You can apply for more than one P2P loans if you feel that you can afford to pay back. You must have a good credit score in order to take out more than one P2P loans. Most P2P lender will require a credit score of at least 640 or more. Some P2P lending networks will approve loans from people with bad credit score as low as 580.
Opening multiple P2P loans gives you opportunity to effectively build up your credit score. If you currently have a bad credit score or have filed for bankruptcy, it is recommended that you don’t apply for the P2P loan right now until there is a significant improvement in your credit history. You must be have proof to show that you can manage your finance responsibly.
It is possible to apply and get approved for more than one peer to peer loans from a single lender but there is a maximum amount that you cannot exceed. For example, you are not allowed to borrow more than $20,000 from a single lender.
Only borrowers that are aged at least 18 years old will be approved for loans. Both permanent resident and people who are visa holder for long term will be accepted. In addition, you must show your social security number and have a working bank account. The monthly payment for the P2P loan will be automatically deducted from the balance in your bank account.
It is advised that you don’t request for a loan that is more than your ability to pay it back. Paying back the loan on time is necessary if you want to avoid getting charged with late fees. Just like bank loans, you must keep up in paying back your loan otherwise the lender has the right to take actions against you.
You can considering covering your P2P loan with insurance so that you will have money to pay back the loan in case anything happen and you cannot work. You can always contact the lender and discuss for a lower range if you have a problem in repaying it.
P2P lending is only a short term solution and you must never rely on it to gt money for your temporary expenses. To solve this problem, you must control your spending and budget your expenses according to how much you earn. Just like bank loans, borrowers that can demonstrate they have good credit score will get lower rate and those with bad credit score will be charged with higher interest rate.
There are serious consequences if you fail to pay back the loan as you are supposed to. Missing a payment can seriously affect your credit score and it can also cause problems of approval if you want to apply for additional loans from the P2P lending network.