Best person-to-person loans (P2P) in the United States

Best person-to-person loans (P2P) in the United States
Person-to-person loans (also called peer-to-peer loans, peer-to-peer or P2P loans) might be beneficial if you cannot or do not want to borrow money from a bank, credit union, or conventional lender. Definitely worth looking into.
In search of the best person-to-person (P2P) loans in the United States? Excellent! We have made a selection that will help you learn more about the six main platforms in the nation.

What are P2P loans?

Mainly, P2Ps operate in a manner that is distinct from other credit options available on the market. In this case, you would not be receiving the money from a financial institution, but from an individual or group of individuals who use the loan as an investment.

The return on peer-to-peer loans is much higher than that on certificates of deposit and high-yield savings accounts offered by banks, so it is a win-win situation for everyone.

Peer-to-peer lending is nothing new. This type of lending has existed since 2005. This sector has grown significantly and become more competitive with the expansion of the Internet and growth of fintech companies.

Despite the similarity of the platforms, there are differences in terms of eligibility, loan rates, approved amounts, and target customers.

In order to qualify for these types of loans, applicants must meet certain requirements. The peer-to-peer lending websites are ideal for determining eligibility since they act as intermediaries.

The websites provide investors with interested parties as well as rate and contract information. In addition, they ensure that the transaction goes smoothly.

Lender Advantage Approx APR Approx amount Payment deadline Recommended score
Peerform The best rates 5.99% – 29.99% $4,000 – $25,000 3-5 years old 600+
LendingClub Best for low credit scores 10.68% – 35.89% $1,000 – $40,000 36-60 months 600+
Upstart Best for people with no credit 8.13% – 35.99% $1,000 – $50,000 3-5 years old 620+
Prosper Best for people with good credit 7.95% – 35.99% $2,000 – $40,000 3-5 years old 640+
Funding Circle The best for SMEs 11.29% – 30.12% $25,000 – $500,000 From 6 months to 5 years 660+
Pay-off The best for fair credit 5.99% – 24.99% $5,000 – $40,000 24-60 months 640+

Peerform: The best person-to-person loan for its rates

Peerform was founded by a group of Wall Street executives in 2010. With Peerform, applicants with good credit scores can access loans starting at 5.99%. But what about the downside? Maximum loan amounts are as low as $25,000.

Pros of Peerform:

  • Competitive interest rates for borrowers with excellent credit.
  • There are no penalties for making early payments.

Cons of Peerform:

  • The loan amounts are not that high.
  • Five US states (Connecticut, North Dakota, Vermont, West Virginia, and Wyoming) do not offer this service.

More information about Peerform:

Minimum and maximum loan amounts range from $4,000 to $25,000 with an APR of 5.99% to 29.99%.


Application fees range from 1% to 5%. Fees for late payments are either $15 or 5% of the outstanding amount, whichever is greater.

If you choose to pay with checks instead of direct debit from your checking account, you will have to pay a $15 fee for each payment. A $15 fee will also be assessed if your payment is returned. Prepayments are not subject to penalties at Peerform.

Recommended Minimum Credit Score

In order to qualify for a Peerform loan, you must have a credit score of 600 FICO points.

Other qualification requirements

Peerform also calculates debt-to-income ratios, or DTIs. DTIs must be under 40% in this situation. Peerform will also require that you have an open bank account.

It is imperative that you have at least one delinquent revolving credit account on your credit report. We do not accept profiles with recent bankruptcies or other charges – other than medical – in the last 12 months.

Refund term

At Peerform, payment terms vary between three and five years.


Peerform funds cannot be used to pay education-related bills or refinance student loans. The loans are not available in Connecticut, North Dakota, Vermont, or West Virginia.


Organizations that invest on behalf of their members or clients – such as hedge funds, mutual funds, pension funds, etc. – who buy entire loans are eligible to offer financing through this platform.

LendingClub. We offer bad credit loans for people with bad credit

The company is positioned in the top tier of the best person-to-person (P2P) loans in the United States. This makes it unnecessary for us to introduce it.

More than three million borrowers and investors have been connected by LendingClub since its founding in 2007.

Person-to-person loan applicants can borrow up to $40,000 through LendingClub. A recent report states that the platform is open to working with borrowers who have good credit scores (above 600 points).

By using the pre-qualification tool, you can get an idea of their interest rate before you apply, since it creates a soft inquiry (or soft inquiry, in English) in your score that will not affect your score.

Pros of LendingClub:

  • Prequalification is available.
  • There are no penalties for early payments.

