Tuesday, May 22, 2012
P2P and credit-builder loan programs
Consumer Action provides information about P2P lending sites and credit-builder loan programs to help consumers find non-traditional loan options with unique advantages.
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How to find credit-builder loan programs »
Because a strong credit history is so important to financial prosperity, some non-profit organizations offer special loan programs that enable people with credit problems or who are new to the U.S. credit system to borrow and build a credit history even if they wouldn’t qualify for a loan anywhere else. What makes these loans different is, among other things, the emphasis on building credit over simply borrowing money. Consumer Action has compiled a directory (PDF only) to help consumers find these programs in their own state. (We will be updating the directory regularly. If you know of a program that…Peer-to-Peer Lending Survey (June 2012) »
Consumer Action compared the three major P2P lending websites—Lending Club, Peerform and Prosper. Promoted as a more accessible and less expensive option for borrowers, P2P loans have their advantages, but they’re not without their costs—and they’re not an option for all consumers. The publication also contains findings from the organization’s research into legitimate loan alternatives for consumers with no credit history or damaged credit who have few, if any, borrowing opportunities. (The PDF file may contain outdated links.) Table of Contents Peer-to-Peer Lending Survey Breaking barriers to credit Mission possible: Lending circle tradition inspires innovative program Peer-to-peer loan…Survey compares rates, fees and more for major P2P lending sites »
Despite the worst of the financial crisis supposedly having passed, even consumers with a decent credit history are having a harder time qualifying for a traditional bank loan. Some borrowers also are more reluctant to do business with big banks again. One alternative that has been gaining in popularity is online P2P lending (or borrowing, as the case may be). But while the loans may be an easier, faster and cheaper option for some consumers, they’re not going to be the best option for everyone—and they’re not an option at all for some prospective borrowers. Consumer Action took a look…
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