Best Practices for Borrowers

Being a good borrower is not that easy. There are a lot of variables that define your personal credit worthiness.

In this line of thought we recently launched our credit scoring model. Your score is like your financial reputation, and can give lenders an idea of how responsible and reliable you are with money. Having a low score indicates you are not responsible with credit or you are just new to the system and may be a risky bet for a lender (you may default on the loan or quit making payments). As a result, you’ll likely be hit with a higher interest rate. Having a high credit score provides a great reason for lenders to believe in your ability to handle your money and loans in your name. You’re likely to be granted a lower interest rate, since you are seen as likely to repay the loan.


Don’t give up if your credit score is less than great at the beginning. As with most things, knowledge is power, and understanding what lenders are looking for will help you get your loan funded and you credit score high. Here are some advices that may help you to improve your credit-worthiness:

Verify your actual income

If you can’t give lenders adequate, legitimate information that shows proof of income and assets that can be used to pay back the loan, the lender may decide not to venture with your listing at all. That is why we strongly recommend to keep the income information in your account up to date. All the documents you submit pass through a detailed inspection by our verification specialists and remain securely in our database.


Verify your identity with Lenddo

We’re working together with Lenddo in order to provide our borrowers with another easy way to verify their identity and demonstrate their creditworthiness. The only thing you need to do is to give Lenddo a permission to review your personal email information. Connecting Lenddo would take only 2 minuses but it may also cause a great impact on your credit score!


Link all your social and trusted connections

Most of the lenders take into account social media presence when determining a loan applicant’s eligibility, so make sure that you share as much information as you can.


We use social and trusted connections to get more information on borrowers while calculating their credit score as well. It would be good if your accounts are properly filled and all the personal information is correct. For example, adding education or marital status on Facebook or updating your professional experience on LinkedIn could have a good influence on your score.

Do not undervalue the description box

Writing is a great way to present your idea to our investors. The funding of your loan request depends on how well you present yourself and your financial needs to the lender. Be as clear and explicit as possible why you need the money. Explaining specifically what the funds will be used for and why they are needed will help our investors to decide whether they want to invest in this loan or not. Investors will also look for relevant information regarding your financial status or any other details that would expose your ability to repay the loan.


Reduce the amount of debt you owe

Having a lot of outstanding debt could indicate a greater risk of default and bring down your score. We advise to take one loan at a time and not to max your credit limits all the time.


Do not break your commitments

Possibly the most important step in building a trust is to not break your commitments. Make sure you chose the right term and payment cycle for your loan. Even if you are late with your payment by a few hours only, it could destroy the trust our investors have in you. It will affect your credit score as well.


Even a single late payment could have a bad influence on your credit score, but rather than worrying about it, be sure you cover all your due payments on time from now on. A one-time two or three days late payment will probably not drastically affect your credit score, but repeated late payments will definitely have a more significant effect, even if you are late by only a few hours each time. A pattern of lateness is worse than a one-time mistake.

Be honest

If you truly cannot meet the promised deadline, be decent enough to explain your investors the situation you are in. Telling the truth even when the truth isn’t perfectly pleasant will help you to become much more trustworthy.

Being mindful of what is takes to get debt today and attending to details related to your borrower profile can make the process of funding your loan easier. We hope you will find our advices as a good start for your future borrowing!

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