Cons of LendingClub:

  • According to our data, the average application fee is 4.86%, which indicates that few borrowers qualify for the lower rates.
  • It takes a long time for funds to be transferred.

Additional information about LendingClub:

The maximum/minimum amount a borrower can request ranges from $1,000 to $40,000, with an APR ranging from 10.68% to 35.89%.


Application fees range from 2% to 6%. The late fee remains the same as Peerform’s, i.e. $15 or 5% of the unpaid amount, whichever is greater. LendingClub offers the same no-penalty early payment option as the previous one.

Recommended Minimum Credit Score

As disclosed, it stands at about 600 points. Please note that your credit history, score and other financial details will be used to assess your profile as a borrower and also to predict loan risk. You’ll need a high credit score, low DTI, and a long credit history to qualify for the lowest rates on the platform.

Other qualification requirements

To apply for a loan, a person must be over 18 years of age, a US citizen, permanent resident, or live in the United States on a long-term visa. A verifiable bank account would also be needed.

Refund term

LendingClub offers varies between 40 and 60 months.


Unfortunately, Iowa residents cannot access loans from this platform.


Investors can start investing with a minimum deposit of $1,000. Moreover, they will be able to fund multiple loans in increments of $25 or more. Historically, LendingClub has generated returns ranging from 4% to 7%.

Upstart. The best person-to-person loan for people with limited credit history

Upstart was founded in 2012. Since its launch, it has provided more than $6.7 billion in consumer loans. Its founders were former Google employees.

Using its motto “you are more than your credit score,” the company claims that its subscription software helps them identify ideal borrowers based more on education and employment history than credit history or payment history.

Borrowers can access up to $50,000 at interest rates as low as 8.13%.

Pros of Upstart:

  • Fast financing.
  • The maximum loan amount is much higher than other P2P lenders.
  • Not everything revolves around the credit score. They also consider education and work history.

Upstart Cons:

  • Co-signers are not allowed.
  • Maximum APR of 35.99%, which is a bit higher than normal.
  • Loan application fee as high as 8% of the approved amount.

Additional information about Upstart:

The minimum/maximum amount a borrower can request ranges from $1,000 to $50,000 with an APR range of 8.13% to 35.99% .


And application fees range from 0% to 8%. Fees for late payments are set at 5%, calculated on the amount past due or $5, whichever is greater. Additionally, Upstart charges $15 for returned ACH transfers or returned checks, and $10 for physical copies of loan records.

Recommended Minimum Credit Score

You must have 620 FICO or VantageScore points in order to qualify for an Upstart loan.

Other qualification requirements

Upstart will check your DTI index and credit report to verify that you do not have any restrictions on accessing the loan, such as a bankruptcy notice, public records, more than five hard inquiries in the last six months, etc.

Applicants must be 18 years old or older, have a personal bank account, a full-time job – or a full-time job offer starting within the next six months – and verifiable personal details, such as name, date of birth and phone number of Social Security number.

Refund term

At Upstart, payment terms vary between three and five years.


Accredited investors can register on the Upstart website. A person must have an annual income of at least $200,000 ($300,000 if he or she is married) or a net worth of at least $1,000,000 in order to become an accredited investor. Upstart has a low delinquency rate among borrowers: 90% of loans are current or have been repaid in full.

Prosper: The best person-to-person loan if you have a well-established credit history.

Founded in 2005, Prosper is positioned as one of the best person-to-person (P2P) lending companies in the United States. In fact, it has dominated the industry since its launch.

More than a billion borrowers have received financing from the company since then. The interest rates on loans up to $40,000 are as low as 7.95% for qualified applicants.

Pros of Prosper:

  • Less expensive application fee than other P2P lenders.
  • Changing the due date of the monthly payment is flexible.

Cons of Prosper:

  • Slow platform for financing.
  • At least three lines of revolving credit must be open.

More information about Prosper:

The maximum/minimum amount a borrower can request ranges from $2,000 to $40,000, while the APR ranges from 7.95% to 35.99%.


Application fees range from 2.41% to 5%. The highest late fees are $5 or 5% of the due payment, whichever is greater. If you pay by check, you will have to cover an extra $5 fee or 5% of the payment, whichever is less. There are no penalties for paying early.

Recommended Minimum Credit Score

According to external sources, it is about 640 points, although this has not been revealed.

Other qualification requirements

The debt-to-income ratio with Prosper must be below 50% with a certain amount of declared income.

