What is Peer to Peer Lending?

Peer to peer lending allows you to skip the bank and borrow from individuals. You can borrow from complete strangers or just use peer to peer lending services to structure loans between friends and family.

The main attraction of peer to peer lending is that borrowers can often get lower rates on loans. Think about selling something on eBbay - potential buyers bid up the price of your item in an auction, and you end up getting fair price. Peer to peer lending is similar - lenders bid for your loan (by offering lower interest rates) in an auction and you end up with a pretty good deal.

Find out how peer to peer lending works, the major services, and how you can take advantage of it.