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P2P Lending Emerges as Lifeline for Borrowers with Poor Credit
P2P Lending Emerges as Lifeline for Borrowers with Poor Credit
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BTCCSquare news:
Traditional financial institutions have tightened lending standards since the 2008 crisis, leaving borrowers with poor credit scores stranded. Peer-to-peer (P2P) lending platforms now offer a viable alternative, connecting investors directly with borrowers and bypassing traditional banks.
For those with bad credit, P2P loans provide critical access to capital—albeit at higher interest rates—while avoiding predatory payday lenders. The model promotes financial inclusion by serving segments ignored by conventional banks.
Six key advantages make P2P lending transformative: accessibility, structured repayment terms, faster approval, competitive rates compared to predatory lenders, credit-building opportunities, and diversified funding sources.
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