Getting a Personal Loan Without Any Credit

How to Get a Personal Loan With No Credit

About 5 years ago I really needed a personal loan. I began trying to get a payday loan. These loans were so expensive it was nearly impossible to pay them back by payday. I began doing research on the internet. I looked at every website there was regarding lending money. There was only one site that had any possibility. Before I tell you the name of this site, let me explain my situation.

I needed to get a loan for about $3000 to purchase a car. My paycheck was certainly not enough to cover this amount. I did not have good credit so I could not go to a bank or finance company without having money to pay down on the car. I also did not want a loan which would be more than 5 years long. I could not get a cosigner.

I finally found this site which only did peer to peer lending. This means that members of the site were allowed to loan money to each other. This was not some bootleg organization. The borrower and lenders were connected through the site. The name of this site is Prosper. This is how the process works.

You go to the website, establish an account as a borrower, make a listing (type in a request for the amount of funds needed) In this listing be sure to include how much money you need, what you will be using the money for, and the maximum interest rate you are willing to pay. If you choose you may register to become a member of a certain group. For example if you attended University of Georgia, you may be able to find a group of individual who also attended UGA. You may have a better chance of getting the loan if you are a member of this group. However, you do not have to join a group to request a loan. You should also decide how long you want your request to run on the site.

The lenders will then go on the Prosper site and review all requests for loans. They may decide to lend as little as $50 to an individual borrower. When enough lenders pledge to lend enough to total 100 percent of the loan request, the loan is approved and the person gets funded by direct deposit to their bank account.

Example: The borrower requests a $2000 loan. One person pledges $200, another pledges $100, another pledges $50, and so on until a total of $2000 is pledged. The borrower is then sent an e-mail indicating that his loan is ready to be funded. He then downloads and signs the electronic loan statement. His money is then sent to his bank.

Every month the borrower's checking account will be debited with a monthly payment until the loan is paid in full. All transactions are completed through the Prosper site so that both the lender and borrower are safe. You should review the website for any additional information.

A borrower can have up to two loans at one time. So, if you need a loan but do not have great credit you should try this out.


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