Understanding Direct Borrowing and Lending Online

The credit crunch means that many people who need loans have a hard time getting them from traditional banks these days. A new alternative called Person-to-Person Lending has come along to fill in the gap. Over $130 million a year is now being borrowed and lent directly over the Internet. Curtis Arnold, an expert on credit issues who runs Card Ratings.com, discusses the whole person-to-person lending phenomen in this interview. For borrowers, this concept allows you to borrow at much lower rates than you could get from a bank. For lenders, it allows you to earn a higher yield than you could get from bank CDs or money funds and still have great security. Find out much more about this fascinating new way to bank in this Money Answers interview!