 TITLE: What is Peer-to-Peer Lending? CONTENT: How Does Peer-to-Peer Lending Differ From Traditional Loans?\n------------------------------------------------------------\nThe main appeal for P2P borrowers is that they'll generally find lower interest rates than are typically available through traditional lenders like banks or credit unions. But P2P lenders offer borrowers other advantages as well:\nThe P2P loan application processes typically take only takes a few minutes, which makes it easy to shop around for the best deal.\nThat shopping process is also gentler on your credit scores than applying for traditional loans, because P2P preapproval screenings, which generate offers including loan amount and interest rates, use soft inquiries to check your credit report. A soft inquiry, which also happens when you check your credit score yourself, does not affect your credit score. By contrast, a hard inquiry is made when you apply for traditional loans and typically causes a small reduction in credit scores.\nIf you accept a P2P loan offer, the lender will likely make a hard inquiry on your credit report before you get final approval. But up to that point, you can compare offers from P2P lenders to your heart's content without any effect on your credit report—something that's not possible with more traditional loans. END