Feb 19, 2009
Peer to peer lending is now all but gone; however, for a while, peer to peer lending was the last resort for many in getting a loan. Since banks began reducing the number of loans and stopped taking new applicants, peer to peer lending communities were often times the last place to go. One of these communities, Prosper.com, has changed the language on their application page. It now reads “We are unable to fund your loan at this time. However, Prosper has agreements with trusted partners who will work with you to determine if you can get a loan. If you would like to proceed please fill in the application below.”
So what happened to peer to peer lending? Well, the government basically came in and said individual people cannot judge whether or not to lend other people money. I find this both upsetting and amusing. I was involved in one of these peer to peer lending communities, both as a lender and as a borrower. I thought I was a great judge of who to lend money to! If I had an issue or concern, I could always ask the borrower. I used a loan that I received from a peer to peer lending community shortly after college to consolidate my debts into a lower rate. I am a big fan of the entire experience-from setting up my profile and loan request, to navigating the bidding process-all the way to funding. I received a fixed rate loan, unlike the credit cards, that I planned to pay it off in three years time, unlike the credit cards.
The more and more I look around the web, the less and less places I find that enable consumers to go and get loans. Credit cards are disappearing left and right. Straight up unsecured personal loans are all but gone. Peer to peer lending was the last stop for most people, and now that is gone. With regulators finally getting involved, I guess it was inevitable.
Banks say they are lending again-it’s just that most people are scared to apply. I have actually heard otherwise from the lending community. Banks are just forced to be picker with the criteria of their borrowers. It looks like pay day loans and their dangerous pitfalls are all that is left for most American borrowers who are desperate for money.
What can you do if you are in these tough situations? Before making any move you should always know where your credit stands. You can always sign up for a free online credit report if money is tight. If you find out your credit is in bad condition you are going to have trouble trying to get a loan. Debt management help may be your last resort. Be sure to compare the companies and programs that are out there as some specialize in debt settlement, credit counseling, and bankruptcy.
- Consumers Still Hurting Despite Loan and Card Reforms
- Threat to Your Home Value: The Neighbor’s Mortgage
- Who is Obama’s Housing Plan Really Helping?
- What Does the Latest HSBC News Mean for Me?
- Auto Loan Delinquency Increases
- Larger Banks to Pay Bigger Share in FDIC Levy
- Tighter Credit for American Business Owner
- Credit Card Rate Changes – What Can I Do?
- Fed Tasked to Oversee Systematic Risks in the Financial Industry
- CreditLendingBlog.com’s New Weekly Themes