Credit Crunch Solution: Peer to Peer Loans
Many folks who have great credit histories and the ability to pay off debts are getting snubbed by potential lenders. The credit crunch has made lenders wary of any borrowers regardless of the borrowers’ ability to repay the loan.
Traditional lending practices have really become conservative. It’s like they’re afraid of their own shadows. One of my fears is taking a job near a city I love (like Portland, Oregon, or Seattle, Washington) and not being able to get a mortgage, even though my wife and my credit scores are very good, we have no history of not repaying our debts, and we have good incomes.
This issue doesn’t just affect mortgages any more. Used to be, a guy could get a single consolidation loan, pay off existing debts with it, and make one payment, often at a lower collective interest rate.
However, the article, Credit Crisis Solution Arises From Unexpected Source, gives some hope.
Peer to peer lending, as it’s commonly known, matches individual lenders with individual buyers in a way that facilitates lending money to people who need it and can pay it back. One of the better peer to peer lending facilitators, Prosper.com, has come to the forefront and can make loans happen for such circumstances.
It’s worth checking out. This is an innovative application of a time-honored method for matching “buyers” and “sellers” of products, services, and securities.