I recently came across a new lending source. 

It's an alternative way to get a loan, than your usual bank.

It's called peer to peer lending and in a nutshell.  

Here's how it works.

There a lending sites popping up where people who havemoney to invest. loan out money to people who need it.  Where as typically there is one source for the entire loan.  This new concept has multiple people loaning money until it adds up to what is being requsted.

So basically, if you needed a loan for $10,000, there could be 200 people collectively loaning you the money.

No, you don't have to write a check to all 200 people.  You use the peer lending site, who then distributes your payment to the appropriate individuals.

You're probably asking "why would someone loan me money?".

Because the people who loan the money, get interest on the money they lend.  The crazy thing is, these lenders want your business (if you have good credit).

SO what typically ends up happening?  Well, all the competition to earn interest off your loan drives the interest rate down.  One person may bid at 10% interest and the next at 7%. 

Why?  Because even at 7%, it's still alot better than what they would receive if that money was sitting in their bank account.

The downside is that the lower your credit score or greater risk you are, you'll be paying a higher interest rate.

So what kind can you use the money for?

• Student Loans
• Home Loans
• Emergency Loans

plus a lot more.

 You'll have to check it out and see for yourself.

 The name of the site is called www.prosper.com

If I find more of these sites, I'll post them here also.

russ

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