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Many financial experts and new millionaires have stated that we are currently in the middle of the greatest wealth transfer in American history. With that being said as technology grows there is no need for you to miss out. There are new ways to generate income outside of your job honestly the options are limitless. Peer-to-Peer lending investment is another great way to make your money work for you.
Peer-to-Peer Lending is also known as P2P it functions as an alternative loan. This loan allows people would are not able to qualify for a traditional loan borrow from investors, as opposed to working with a traditional lender. Borrowers generally request money through a marketplace and investors will use the marketplace to fund the loans.
What is the purpose of Peer-to-Peer lending? Remove the financial institution as the middleman. Borrowers can then get assistance from other people or businesses to fund their needs. The qualifications for peer-to-peer lending are: having a short credit history or no credit history, hold a Fair Credit Score of 580 to 669, Do not qualify for a personal loan from traditional financial institutions, have a strong credit history, shop for lower rates than are available through traditional lenders, prefer more human, community-based approach to financing.
Perks and Features of Peer-to-Peer Lending
I. Peer-to-Peer loans eliminate the financial institution as the middleman.
II. Pre-qualification doesn’t hurt your credit score.
III. Lowe credit threshold is needed to qualify.
IV. Helps build credit.
How To Make Money As A Peer-to-Peer Loan Investor
I. Find a marketplace, sign up as a lender and transfer money into your accont.
II. Fill out a questionnaire that will ask how much you will plan on investing, your desired interest rate, and how long you desire to lend.
Peer-to-peer lending return on investments range from 4% to 9% annually. However, the investor’s portfolio should be diversified. Although it is important to understand that there risk that can occur with peer-to-peer lending. Due to the fact many borrowers do not have credit history they are more likely to default on the loans. If the borrow defaults then the investor can lose their entire investment. Despite this risk the rewards from peer-to-peer lending investment are lucrative.
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Wealth Always Reigns Supreme