in so many ways from job searching, to shopping, to the access of information and now how we obtain loans. While on-line lending is a fairly new industry, there are a variety of options to choose from. The first are traditional lenders that will work with you on-line and give you loans in a traditional manner. The second group is more interesting where you get loans from regular people. This new type of lending is referred to as peer to peer lending. No matter what you choose, you can find loans from the comfort of your own home and even put in bids for lenders to compete for your business on some websites.

Traditional On-line Lenders

Traditional lenders offer quick pre-approvals and applications for many types of loans on their websites. Bank of America, JP Morgan Chase, Wells Fargo and others make it easy to apply for auto, home, personal and business loans on-line from your home office. Typically a representative will call you to finalize the details, terms and required additional documentation once you pass the initial pre-approval stage.

Other ways to find traditional lenders on-line include Lending Tree and Bankrate. These sites make it easy for you to compare rates, fees and requirements across many lenders. This gives you an advantage to select the best lender to meet your needs. In addition, these sites and others give you the opportunity to enter some basic information and let lenders compete for your business.

There are other sites that are even more niche like Profitech Online Loans – South Africa which offers loans to specific clientele. Take some time to research these many options if you’re considering a loan with a traditional lender.

Peer to Peer Lending

A new industry is springing up which is allowing ordinary people to loan money to other individuals for anything from down payments on a house, wedding funds, cars, home remodeling and more. Sites like Lending Club and Prosper are leading the way into this new exciting area of getting money, especially for people who can’t find money from traditional sources. In addition, it’s a very simple process for borrowers. To get the process started, a borrower enters some basic info on what they need the loan for and how long they will take to pay it back. They then submit some financial info to the website on their income and expenses and their credit score is checked. The website then puts them into a bucket that has an interest rate attached to it. The rating system is similar to how bonds are rated. The highest rated loans get a grade of A. The next level is B and so on. Borrowers who are rated an A might only pay 6% on their loan while B rated customers will pay a little higher rate such as 6.7%. While these rates are higher than some types of loans, they are unsecured and less expensive than hard money loans or credit cards if you have good or excellent credit.

Finding money on-line has never been easier. By exploring these new exciting avenues for loans, you too can find the money you need at better rates and terms than ever before.