Peer-to-Peer lending models have been gaining widespread popularity lately. In this www.myinstantoffer.com reviews, I’ll give you a detailed overview of one of the pioneers of this movement.
MyInstantOffer from Lending Club is an online p2p loan service. It offers investors a means of maximizing their returns. And it offers borrowers a lower rate of interest than most official financial institutions. The best part: MyInstantOffer is completely legal and legit.
WebBank is the official organization that handles and provides the loans in this p2p platform. They provide loans ranging all the way from $25 to $20,000, sometimes even without collaterals.
Sound too good to be true?
As you’ll find through this www.myinstantoffer.com reviews, MyInstantOffer is a win-win solution for both investors and borrowers.
But is it right for you?
Read our MyInstantOffer.com Lending Club reviews and find out!
MyInstantOffer Review: For Investors
MyInstantOffer Lending Club offers returns ranging from 5.06% to 8.74%.
Now that this MyInstantOffer Review for investors has your attention, let’s get into the nitty-gritties.
You might have heard of the old investment adage: the higher the rewards, the higher the risk. This is very true for MyInstantOffer. Investing with MyInstantOffer.com is certainly a lot riskier than traditional financial institutions.
In MyInstantOffer, you have to collect “notes” that represent a loan that will be repaid with interest over a period of time. By the end of the loan term, you receive both the principal amount you invested along with the interest. These are all fixed-rate loans for a period of either 36 or 60 months.
The Borrowers are evaluated based on their credit scores and history, including their debt-to-income ratios (DTI) and recent credit activities. Furthermore, the loans are priced and graded based on their potential risk. These gradations range from A to G. Generally speaking, higher grades incur lower rates.
MyInstantOffer Lending Club also charges a minimal investor fee. For every payment received, it charges investors a 1% service fee.
MyInstantOffer Lending Club can be extremely fruitful. But you should beware of the following potential risks:
- Since Lending Club isn’t an official financial institution, its loans are not insured by the FDIC.
- Borrowers may occasionally default on their payments. In those cases, the investors will not receive payment on that month since Lending Club doesn’t employ “best practices”. As such, it’s incredibly important to thoroughly vet the borrowers.
- For loans that are at least 16 days overdue (with not litigation), the investors have to pay a collection fee of 18%. In case litigations are involved, the investors have to pay all attorney costs, including but not limited to their 30% hourly fees.
- If the borrower fails to clear the payment within 150 days, the remaining principal balance is deducted from the investor’s account. If the borrower later makes the payment, it will be returned to the investor on a pro-rata basis.
There are no sure shot means of completing eliminating all risks. But you can mitigate the risks by taking the following measures:
- Spread your investments over a large portfolio.
- Familiarize yourself with Credit Risk Management practices to ensure you only trust reliable borrowers.
- Set your own credit score requirement for your borrowers.
- Verify the borrower’s employment stability.
- Select loans that are refinancing existing debt rather than taking on new ones.
- Ensure a low borrower DTI of below 30%.
Investor eligibility criteria generally change from state to state. However, in most cases, potential investors have to meet the following criteria:
- Investors must earn a minimum income of $70,000 per year, or they must have a minimum net worth of $250,000.
- Not allowed to invest any more than 10% of their net worth into Lending Club.
- Minimum $1,000 required to open a Lending Club account.
- Minimum $25 required for investing in a single note.
MyInstantOffer Review: For Borrowers
With MyInstantOffer, borrowers can avail of a considerably lower rate of interest than official financial institutions. Furthermore, they often don’t even require any collateral.
Now that this MyInstantOffer Review for borrowers has your attention, let’s get into the details.
Borrowers can avail of fixed-rate loans for a number of loan types. The loan period is generally between 36 to 60 months. The maximum borrowing amount is determined by the type of loan and the borrower’s credit profile.
The payment is automatically deducted from the borrower’s bank account on a regular basis. Borrowers may make the payment manually as well by paper check. However, in that case, borrowers are charged a $7 processing fee for the payments.
Types of Loans Offered
MyInstantOffer Lending Club offers the following loans:
- Personal Loans: Personal Loans, if handled wisely, can be incredibly beneficial. These can be used for purposes of debt consolidation, home improvement, vacations, or just about anything else. Personal Loans are capped at $40,000 and require no collateral.
- Business Loans: These are fixed-rate monthly payment loans for 1 to 5 years. Business Loans are capped at $300,000. However, no collateral is required for loans below $100,000.
- Medical Loans: Lending Club finances loans for medical purposes, even cosmetic medical procedures like a hair treatment, weight loss surgery, etc. Medical Loans are capped at $50,000.
Borrowers are vetted based on a number of factors including their employment history and credit score. These factors are always in flux and relative. However, you can consider the following criteria as a benchmark:
- Minimum Credit Score of 699.
- Minimum Income of $74,414 per year.
- Over 16 years of Credit History.
- Non-Mortgage Debt to Income Ratio of 17.9%.
How I’m Investing Using MyInstantOffer.com Lending Club
I can confidently write this MyInstantOffer review because I’ve been investing with them for a few years now. Currently, I have invested a nominal amount just shy of $2,000. On that amount, I’m gaining a net annualized return of approximately 10%. That’s considerably higher than the returns you get on most ordinary investments.
You can invest in three options based on their risk and returns potential. Option 1 is low-risk with potential returns of around 9%. Option 2 has moderate-risk with potential returns of around 15%. And Option 3 has high-risk with potential returns exceeding 18%.
I generally play it safe with Option 1. But even then my returns are higher than they would be elsewhere.
The Bottom Line for Our MyInstantOffer.com Review
I hope this MyInstantOffer.com Review has proven helpful to you. As you can see, MyInstantOffer.com is ideal for investors who are not completely risk-averse and for borrowers with a very strong credit history. If you meet the criteria and are careful, the potential returns can be well worth the manageable risks.
If you’re keen on maximizing your returns, you should Sign In to MyInstantOffer.com right now!