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Crowd Credit

One of the most recent and interesting ideas that has emerged in the financial sector has been a crowd-funded credit , where a market is created where anyone can lend money to anyone and then as much as he or she has borrowed then gets the money back for that money.

Crowd Funding Services,

Crowd Funding Services,

As Kickstarter has been growing in popularity for several years, have managed to attract a lot of investment into many and varied projects, but in the field of credit, such crowd-funded activities have not yet been carried out. But all this has changed and young entrepreneurs who have the determination and knowledge to change something for several years around the world are trying to develop such crowd-funded credit commitments and have finally managed to reach a critical mass when people start to seriously consider this as an alternative type of borrowing .

Crowd lending at first glance

Crowd lending at first glance

We all would, however, prefer to borrow from such a platform where money is lent to us by other small investors rather than to withdraw money from a bank or non-bank creditor whose only desire is to squeeze out as much profit as possible on each loan lent. Of course, the purpose of such a system is also to make a profit for investors, but anyone can be an investor there and therefore, even low interest loans are often financed by the same people as you or I who trust the debtors and believe that they need this money more than others. In such systems, it would be ideal to have the same method as on crowd funding platforms, where every prospective debtor can explain to whom he needs the credit and why others should lend him this money and then investors should also choose where to invest their money. opportunities to invest in one or the other lender, depending on how loyal he is. I do not know how much people would like to publicly explain to someone why they need this money, but most likely there would be enough supporters. Crowd lending at first glance seems to be something brand new and innovative and why not work if the crowd funding programs work so well.

Declares Credit Prices

Declares Credit Prices

But credits are a very different thing, and people often borrow ill-advised and do not know how to repay, and then they are fined. And therefore, the general attitude towards credit in society is not good, even if we almost all use these credits. Particularly bad reputation is for quick loans and non-bank creditors who issue short-term loans to individuals and earn a high percentage of these loans. People often have difficulty repaying these credits in a single payment and therefore also have problems. And then there are different opinions in the media that interest rates should be lowered and more payments allowed, but none of these commentators think that this desire can be implemented as a business and rather than hoping for the government to intervene in an industry, but both try to create your own business and compete with industry at low interest rates.

These crowd-funded loans

crowd-funded loans

This is exactly the idea for those crowd-funded credit platforms, because everyone can invest money on these platforms and also get credit, but the problem is that interest payments on these systems are not as small as banks or private creditors and therefore people also have no reason to choose these services. If one of them declares that their credit prices are 2 times lower than those of other lenders in the credit sector, they will surely get a huge inflow of customers right away. I cannot foresee whether these crowd-funded loans will grow and grow, but the fact that innovation in the credit sector is once again a good factor and will certainly lead to new discoveries that will be more beneficial to consumers in the long run.

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