Do you need money, but you do not know anyone to ask?
Or maybe you exhausted all of your personal connections and no longer want to ask?
Well, whatever your reasoning may be, you may need to borrow money from strangers online for one reason or another.
If this sounds like you, there are options available, but like applying for a loan, nothing is guaranteed. In many of these cases, you will have to sell yourself as to why you need the money as well as fill out a profile so these strangers can assess your financial responsibility. If you have a lower-than-average credit score, then you should be prepared to pay a higher interest rate than someone who doesn’t. Regardless, it is possible to borrow money from strangers, even with a low credit score, but it may take a longer time getting the money.
After all, if these people want their money back, do you think they would want to give money to someone who has a sub-par credit score? Probably not.
In this post, regardless of your situation, I want to talk about the many ways you can potentially borrow money from strangers, most of which deal with using very reputable websites. They all work in different ways, but I will try my best to explain how it works in each description.
How to Borrow Money from Strangers
Quite possibly the largest and most reputable website on this list, Prosper allows you to borrow from strangers, up to more than $40,000+ at a time. The company was founded in 2005 and was considered as the first peer-to-peer lending website. To date, they have originated more than $13 billion in loans.
To request money, Prosper will first ask you to answer a few questions to determine your loan rate. This will work no differently than a credit application, however, they note that checking your rate will not affect your credit score as only a “soft pull” is used. You can borrow up to $40,000 with a fixed-rate or a fixed-term up to five years.
After you fill out your profile and are happy with the rate given, you can then choose a term that works best for you, which will all depend on your credit history. Once your loan goes live, strangers are essentially adding money to your account as they will get a cut of the interest rate you’re paying, making it a win-win for both parties.
If you do use Prosper, you can get your funds within five days, but this will depend on your risk as some investors may not want to give you money if you’re considered high risk. To learn more about this opportunity, be sure to follow the official link below to check out the help center as to how it all works.
- Website: Prosper
Lending Club is similar to that of Prosper, only that it was founded two years later in 2007. It’s a copycat, per se, but it’s still a nice option.
If you want to borrow money from strangers at Lending Club, it can be done in a variety of ways, from personal loans to refinancing your car or paying off your high medical bills. You use it for just about anything, but Lending Club does break down your options into four types of solutions: personal loans, business loans, auto refinancing, and patient solutions.
Again, like Prosper, you will have to fill out a profile and only hope these strangers want to give you money. As long as your risk isn’t deemed to risky, you shouldn’t have a problem getting your funds. With Lending Club, you can borrow up to $40,000 from strangers.
- Website: Lending Club
Peerform is a lesser-known name in the peer-to-peer lending industry, but it’s yet another option if you want to borrow money from strangers. It doesn’t hurt to apply to as many of these as possible to see which one offers the best rate.
Founded in 2010 by a few Wall Street Executives, the website was founded on the premises that they wanted to provide borrowers with a positive experience when obtaining loans that were clear, fast and fair.
If you want to borrow money, you can ask for up to $25,000 with rates dependent upon your credit profile. If you do choose this option, you will have to pay an origination fee up to 5%, but after this, there are no more hidden fees or prepayment penalties.
- Website: Peerform
Right on the main website, Upstart asks you what you would like to pay off today. And, clicking on the drop-down list, it could be anything from credit card debt to helping out a family member. There appeared to be no restrictions.
Founded by ex-Google employees, Upstart is unique in comparison to the other options here as they use artificial intelligence to asses your risk rather than just focus on your FICO score. In turn, this has led to lower loss rates.
Out of all the options, Upstart had one of the highest borrowing options, allowing qualified applicants the option to borrow up to $50,000. All loans need to be paid off within five years, and the rates, dependent upon your credit profile, could range anywhere from four to as much as 36%.
Upstart states that you can check your rate in as little as five minutes, and in some cases, you could have your money as fast as tomorrow.
- Website: Upstart
The very popular r/Borrow subreddit was created to help Redditors who are temporarily in need of money and are able to pay it back in a short period. Looking at the most recent posts, it looked like most people were asking for less than $300. You could ask for more, but I’m not sure how high your success rate would be.
Even if you’re not a Reddit member just yet, you can at least view the subreddit for now and learn how it works as it may be a great option if you need to borrow less than $500. It may look confusing at first, but I promise you that people do lend money here.
To request a loan, they do ask that your account is older than 90 days and you have more than 1,000+ karma. If you’re not active on Reddit, you can at least start doing so now to gain karma, but it doesn’t guarantee you a loan. I only mention it as there could be a chance you already have a Reddit account, so this could be an option to consider.
- Website: Reddit r/Borrow
Do you need the money for a business venture? Do you like the idea of a 0% interest rate loan?
If so, you may want to check out Kiva, a non-profit that has raised over $1 billion.
Similar to the peer-to-peer lending platforms I mentioned prior, Kiva works in a similar way, only that your loan will have no interest. Strangers who are investing money on this platform are doing so just to do good for the world.
If you’d like to borrow, you can get up to $10,000, but you will have to pre-qualify to go live. You will also have to tell a good story as to why you need your money. Seeing it is a 0% interest rate platform, it could be much harder in comparison to the others as people are doing it as a good gesture.
- Website: Kiva
Funding Circle is yet another small business peer-to-peer platform, only that you will have to pay interest rates on any money borrowed. While this can be looked at as a bad thing, your chances of getting money from strangers on this website are much greater than that of Kiva.
As a borrower, you must borrow $25,000 at a minimum, but loans can be as much as $500,000 with terms lasting up to five years. Rates are said to start at 4.99%, all based on your credit profile.
Remember, this is a small business option, so you won’t be able to use the funds for any personal reasons. It’s another nice option if you need to borrow a ton of money for a business of sorts.
- Website: Funding Circle
Today, the internet has made it easier than ever to find strangers who are willing to give you money.
And, as long as you’re not considered a risk to these investors, you will find that you can often get your loan funded in as little as 48 hours.
If you need money right now and want to attempt your luck with strangers, then I encourage you to at least try a few of the very reputable options above. In doing so, I can only hope you get the money you need!
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