When you landed on this post, you probably must have been considering a move for Peer to Peer borrowing.
Maybe you’re not well-conversant with how Peer to Peer lending works and need to get facts right before you can make your feet wet.
Or you have made up your mind to go for p2p borrowing, but not sure whether your reasons for taking the loan makes sense.
Glad you’re here because all those answers you need are here.
First, let’s know what p2p loans are and how they work before we can dive into the nitty-gritty of this subject:
What are P2P Loans?
Whether you’re an investor or a borrower looking to start his business or pay off a huge debt, this is one of the million-dollar questions that have caused you sleepless nights.
P2P loans are loans awarded to individuals or businesses who request and qualify for them online.
Usually, these loans aren’t secure and therefore have high chances of default, especially if borrowers are not adequately screened before loan award.
That said, P2P loans are only awarded to those who meet the ‘bare minimum’ – one of the requirements being a good credit score.
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How P2P Loans Work
P2P loans are a bit different from the traditional loans offered by conventional banks.
With Peer to Peer loans, borrowers visit P2P lending sites (online), fill a form with their details and the correct amount of credit they need.
This information is made available to investors who then choose which loans they can invest on.
In a well-established P2P lending site, borrowers can access up to $35,000, and the term of the loan could run between 3-5 years.
To this far, you now know:
- What P2P loans are
- How P2P loans work
Therefore, without further ado…
Sensational Circumstances When You Should Consider Taking a P2P Loan
1. Medical Reasons
It’s everyone’s wish never to fall sick, but statistics reveal that 95 percent of people experience some medical issues.
Whether you eat healthy meals or exercise daily, medical issues still arise, and accidents don’t choose between the rich and the poor.
Diabetes treatment is also sometimes a crapshoot – you’ll need to have money in your account for regular treatment continually.
All these imply that you need regular funding; and if you don’t have a good job; which of course, pays well, you may consider P2P loans.
2. Baby and Adoption Loans
There are as many as 140 million orphans worldwide who need care just like your kids.
These poor boys and girls did not choose to be orphans – it happened because death doesn’t choose who to take and who not to take.
Fortunately, today, you can borrow P2P loans to raise such children and help them realize their dreams, maybe at Hunstanton primary school.
Even though raising children is a long journey and requires a huge sum of money, taking a P2P loan can trim down your final expenses.
Besides, the government offers up to $12,500 adoption credit for people who wish to adopt children and raise them.
Honestly, there is no point of your children suffering if there are options like these. Take the step and apply for a P2P loan today.
3. Debt Consolidation
Whether you’re trapped in a loan shark that trims up to 30 percent of your income every month or you still have pending student loans, seeking a P2P loan is by far the best decision you’d make.
Having pending loans, especially those that slash your income every month and leaves you with nothing can disorganize your plans.
Instead of suffering in total silence, you’d better opt for a peer to peer loans to help you trim down part of your outstanding loans. This will not just give you peace of mind but will also give you the chance to plan and bring back the plans you had before succumbing to loan repayments.
4. You Intend to Start Your Own Business
To start your own business is one of the American dreams – that’s why up to 57 million Americans are freelancers; controlling their own business and charging rates they choose.
But starting your business can be a nightmare if you don’t have the starting capital, and that should be an obstacle either.
Applying for a P2P loan is a good reason to make you realize your business dreams. Maybe you only need to carefully research the best business you’d want to venture in before you can opt for peer to peer loans.
5. Buying a Car
Technically, this is my worst reason for taking a P2P loan, unless a car directly contributes to your income; for example, you use a car to distribute goods to your customers, fine.
Otherwise, if a car is your secondary need, you shouldn’t consider taking a loan for something that depreciates.
A car’s value depreciates from the moment you leave the parking lot soon after making payments and being handed the keys.
If you were considering a move for peer to peer loans, the above reasons should help you make rational decisions that won’t make you have later regrets.
Over to you: what are some of the reasons that may force you to seek a P2P loan? Share with us in the comments.