How to avail Good Finance Loans For A Borrower
Good Finance was founded in 2006 as one of the original online peer-to-peer (P2P) lenders and is still a major provider of personal loans. If you are looking for personal credit for needs such as debt consolidation, it is wise to include at least one online lender in your search, and Prosper is a decent option.
What is Good Finance?
Good Finance is a site where borrowers and lenders meet. Good Finance’s original vision was “eBay for loans,” where individuals with money could lend to individuals who needed money.
Instead of borrowing from traditional banks and credit unions, you can borrow from a number of lenders. Prosper acts as a loan lender, but does not give you the money itself. Instead, the company matches potential borrowers with investors looking to finance loans. Prosper earns by charging fees for this service.
The loans from Good Finance are personal loans and can be used almost anything you want. You do not have to pledge to get approved. Instead, you will get approved based on your credit and income. You can repay the loan within three or five years.
How much does it cost?
Borrowing from Good Finance is often cheaper than using credit cards. It is a good option for high interest rate debt consolidation. This means that credit card promotion can beat Good Finance, for at least a year or so, so it’s always worth comparing rates.
To borrow money from Good Finance, you pay the interest rate as you would with any other loan, and you pay an origination fee, called a “closing fee.” Interest rates and fees are based on your credit score.
The better your credit, the less you will pay, and Prosper has a minimum credit score of 640.
Interest Rates: The annual percentage rate (APR) on Good Finance loans ranges from 5.99% APR to 35.99% APR. This rate includes fees, but most of that cost is your interest expense.
Generally, the interest rate is still lower than what you would pay with credit cards.
Fees: Good Finance charges a closing fee, which comes out of your loan. As a result, you will not receive the full amount you applied for, so do so when deciding how much to borrow.
The closing fee starts at 0.50 percent for borrowers with large loans and increases to 4.95 percent for lower credit scores. You pay extra if you miss payments. No penalty is provided so you can repay your debt as quickly as you want.
Some lenders find that they are better fortunate to be approved by that lender than they do with traditional lenders. Especially when it comes to big banks, getting a loan can be difficult if you have less than perfect credit. However, you still need to meet certain criteria on Good Finance.
Credit score: Prosper checks your credit score in Experian, and you need a score of at least 640. The higher your score, the more you pay for your credit. Good Finance stated that users with good credit are preferred, and the average credit score for approved borrowers is just over 700.
Debt-to-Income Ratio: Borrowers look at how much of your monthly income is available to pay off your loan by calculating your debt-to-income ratio.
Good Finance is looking for a number below 50% for new credit.
Income: You must have income, but Good Finance specifically states that retirees can borrow, so it may not necessarily be employment income.
In addition, your credit report must be free of recent bankruptcies and excessive investigations. If your credit report is “thin” because you have never borrowed, you will need to make a loan before applying with Good Finance. If you have previously borrowed Good Finance credit, you are unlikely to get approved.
The process of lending
To borrow money, visit Good Finance and submit your application. You will need to provide basic information about yourself, such as your address and social security number, and you will also need to provide information about your income.
Good Finance may require you to submit proof of income, which may mean sending a copy of your salary or tax returns.
Make sure you report your income exactly when you apply, as you may be required to provide the income documentation you provided on the application.
To receive funds, you will provide your bank account information so that Good Finance can send funds directly to your checking account. Make sure you know where to find your account and routing numbers.
The whole process, from the moment it is applied to seeing the funds in your account, can be done in three days, assuming that everything goes smoothly.
Is it safe?
Good Finance is a legitimate online lender that works with several million members. As long as you are in the right place of Good Finance and have a secure connection, it is safe to apply for a loan. In the meantime, data breaches can happen very occasionally, and Good Finance could be hacked, but the same goes for any financial institution.
Lending money is always risky, so make sure it makes sense to take on debt. Evaluate any alternatives that include how you will pay your debt over time and how much you will pay to borrow so that you can make the informed decision.