Consolidating debt buying house
This fee is different for everybody, but for most loans the fee is 5% of the loan amount.
80% of peer to peer loans pay this 5 percent closing fee, though the best 20% of borrowers pay a smaller fee: between 1-4%.
For the Lending Club loan, I would pay 6 in interest over three years. This is a savings of for the exact same loan, a difference that would be even more dramatic if the loan were larger (eg: for a ,000 loan I would save 0! It is important to point out how my experience between the two platforms may be different than yours (see Peer Lender; he also got consistently better rates @ Lending Club). When I applied for a Lending Club loan, I received my money in two days.
I applied on Monday and had money in my bank account on Wednesday.
If you live in Maine, North Dakota, or Pennsylvania then you cannot get a loan through Prosper, but you get a loan through Lending Club.
If you have excellent credit, Prosper also offers a fee as low as 0.5% while Lending Club is higher at 1%. Even this tiny 0.5% difference can mean hundreds of dollars in savings for big loans.When funded (and loans currently get funded), the money is transferred to your bank account.You then pay it back with interest over the next three years (or five years).You should consider this fee when you apply for a loan, since 5% of your loan will be lost to to it.For example, say you needed ,000 to pay off credit card debt.
Prosper, on the other hand, deposited cash in my account in three days.