Online Private Loans: A Discreet Alternative

People with bad credit don’t always have many options when they need money for an unexpected expense. Generally, those with good credit ratings will simply apply to their local bank for an unsecured personal loan and will usually get favorable terms and reasonable monthly payments. However, this is not the case for borrowers with bad credit. These people often need to take advantage of the use of private loan options. Therefore, there is a need for additional services designed specifically for when, despite bad credit, a fast personal loan is needed.

private loans

Strictly speaking, a private loan is any loan offered by an individual to another individual (also called a peer-to-peer loan). Basically, instead of using a traditional financial institution to fund your personal loan, you can go to a friend, family member or co-worker to get the money. If you have a good relationship with these people and you know they have the money you need, this is a great option.

However, many people with bad credit don’t know others with this flexibility or are embarrassed to ask for help in the first place. These people still have options, however, when it comes to private loans.

Discretion is key

If you need money for an unexpected expense, maybe a car repair or a traffic ticket, it can be hard to find the cash right away. If you have bad credit, you also have to worry about your ability to acquire the cash in the first place. Maybe you don’t have credit cards, or the ones you do have already have high balances. This is when you need to find someone who will offer you the money without much hassle. Private loans represent such a case.

People with extra cash and looking for a non-traditional investment opportunity often flock online through lending agencies. These agencies take the investor’s money and offer it as a private personal loan to those who need quick cash without the aggravation of stringent credit standards and bank denials. The interest or fee you pay on these loans is then split between the initial investor and the lending agency. You can get money with no hassle and these investors can earn some extra money.

Online private loan statistics

Since the degree of risk will vary from borrower to borrower, the terms of these private loans will also vary. In general, you can borrow from $100 to $5,000 at different interest rates and fees. Depending on the information you provide, which will include proof of identity and income, interest rates on these loans can be as low as 6% or as high as 35%. Therefore, it is of the utmost importance that you get quotes and compare prices before taking money on a private loan. Be absolutely certain that you have the means to repay the lender and the investor from whom you took the loan.

A good solution

In the event that you need money and have no other means of obtaining it, the use of online private loans provides bad credit borrowers with a good solution to their problems. Although the terms of these loans can be quite strict and the interest rates high due to your poor credit and risk, if you have no other choice, they are a viable tool to help you in your time of need.