Benefits Of P2P Lending If You're A Single Mom
If you are a single mom, you're well aware that minor emergencies can lead to huge financial setbacks. Getting some fast cash can be a simple solution to prevent huge overdraft fees, utility shutoffs or possible vehicle repossession—which can cost hundreds of extra dollars on top of what you already owe. One option for financial resolve may be P2PL or Peer-to-Peer Lending. Here are just a few benefits to consider if you choose this type of lending option.
Fast Cash
When you're in a bind for cash as the primary caregiver to young kids, it's important to be able to make the deposit you need in your bank account to cover your debt. Using a peer-to-peer lending program allows you to enter your information online and easily be connected with a lender or lending company that is willing to loan you the money that you need. Many P2P lenders are investors who are looking to make a small return back on their money. You will have to pay a fee in order to get approved for the loan, but you'll have a designated time frame in which to pay it back.
No Credit Or Background Check
An added benefit to going through an online P2P lender as opposed to your local bank is they usually don't require a lengthy background check. You'll likely only have to provide:
- Your bank account and routing number
- Personal information such as phone and address
- Social security and driver's license number
- Your employer information
- Personal references
- Income verification, such as a the last 30 days of check stubs
If you've had credit issues in the past, a large debt-to-income ratio or a low FICO score, a P2P loan may be a good option for you to get the money you need.
Short Term Loan
With many traditional lenders, a personal loan requires in-depth income verification and oftentimes collateral to get approval. You may also have to put a small amount down to secure the loan. In addition, you'll be paying fees and interest throughout the life of the loan, which can really add up in the long run. With a peer-to-peer lending loan, you'll know exactly what fees you will be paying and you'll be paying them off within a shorter time period, such as 30 or 90 days. There will be no ongoing monthly bill coming in the mail each month. This is a fast way to get the cash and pay it off, so you can get back to paying your regular bills each month.
Less Paperwork And Documentation Proof
With a P2P loan, they do require some physical documentation and proof when it comes to identifying who you are. However, some finance companies that offer these types of short-term loans simply gather most of your information from an online application. The turnaround is generally quick and the money is deposited into your account within 24 hours if you're approved.
If your credit is less than perfect and you don't mind paying a little extra to get the cash you need quickly, contact a P2P lending provider like Crossroads Investment Lending today to apply.
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