Best Peer-to-Peer Lenders for Bad Credit of June 2024

ElitePersonalFinance
Last Update: September 25, 2023 Loan Reviews Loans

While traditional lenders turn consumer deposits into loans, peer-to-peer (P2P) lenders use capital from investors. The P2P business model allows individuals and institutions to tailor their risk tolerances to borrowers’ credit scores, and the dynamic increases your chances of obtaining a loan. For example, borrowers with bad credit often incur higher APRs. And this happens because the lower your credit score, the higher your perceived probability of default. However, since some P2P investors have higher risk tolerances than direct lenders, they’re willing to extend bad credit financing to earn a higher rate of return. As a result, P2P lenders often provide funding when others won’t.

There are only a few bad credit P2P lenders in the marketplace, so your choices are slim. However, our bad credit personal loan guide reviews more than 20 lenders with 35.99% or less APRs. Also, some don’t charge loan origination fees. Furthermore, we also reviewed 25 alternative lenders that offer better products than payday loans. So don’t settle for a 400% APR if you have poor credit.

Our marketplace also lists dozens of products for borrowers with bad credit. Moreover, applying does not require a commitment and won’t impact your credit score. As a result, it’s prudent to shop around, and doing so increases your chances of landing the best deal.