So you’re looking to get a home line of credit? Some of those repairs have been put off for way too long and you don’t have even a couple of thousand of dollars to spend on those moderately priced repairs.
You can do what most people do and head to your local bank or credit union but there may be another option. A peer to peer line of credit may be an even better way to fund that home line of credit.
Peer to peer lending has been around for a long time. Before banks took over as the go-to lending institutions, peer to peer lending become less popular. Now that credit is tighter and even those with an exceptional credit rating find themselves having difficulty obtaining credit, peer to peer lending has again became a popular option.
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How do you get your home line of credit in this way? First, check out websites like Prosper.com. The idea is simple. A person who needs a loan goes to a place like prosper.com and places a request for funding. In this case, you would list home repairs. You then information that allows your credit to be checked and verified. You are given a credit ranking.
Once you do all of this, people will bid on your project. Obviously, the better your credit rating, the lower your interest rate. That is all there is to it. After that, you are responsible for paying back the loan on a daily scale with monthly payments similar to a traditional bank loan.
You can also be the lender. Maybe you want to help somebody get their home line of credit by lending them money. This can be done on sites like prosper.com as well. By signing up, you can lend as little as $25 towards a person’s request and make more than 25% interest on your money. Loans to those with higher credit scores many only bring in 10% but if you have a high risk tolerance, then this may be for you.
It should also be noted that this program is not available to people in all states. For example, I live in Ohio where it isn’t available but most states allow people to use this service.
If you need a home line of credit and you prefer not to go through a traditional bank, peer to peer lending at places like prosper.com may be something to look at.