RateSetter Rolling Loan

Good:
You are borrowing from other people, not from banks, so you can get much better rates

Bad:
It may take a bit longer to get your money as you have to wait for someone to offer you the money

Verdict:
Relatively new company, similar to a credit card so your balance rolls over and you pay a low interest charge at the end of the month - they are already highly recommended for peer to peer lending for their straightforward and easy service

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 better compared to a credit card because you take out a loan which is a one month contract. At the end of the month, you pay the interest, the Credit Rate and an amount that goes towards paying off the loan. Your outstanding balance is then rolled into a new contract. How long the loan lasts depends on how much you choose to pay off each month although you must pay off at least 4.17% of the balance each month.

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 initial 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.