When you apply for a P2P loan through companies like Lending Club and Prosper, you face the requirements of the lending platforms and the individual investors. Even though you’ve qualified for a P2P loan, it doesn’t mean that it will get funded.
Your credit profile, employment information, the expected amount of your monthly payment and living situation will be displayed to potential investors, who will review this information to see if they’ll want to fund your loan.
P2P lending platforms may not require you to verify your income or employment status. There is always the possibility that borrowers give inaccurate information to deceive investors. By verifying this information, you’ll appear less risky to investors. (A symbol appears in your listing to show that you’ve taken the time to verify this data.)
It’s imperative to ask for the amount that you need. Investors will be able to see how much debt you have. Asking for more than that amount will make it appear as if you’re trying to cheat the system.
Since borrowers also get to describe the purpose of their loans, it is important to be as detailed and honest in this description. As investors browse through loan listings, they may give special attention to those who take the effort to provide a complete description about their loans. It also helps to share your goals, which shows that you’re aiming for a better financial future.
In some cases, investors may ask additional questions to get a better idea of your financial situation. Investors might ask you to list the balances on every single credit card or loan. They might ask which debts you plan to consolidate. And, they’ll want to know typical monthly expenses to see if you can handle the monthly loan payments.
Prompt, detailed and grammatically-correct responses will improve your chances of having your loan funded.
By providing all this extra information, you’re likely to get a fully-funded P2P loan much quicker!