In the time of credit crunch, nearly all banks shutdown lending and their credit card rate is still high enough over 18%. I guess they have not heard the news Fed has lowered the rate to near 1% now. I always don’t like banks since they are the one created this mess and they charge their customers way too much. Banks have been very reluctant to lend any money to small business, mortgage. But there is one new way for small business to get the loan, social lending. Today I am writing about Lending Club.

Lending Club is the new guy in the block, and they are gaining a lot of momentum. When you lend out money in Lending Club, you are actually investing there. Let me review some questions first.

Is this investment with good return? YES. There is a good market you can earn about 7%-15% from the fund you invested in Lending Club. This is very good rate in current market conditions. Of course, if you are a credit card company, you can charge 20%.

Is your money safe? Not 100%, but you are the make the decision who to lend to. This is what is so brilliant about social lending. When the borrower is not paying back, you can only blame yourself. Kidding aside. Here is how Lending Club protects you:

1. Every borrow FICO score is higher than 640. Also you got an overview the borrower’s credit file.
2. Every borrower’s account is reported to credit bureaus as it go, good or bad.
3. If a loan is late, Lending Club will actively pursue it.
4. If a loan goes sour, the account will be turned over to outside collectors.
5. In some cases, Lending Club will take direct legal action against borrower

To whom you invest the money? This is a tough question. I personally choose the one has a higher credit score and rent a place. This way I am sure they will not brought down by depressed housing value. Then I read their stories and feel the stories. If the story is convincing enough, and I feel connected enough, I will make s small investment there. In the end, that is good interest rate, beat my Amboy Direct.

Good Luck to you all if you actually sign up as a lender in Lending Club.

Buying a house or condo is likely one of the biggest purchases that you’ll ever make and although it would be great, most people cannot afford to buy a property without borrowing money. When you are looking to borrow hundreds of thousands, it is very important to research various mortgages to find the best option. The best mortgage can differ depending on your needs. Finding the lowest interest rate is important, but you should also look at the restrictions of the mortgage, like the penalties for paying the mortgage off early or the regulations on refinancing.

If you already own a home, but you are finding that your debt just keeps pilling up, you may want to consider a remortgage. Remortgages allow you to consolidate debt from loans or credit cards into a mortgage. This may be a great option, as interest rates on remortgages may be lower than credit card or other loans. Similar to other mortgages, you should compare remortgages based on the applicable interest rate, and restrictions.

In either situation, it is important that you have mortgage insurance. Mortgage insurance provides protection for a period of time if you cannot make your mortgage payment due to redundancy, sickness, or injury. This will ensure that your house is not taken away just because you were injured, and unable to pay your mortgage. It is just as important to protect your investment, as it is to find the best mortgage.

As one of your greatest investments, buying a property will also likely be one of the biggest decisions that you will have to make. It is just as important to find the right financing options, as it is to find the perfect property. Find the best option for your situation, protect your purchase, and you will be a very happy homeowner.