It is necessary for applicants’ credit reports to be free of bankruptcy filings -within the past 12 months- and have no more than five credit inquiries and hard inquiries in the last six months. A person who wishes to qualify for Prosper must have three open lines of credit.

Refund term

At Prosper, payment terms vary between three and five years.

Time to receive funds

Generally, it takes about five days.


The state of West Virginia and the state of Iowa are not eligible for this type of loan.

IA minimum investment of $25 is required to open a Prosper account. Average historical returns stand at 5.1%.

Funding Circle. The best for SMEs

Funding Circle was founded in 2010 and currently has 100,000 investors. The company has helped 81,000 small businesses succeed. You might consider applying for a P2P loan at Funding Circle if your business is already three years old and you have a FICO score of 660.

Pros of Funding Circle:

  • Suitable for small business owners with fair credit scores.
  • Quick funding is available.

Funding Circle Cons:

  • Only available to companies with more than three years of experience.
  • Make a hard inquiry into the credit report.

Funding Circle’s additional information is as follows:

Borrowers can request amounts between $25,000 and $500,000 with an APR ranging from 11.29% to 30.12%.


For application fees range from 3.49% to 6.99%. The best part is that there is no prepayment penalty. Late fees are 5% of the overdue amount.

A minimum credit score is required.

660 FICO points are required.

Other qualification requirements

In order to qualify for the loan, a company must have been in business for at least three years and cannot have filed for bankruptcy within the last seven years.

Refund term

Payment terms range from six months to five years at Funding Circle.

Time to receive funds

Just three days.


Nevada businesses are not eligible.


Investors must be accredited and willing to deposit a minimum of $25,000 in the Funding Circle investment account. Historically, the platform has returned between 5% and 7%. As an annual fee, investors will be required to pay 1% of loan repayments.

Pay off: Best for fair credit

Payoff was founded in 2005 to provide loans to people with limited credit histories. Especially if you were considering applying for an individual loan, this is very useful. With Payoff, borrowers can build credit while paying a low interest rate of 5.99%. The Payoff wallet is not available in every state.

Pros of Payoff:

  • Free access to the FICO score.
  • No prepayment penalties.
  • Prequalification option available.

Payoff Cons:

  • Longer financing times.
  • It is not available in the whole country.
  • Does not allow joint applications.

Additional details about Payoff:

The minimum/maximum amount a borrower may request ranges from $5,000 to $35,000 with an APR of 5.99% to 24.99%.


And application fees range between 0% and 5%.

Recommended Minimum Credit Score

640 points are needed to qualify.

Other qualification requirements

It only allows individual applications.

Refund term

Payoff’s payment terms range from 24 to 60 months.

Time to receive funds

Three to six business days.


Not available to residents of Massachusetts, Mississippi, Nebraska, and Nevada.

Person-to-person (P2P) loans in the United States. All you need to know

Peer-to-peer or P2P loans, which are sometimes also known as social loans or collective loans, are a form of financing in which a platform connects individuals or entities willing to lend money as a form of investment to companies or people who need it.

This could be considered an alternative to traditional financing, because the fintech is essentially an intermediary that 1) Allows investors to earn a higher return on their money and 2) Allows interested parties to apply for comfortable loans at home.

P2P loans have certain similarities to traditional banks in terms of interest rates and terms. The platform, for example, will review the person’s credit score. Payment history, employment, amount of monthly income, and DIT ratio will also be evaluated.

DIT ratios should be as low as possible. Getting a good interest rate – or even qualifying – can be difficult if you have credit issues.

How do person-to-person loans work?

Generally, the process of applying for a peer-to-peer loan is as follows:

  • Complete the online application. You will typically need to submit a soft or hard credit inquiry at this point.
  • Wait for the risk rating. By evaluating your credit profile, the platform will assign you a category or risk rating. Your interest rate and terms will be determined by your risk rating.
  • Evaluation of the application. Investors will examine your loan application to determine whether it’s too risky to lend to you or what you plan to do with the money. Employment and payment history may increase your chances of receiving the funds. Investors may compete to make you an offer depending on the platform.
  • Acceptance of the loan. If you are satisfied with an investor’s offer, you can review the terms and conditions to proceed with the loan. The funds may be deposited into your account the same day or within a week at the latest, depending on the platform.
  • Make monthly payments . P2P lenders report your payments to credit bureaus just like any bank or credit union. You can use this to build or improve your credit score, but keep in mind that if you fall behind on payments, your credit score might suffer. You should also keep in mind that -when defaulting- fines may be assessed, which will raise the total cost of the loan

Types of loans available on peer-to-peer platforms

Personal loans can be used for many purposes, at least many more than person-to-person loans. The following are the most popular types of peer-to-peer loans you can find on the Internet:

  • Personal loans .
  • Business Loans .
  • For home improvements or repairs .
  • Student Loans .
  • To buy vehicles .
  • To pay medical bills.

