There are many different lending platforms on the market, which offer peer-to-peer financed loans. These companies can also permit institutional investors, such as trusts, pension funds, insurance companies, and banks, all of which can offer personal loans.
Though most peer-to-peer lenders will allow those with average to poor credit to borrow, generally a higher interest rate will come along with any assets lent which works like a payday loan.
Here's a brief news segment discussing whether the peer-to-peer market will continue to see gains, despite 2016 Federal Reserve raising rates:
However, for those with good to very good credit, peer-to-peer lenders offer a chance to qualify for low-interest rates for borrowers and high-return rates for investors. One such peer-to-peer lender is CircleBack Lending. Reviewed below are the lending practices, customer opinions, and complaints regarding the peer-to-peer lending company, CircleBack Lending.
CircleBack Lending Reviews
For qualified applicants, CircleBack Lending offers personal loans to be borrowed, through an online website-based P2P Lending institution. Similar to a banking institution, CircleBack P2P Lending offer loans to meet a wide variety of customer’s individual needs and personal or business goals. Customers can use a loan from CircleBack Lending, for debt consolidation, home improvement, refinancing on credit cards, help with medical expenses, marriages, moving, startup businesses, vacations, auto loans, and much more.
Established in 2012, CircleBack Lending offers the benefits of a fast application process, quick turnaround on funds being received after a loan is approved, and low-interest rates. Unlike many other peer-to-peer lending service companies, CircleBack Lending offers loans, which are backed by Country Bank, located in Delaware, United States.
How The Process Works
The first step in borrowing a loan with CircleBack Lending is to open a loan request. It will require you to specify for exactly how much the loan will be requested, as well as if the borrower would like a 36-month repayment term or a 60-month term.
Once a potential borrower has completed the necessary documentation for the applications process, the request will be reviewed by CircleBack and a determination will be made on the approval of the loan. Once the loan has been approved by CircleBack, they will deposit funds into the borrower's account, directly. The entire application and approval process—from beginning to end—usually take between one to two weeks.
CircleBack Lending Interest Rates
As is the case with most peer-to-peer lending services, interest rates can vary substantially, based on a variety of factors. The two most prevalent factors in determining a borrower's interest rate are the duration of time which the term of the loan has been set and the borrower’s credit score going into the application process.
The interest rate will be set lowest when the term length is the shortest. Better rates are also given for lower initial loan amounts. This is because a lower loan amount is easier to pay back as compared to a large loan. At CircleBack, rates are available between a range of 6.6% interest, and 36% interest rates. The lower interest rates are usually granted to borrowers who exhibit a prime credit rating and funds borrowed under $20,000.
Loan Borrowing Limits at CircleBack Lending
Borrowers can choose from a range of loans, ranging from $3,000 to $35,000 for personal loans. Loan limits and amounts lent will vary on each individual basis, hinging on the factors that were mentioned above.
Depending on whether one is approved for an interest rate of 6%, or 36% will make a difference of over $10,000 in interest accrued on the overall loan. One's own financial situation—as judged by the approval committee of CircleBack Lending—will determine whether a higher interest rate will produce a higher likelihood of loan default by the borrower in question.
CircleBack Lending Complaints
CircleBack Lending claims many benefits of their service and that their business is catered for super-prime rated borrowers. However, there is user reviews and evidence to suggest that CircleBack is not quite as choice heavy as they claim.
Some of the negative CircleBack lending reviews and comments, listed online, could be based on the fact that they market themselves to both the sub-prime rated borrower and the super-prime rated borrower. Compiled below, are several users comments that have had a less positive experience with CircleBack than the company's website information would suggest.
From SuperMoney.com, October 26th, 2016: “Terrible. Everything they tell you is a lie. You cannot pay easily, you cannot pay them off electronically, and they want $15,000 in addition to the original loan. Stay as far away from them as possible.” - Anonymous
March the 22nd, 2016: “They were somewhat deceptive in their approach. I got an email saying that I was accepted for a loan of 30k which was based on the decent credit score I had and it was at an interest rate of 6.63%. However, with my husband in school we had lived off of our credit cards—which so many people do. I thought that getting a loan and consolidating these bills would be a great help while we prepared our home to be sold... my score, according to CircleBack, is excellent. Therefore, I applied for the loan but was denied immediately! I called them up but was told that “other factors” were taken into consideration. I was deceived and lied to.” - Diane E.
Application Process Fee at CircleBack Lending
The in-the-moment application process is very quick, easy, and painless usually only taking a few minutes. After CircleBank has reviewed a borrower's loan application request, they will make a positive or negative determination regarding the loan’s approval.
If the loan is approved, the funds from the loan can show up in the borrower's bank account as soon as the next business day. Like all loans from any peer-to-peer lending service, the loan will carry an interest rate. However, every loan will also carry an introductory fee, applied as a one-time fee at the loan's inception. This fee can range from less than 1% to around 5% of the total value of the loan, not including the accrued interest which would be applied over the loan's term.