Money is tight these days. As a result, P2P lending is becoming the best choice for some borrowers. The subprime debacle has banks skittish about lending to anybody with poor credit, and low-documentation loans are tough to come by. The Wall Street Journal's Your Money Matters podcast (MP3 file) says there may be another way:
"Need a loan? Talk to Harry in Des Moines."That's right, some ordinary average guy might loan you the money you need. With P2P lending, you borrow from individuals -- not banks. These individuals may have different standards than the banks do, and they may take an interest in your personal story.
One of the most popular P2P lending marketplaces in the US is Prosper.com (who just raised their origination fees -- business must be good). To find out how Prosper.com works, see our guide on Borrowing at Prosper.com and get tips on getting the best loan.
Further reading:
- Borrow from acquaintances (but make it official) with Virgin Money
- Subprime Defined
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