Best Peer to Peer Lending Sites

The Best Peer to peer lending sites help people get loans from their peers as opposed to going with traditional bank loans.  The reasons why a person might turn to peer-to-peer lending sites basically fall into two categories: A they can get a better rate or terms or they cannot get a loan from a traditional bank.  Either way, the best peer-to-peer lending sites offer a valuable alternative.  On this page we will go over how to choose among P2P lending websites, and then how to make your pitch.  We will also discuss the possible terms of your peer-to-peer loans and how to negotiate that part.  We will use some peer-to-peer lending websites as examples you can check out, but we are not an affiliate site so we are not promoting any product or website and have no stake in what you choose.

Choosing The Best Peer to Peer Lending Sites

There are a wide variety of potential best peer-to-peer lending websites out there, and narrowing things down can be challenging.  That said, there are three main qualifiers you might want to use to narrow your initial choices, including:

1. Look for a website that has been a round for a while and has successfully offered peer-to-peer loans for some time.  See if there are similar pitches to yours, and whether people seem to be getting funded.  A peer-to-peer lending site should be well-established and able to generate the volume of successful business to keep people coming back.

2. Notice the quality of the website and the seeming degree of customer service and attention.  Whether you are an investors or looking for a peer-to-peer loans yourself, you will find that the best P2P lending sites offer responsiveness and attention that will help you get what you need.  Peer to peer loans should come with exceptional customer service.

3. Look to independent forums for advice and guidance about the best peer-to-peer lending websites out there.  Look out for posters who are using affiliate links in order to get paid when someone clicks, but otherwise forums can be a great way to get advice from others about potential peer-to-peer lending websites that they like.

4. Watch a few of the best peer-to-peer lending websites for a while.  See whether there seems to be a lot of action at each one.  Does there seem to be a lot of traffic and a lot of projects being funded, or does the site, despite looking good, seem to fail to attract visitors.  Notice not just whether project are being funded but whether they are being funded 100%

Best Peer to Peer Lending Sites List

We try to remain fully unbiased and independent here, but at the same time we know that our visitors would like practical information.  If we completely left out the names of the best peer-to-peer lending websites on this page we assume that some of you would be disappointed given the page title.  Therefore we do offer the information below about P2P lending sites, but with two caveats.  First, we are not an affiliate of any of them, and the links you will see below are purely one way – we are not earning anything if you click.  Second, we want to be very clear that these may be some of the better known and best peer-to-peer lending sites but this is not a comprehensive listing by any means.  Here are some of the best peer-to-peer lending sites – those websites that you may want to check out first in your quest for peer-to-peer loans:

Prosper was one of the first peer-to-peer lending websites and it continues to do well.  Prosper has an interesting feature for investors that is an automated option that can be beneficial for those looking for an investment and the investors as well.  Proper has tended to receive high ratings from those sites that give reviews. You might want to check out the blog at Prosper which has very helpful information and advice whether you are a potential investor or looking for peer-to-peer loans.  Prosper was first to the market and has stayed strong, with more than 2 million members and over $1,000,000,000 in loans that have been funded.  Prosper does a nice job making sure that the investor is rewarded both financially and socially – emphasizing the good that they are doing in a person to person way by investing in other people.  With a minimum loan of $2,000 and a maximum of  $35,000, and a minimum for investors of $25 per listing, Prosper has a lot of opportunities on both sides of the equation.  You can research everything from borrowers credit scores and histories to personal loan descriptions and  endorsements from friends.   All of these features make Prosper one of the best peer-to-peer lending sites

Lending Club is probably the largest peer-to-peer lending website out there are for good reason.  Many people have found success with this website which is easy to use and has excellent traffic.  If you want to start with the biggest of all your choices with the hope that volume is key to getting your promising pitch funded, this is a great place to start.  The blog at the Lending Club is also worth looking at and searching.  There is a ton of helpful information there and many wise investors willing to share their experience.  Lending Club opened in 2007 and has been one of the top interfaces since then with an efficient and customer-friendly interface.  They have very successfully leveraged technology to make the user experience – whether you are looking for a loan or are a potential investor – smooth and easy.  As a borrower you can get a fast response to your request for a loan, and if you are an investor you can quickly and easily choose among requests and build a portfolio made up of hundreds or even thousands of requests.  Reinvesting proceeds from a loan investment is easy, and of course you can also withdraw your money with the interest earned after the term is up.  The choice between Lending Club and Prosper often comes down to the fit between the investor and the slightly different features they offer, but they are both easily among the best peer-to-peer lending sites available.

Other potential best peer to peer lending sites

While these two sites are probably the best known and most established person to person lending sites out there, there are certainly others as well.  You may find that there is another one that fits with your style or tends to have the types of requests you want to fund if you are an investor, or the types of requests like yours get funded if you are looking for a loan.  Make sure you do your homework and choose a site that has been around long enough to clearly give expected returns and results.  Business Insider also has an article dedicated to choosing the best P2P Lending sites.

Best Peer to peer lending sites for investors

If you have come to this page because you are a potential investor looking for the best peer-to-peer lending sites, we have some specific advice (hint to those looking for peer-to-peer loans, it still may be worth reading this section as well!).  You will have some choices with your person to person loans investment, and here is our guidance:

1. Decide first of all whether you are looking to fund one or only a handful of peer-to-peer loans, or whether you are looking for an aggregation site that will pull together a lot of requests so that you can spread the risk.  The former may seem more personal and may give you a chance to fund projects or purposes that are close to your own personal mission, while the latter allows for less risk and a more guaranteed return.

2. The decide your risk level.  Most peer-to-peer lending websites structure things so you can choose the risk level that you are willing to take.  Take on more risk and you can potentially get a higher return, but lower your risk profile if you want a higher guarantee of a return.  In this process make sure you understand how your chosen peer-to-peer lending websites are measuring risk – are they using credit score, other aspects of the person’s credit history, etc.

3. Next decide how you are going to invest – will you put smaller amounts of money across a variety of risk levels and even peer-to-peer lending websites, or will you just choose the best site and best level and put all your money there?  Maybe you’ll fund one particular loan request with some of your investment, and a heavily pooled request with the rest.

4. Finally, make your initial investment and learn the ways you can keep track of how it is doing – make sure you check back to your chosen site and if possible sign up for automated statements.  Maybe you have decided to invest only a portion of what you will eventually put in, so you’ll need to decide when you are satisfied and ready to reinvest.

Best Peer to Peer Lending Sites Summary

There have been many P2P sites that have recently opened, and over time some may more fully enter the market while others may not make it.  You may want to take a chance on a newer website where your pitch may be more likely to get noticed, but you also take the chance that the site may not last.  We offer the listing of the best peer-to-peer lending websites above that includes more established choices that will likely last.  We wish you the best of luck whether you are an investor or looking into peer-to-peer loans for your own purposes.

Please remember to check out our other information, including “is peer to peer lending safe?” and peer to peer lending strategy.

We hope that this information about the best peer-to-peer lending sites proves helpful!