How To Get A Loan With Crowd Sourced Funding
With the financial crisis that's hit this country in the past 6 months it has been much more difficult to get an direct loan from a bank
. Most lending institutions have cut back the amount of money they've been lending to customers who don't have an excellent credit score. We have all needed a quick bit of money from time to time and it is no surprise that borrowing the money is one of the most common ways to get money quickly.
We are used to turning to banks for all our loan needs today, but the act of borrowing money has existed long before there were banks. Before official lending institutions existed there were rich nobles who would lend out money to people who needed it. When finances were first created you'd have to borrow money from several wealthy people if you needed a large sum of money for any reason. The act of lending money a straight-forward process, but it was complicated to administer loans to many different people. In the past many people sometimes lent money to a poor individual. At some point, these rich people put their money together and made a banking institution which would handle the details of lending and collecting money on its own.
There is now a method of borrowing cash no longer involves a lending institution at all. With the advent of the Internet there's been a change in the way people are able to borrow money and lend it to others. Most of these social loan sites are web-based because it helps lots of lenders give to lots of borrowers. The most recent way of borrowing money more closely resembles how loans were handled in the past: social lending between two parties.
If you need to borrow $1000 for a home improvement then you might really end with one big loan that's funded by a dozen different lenders! This new way of lending money is called "peer-to-peer" lending or crowd sourced funding. Peer-to-Peer lending lets multiple people lend their money to a solitary individuals or lots of different people. So you could borrow cash for a big home improvement from a crowd sourced lender and really be getting money from dozens of different people. In a crowd sourced lending arrangement a single party may end up borrowing cash from dozens of different lenders. Most social network loans don't depend on your home's current value so these financial tools are perfect if you are wondering
what you can do if your home loan is underwater.
Peer-to-peer borrowing for home remodeling projects is often a good way to borrow cash. Clearly, this type of loan isn't good for everyone.
by: Tom Millner
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