There are online peer to peer lending sites such as Prosper.com and Lendingclub.com where you can borrow cash relatively quickly, if you qualify. These sites create a win-win situation for borrowers and lenders alike. The sites are set up so that the borrower pays an interest rate based upon his credit rating and creditworthiness. Borrowers can apply for loans that range from $1,000 to $25,000. The funds borrowed can be used for things such as debt consolidation, auto purchases, and personal loans. 

These peer to peer lending sites each have their own criteria that borrowers must meet to apply for a loan. For example, Prosper.com has a requirement that borrowers have a minimum credit score of 640. Currently Lendingclub.com requires a borrower to have a FICO score of at least 660 and a debt-to-income ratio (excluding mortgage) below 25%. Both sites have other borrower requirements that will need to be met before qualifying to participate and obtain a loan.

Interest rates vary depending upon your credit history. However, the rates are often less than those you would obtain from traditional lenders. And, in many cases, interest rates will be far less than those you might get from a payday loan or from a cash advance on your credit card. In addition to the interest you pay, you will have to pay a fee to the website from which you obtain the loan. If you are late with a payment then you will be required to pay a late fee. On the other hand, you are able to prepay the loans at anytime without penalty.

There are other things that you will need to check out at each site. For example, if you reside in certain states you may not be eligible to borrow from these sites so you’ll have to look at each site to determine whether your state has any lending restrictions.

Here’s Hoping Some Quick Cash Comes Your Way!

However, you have to make sure to read the fine print so that you know what it is going to cost you.  Most credit card companies charge a processing fee equal to about 3% of the amount you borrow.  Some companies cap the fee but others have no limit so you should proceed with caution.  For example, if you were to take a cash advance of $4,000, your fee could be as much as $120.  You should be aware that you will likely incur a higher interest rate with cash advances than with regular purchases.  In addition, there is generally no grace period when you take out a cash advance.  This means that the interest will begin to accrue as soon as you get the cash. 

Another thing that you should realize before you grab that quick cash advance is that if you take out too much and exceed your cash advance limit, you will likely be charged additional fees as well as even higher interest rates.

It’s a good idea to contact your credit card issuer before you use a cash advance check to obtain quick cash.  You should negotiate and see if you can get a better interest rate.  It’s also possible to negotiate a lower transaction fee or to get the fee waived entirely. 

Remember that there is a difference between a balance transfer and a cash advance.  Cash advances tend to incur expensive transaction and processing fees and can have very high interest rates.  So, in the long run, you may be better off just charging the expense on your card rather than taking a cash advance to pay for it.

Here’s Hoping Some Quick Cash Comes Your Way!