However, most borrowers on the platform are younger and have limited credit and employment history

However, most borrowers on the platform are younger and have limited credit and employment history

The platform provides a positive, transparent experience to both borrowers and investors. Most investors experience a solid risk-adjusted return and can create a custom portfolio based on their personal preference. Investors can also set financial goals and the system will show them the best way to allocate their capital to achieve those goals. This allows for a more diversified portfolio than other platforms.


Founded in 2012, Upstart is a well-recognized peer-to-peer lending platform that has funded hundreds of millions of dollars in P2P loans and continues to expand. Upstart uses a basic Oklahoma quick loan scoring model to carefully vet all borrowers .

On the investor side, Upstart requires a minimum investment of $100 and has a 0.5% annual fee. It also provides an opportunity for investors to diversify their portfolios. Investors must be accredited, meaning they must have an annual income of $200,000 or more.

Once an investor funds a consumer loan, they receive principal and interest payments until the loan is paid off. Loan terms are generally 36 or 60 months, and approximately 90% of all loans are paid in full.


A smaller P2P lender , Payoff has helped more than 100,000 borrowers meet their financial goals since its inception. To be eligible, borrowers must have a minimum credit score of 640 and a maximum debt-to-income ratio of 50%.

Loan terms are between two and five years and are repaid in monthly installments. The minimum loan amount is $5,000 in most states, while the maximum amount is $35,000.

The platform also has a feature that lets investors see a potential borrower ‘s creditworthiness before they lend them money, thus reducing the risk.

Lending Club

Lending Club was established in the early 2000s and has since become the largest P2P lender in the world. It has issued more than $9 billion since it began and has boasted overall positive returns for investors.

In 2018, the average annual return on investment was between 8% and 10%. Although current rates are unknown, Lending Club upholds a reputation for having one of the highest returns on investment.

On average, loan terms are three to five years in length. Investors must pay a 1% annual fee and can invest anywhere from $1,000 to $40,000. Additionally, investors can manually choose their investments or let the system automatically choose for them.

Best Egg

Founded in 2014, Best Egg has given upwards of $11 billion in consumer loans in 47 states. The platform’s process is heavily streamlined and it endeavors to connect the right investor with the right borrower .

Loans start at $2,000 and go up to $50,000 with an APR ranging from 5.99% to %. Borrowers must have a minimum credit score of 600 and a low debt-to-income ratio (no more than 36%). Loan terms are three to five years but can be repaid early without a fee.

Best Egg does require investors to purchase whole loans, but the platform takes on some of the risks of the loan, which provides a little bit of a safeguard for investors. With high ratings online and transparent lending practices, this accredited platform is known for its low default rates.

SoLo Funds

One of the newer entrants, this startup connects lenders and borrowers. With a structure similar to a cash-advance app, borrowers specify how much they want to borrow, the payback date and how much they’re willing to “tip” the investor who loans them the cash (there is no traditional interest rate.) From there, the online lenders – your peers – search the platform and choose which loan requests they’re willing to fund. If you’re lucky, you’ll find a match.

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