RateSetter Loan

Good:
You are borrowing from people, not banks, so you can get lower rates and better terms

Bad:
It may take longer to get your loan as you have to wait until somebody offers you the money

Verdict:
Relatively new peer to peer lender that is already becoming highly recommended, really low interest rates even compared to your primary bank, definitely worth trying them as the application form is really simple

Ratesetter.com is a peer to peer lending website. What this basically means is that you, (the borrower) borrow directly from another person (the lender), cutting out the bank. This particular type of loan from RateSetter is more like a traditional loan. You set up a contract between yourself and the lender and you pay the loan back over 3 years in 36 equal monthly payments.

You can apply online with Ratesetter.com. Their application form is only a few pages long and is really simple. Step one is getting a quote - RateSetter will tell you how much you can borrow and the likely interest rate. Step Two is confirming how much you can borrow - RateSetter checks your credit history by carrying out a "soft" search which has no impact on your credit rating. Step Three is RateSetter matching you with a lender. Step Four is them sending you the money. The money will be sent the day after you are matched with a lender.

When you have finished your intial application, they will send you an email with your account number which you need to keep hold of. Their quote is free, with no-obligation and does not involve any credit checks that will have an impact on your credit file. You are told via email within one working day if you have been accepted, then you can log-in and see which lenders are available to you. RateSetter will give you a Credit Rate based on your credit profile. The better your credit profile, the lower the rate - the worse your credit profile, the higher the rate.

One of the most interesting things is that Ratesetter only run what is called a soft credit search. What this means is they can view your credit history but it wont leave a mark on there that other lenders can see. Every borrower is given an individual limit that they can borrow depending on their credit history and financial position. You will be given a credit rate which will be based on your credit score. The higher your credit score, the lower the credit rate. This credit rate is added to the rate you agree with the lender.

Customer reviews tend to say that this company are quite good. They are relatively new so their rates are competitive. One of the only things is that they are completely online, meaning there are no branches to go into if you run into any problems.