Has anyone had any experience of using money-lending websites? I am considering dipping my toes into it as a lender, given the pitiful interest rate banks can offer currently.

On the face of it, it seems to be a good, ethical alternative to using banks, and if you can stomach the risk you can get superior interest rates compared to high-street banks (6%+)

I can't see the downside!? Borrowers get a decent rate, lenders get a decent rate, everyone's a winner?

 

From the adverts i see on the tv, borrowers don't get a good rate at all???

 

Also i think the companies behind it are taking advantage of people who are stuck in a bad borrowing situation. All imo of course.

 

Zopa beat Barclays and Halifax rates by 4% apr. The banks kept telling me I wasnt entitled to best rates.
Dunno why, I'm solvent and dont have any history of defaulting.

 

Are you referring to the payday loan adverts, like wonga? I was more referring to the money-exchange sites such as Zopa where you can either lend or borrow at a competitive rate.

 

I see, completely wrong end of the stick then lol.

 

I would never get involved with the moneylenders!

Les