: What are advantages & disadvantages of using a Peer-to-Peer lending site or network? If I was looking to consolidate some credit card debt and wanted to use a peer to peer lending service, what things do I need to look out

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Main advantages

you are closer to your lenders, not some impersonal bank
you are more likely to get a favorable rate
more flexible terms

Main disadvantages

You are closer to your lenders(see advantages), it is not as bad as
borrowing money from your friends or relatives, but the personal
factor can come into play(even though p2p lending sites serve as a
bit of buffer).
You need to be aware on how the lending sites get paid and how much.
Obviously you should not have to pay anything in advance to originate
a loan(those are generally scams).
Finally a very subjective opinion, but I think in terms of financial
returns p2p lending is not that great for lenders, but good for
borrowers, precisely, because individual lenders are not that great
at determining credit risk of borrowers.

In any case it should not concern you too much, as long as you can get your loan.

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Prosper and Lending-Club are the two main sites for this. I was on Prosper for a while.
To get a credit card consolidation at a good rate, you need a good credit score and you need a good narrative. You will be putting together what is basically a presentation to strangers on why you need the loan and that you are perfectly capable of paying it back. The second part is important. You will want to state your income and your job stability to show that you will be able to pay this loan off over the 3 year life of it.