 TITLE: What is Peer-to-Peer Lending? CONTENT: How to Get a Peer-to-Peer Loan\n------------------------------\nGetting a peer-to-peer loan is a two-stage process. First, based on your credit score and submission of basic background info—name, address, date of birth and income—the lender determines how much it's willing to lend you, and at what interest rate. (It's possible, of course, that they'll decide against making any offer; if that happens, they'll explain why.)\nIn the course of reviewing your options among the growing number of P2P platforms, here are a few things to consider:\n*   **Read the fine print.** Look on the bottom of each provider's homepage for an overview of the loan amounts they offer and the rates and fees they charge.\n*   **Make sure each lender operates in your state.** Not all P2P lenders do business in every state; and some have lending restrictions and procedures that apply on a state-by-state basis. You'll find that information in the homepage fine print.\n*   **Check your FICO® Score☉** **and review your credit reports.** Look out for any major negative entries. Accounts in collection and recent late payments could hurt your approval chances, even if you meet credit score requirements.\n*   **Beware of upsells.** If you qualify for a larger loan amount than the one you request, some P2P sites will encourage you to consider borrowing even more. There's nothing wrong with increasing your loan amount if you can afford it, but keep in mind that even low interest loans can be costly over time.\nOnce you choose a lender and accept its offer, the lender typically does a more detailed credit check (including a potential hard inquiry). The lender also may ask you to verify your income and to provide additional background information. In most cases, you can submit the necessary information electronically.\nThe site may take several days to finalize its lending decision. If you get final approval, you'll set up a payment process—most P2P lenders prefer automatic payments from a checking account. The funds can appear in your bank account within a few days.  \nDo Peer-to-Peer Loans Show Up on a Credit Report?\n-------------------------------------------------\nGenerally speaking, peer-to-peer lenders report payment information to credit bureaus, just like traditional creditors do. That means timely payments on a P2P loan will tend to improve your credit score over time, and late or missed payments will hurt your credit score.\nP2P lenders can be quicker than their traditional counterparts to submit overdue payments to collections agencies. While most traditional lenders wait at least 90 days before charging off unpaid accounts and selling them to third-party collection agencies, some P2P lenders initiate third-party collections after as little as 30 days of delinquency. Late payments and collections entries on your credit report have significant negative impacts on your credit score, as lenders view them as indications of poor credit management.\nPeer-to-peer lending outlets make it extremely easy to shop for loan offers, and qualifying borrowers can expect interest rates and fees that compare favorably with those of traditional lenders. END