Can You Have More Than One Peer to Peer Loan Open At a Time

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.


Comments are closed.

  • FAQ for borrowers searching for personal loans in Texas

    How do I decide if a personal loan is right for me?

    A personal loan is a significant commitment. Weigh the benefits to decide whether paying interest for the privilege of borrowing money in advance is crucial. Understanding your responsibilities in addition to the reasons for taking out the loan is critical to obligating your future income to make the payments.

    How does a personal loan affect my credit score?

    Hard inquiries performed by creditors are going to knock a few points off your credit score. You can increase your credit score by making timely payments and never missing a single one. Paying late can affect your credit score and block access to future loans. 

    Do personal loans need collateral?

    Personal loans are generally approved based on creditworthiness. Typically designated as “good faith” loans, the lender won’t need collateral to guarantee that you’ll repay what you’ve borrowed. Although riskier for loan issuers, unsecured loans can cripple your ability to access further credit if you fail to repay to completion. 

    Can I change my payment due date?

    Your payment due date will be set when your short-term loan is approved and will be the same date during the month. You won’t be able to change this pre-determined date. 

    What are the different types of short-term financing?

    Short-term loans, trade credit, overdrafts and credit cards are common examples of short-term financing. Typically, the repayment period is as short as a few weeks up to five years in length. Depending on the type of financing (personal loan, unsecured loan, installment loan) and lenders terms, you will generally find many loans are between six to thirty-six months for repayment.