The investor side of the peer-to-peer world

Taking out person-to-person loans is an excellent way for people with surplus funds to diversify their investment portfolios and multiply their capital. The return is higher than those offered by top-yield savings accounts and certificates of deposit themselves.
The interested party must open an account on the P2P lending platform in order to become an investor. Upon approval of your registration, you can deposit the money that will be used to invest, that is, to lend it out to third parties. Many investors review loan applications and applicant risk ratings to decide which candidate to work with.
By using the platform, investors can track earnings, principal multiplication, and how borrowers make payments. Profits have to be taxed to be withdrawn, or they can be reinvested if they don’t want to be withdrawn.
Investors who are interested in peer-to-peer loans should be aware that, like any investment instrument, they are subject to risks. Firstly, there is no guarantee that the borrowers will repay the money as promised.
Furthermore, there is the possibility that the lending platform will close unexpectedly. Then you could lose a large portion of your investment, especially if the loan you made was unsecured.

Is requesting a person-to-person loan a good idea?

Peer-to-peer lending is an excellent option for those who cannot qualify for a traditional loan or who simply want to explore alternative sources of funding.

Nevertheless, it is important to remember that although fintech companies are fashionable, their eligibility requirements are very similar to those of traditional banks. Improve your credit score to lower your rates and fees. In this way, you can choose to go with a fintech or a traditional bank for a better deal.

Alternatives to person-to-person or peer-to-peer loans

The main alternative to peer-to-peer lending would be to apply for a personal loan. There are some options that provide up to $10,000 or more for people with good credit. Hence, you can explore them and compare them with the best peer-to-peer loans in the United States:

Institution APR Payment deadline More information
LightStream 3.49% – 19.99% 24-84 months LightStream
Best Egg 5.99% – 29.99% 36-60 months Best Egg
freedom plus 5.99% – 29.90% 24-60 months freedom plus
Lendingpoint 15.49% – 35.99% 0-48 months Lendingpoint
Upgrade 6.98% – 35.89% 36-60 months Upgrade
ADVANTAGE 9.95% – 35.99% 24-60 months ADVANTAGE
sofi 5.99% – 16.19% 36-72 months sofi
OneMain Financial 18.00% – 35.99% 24-60 months OneMain Financial

Frequent questions

Is it safe to invest in P2P Loans?

Is it safe to invest in P2P Loans

First of all, you must keep in mind that every investment has its risks. In any case, in general, crowdlending platforms are very careful when analysing projects.
There are different levels of risk associated with projects. Thus, the default risk can be reduced by investing in loans that appear to be safer. Although that means lower profits.
As with everything else, there are cases in which the loan is not repaid.
Diversifying your investment in several loans is important if you invest in peer-to-peer loans. Consequently, your risk is minimized.

Can a mortgage be financed with P2P loans?

Can a mortgage be financed with P2P loans

Peer-to-peer loans can be used to finance many different types of projects, including real estate. Mortgage loans are not included on this list.
You can use these loans to buy a car, go on vacation, start a business, or make home improvements. However, you cannot use them to buy a house.

How are P2P loans taxed in Mexico?

How are P2P loans taxed in Mexico

Credits between individuals are not subject to any specific tax, such as VAT, IEPS or ISR. There are, however, information regimes that you must adhere to based on the amount of money you have received.
You should notify the Tax Administration Service (SAT) in the event that you have received money in one of your bank accounts as a result of a loan requested from a person or credit institution.
As a consequence, income tax can be charged on the extraordinary amount if the authority considers it income.
When it comes to peer-to-peer loans, it is crucial to point out that you must provide information to the SAT if you receive resources worth more than $600,000.

Where to find private people who make loans?

Where to find private people who make loans

P2P credit platforms are the best places to find people willing to lend money. In addition to taking care of all legal aspects, they also make sure payments are made on time.

Where to invest in personal loans?

Where to invest in personal loans

Investing in personal loans through peer-to-peer platforms is an excellent idea.
There is no limit to who you can work with or projects you can choose from. Moreover, most companies offer you guarantees of recovering the money, as well as insurance.
Thank You!!
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