UNLESS YOUR HAVE SPOTLESS CREDIT, WORKING THROUGH A BANK CAN BE AN UPHILL BATTLE ... THERE'S AN INTERESTING ALTERNATIVE ONLINE ...

Old way: Pick up the phone and call your bank or log on to sites like Bankrate.com to compare rates/lenders and see if you qualify.

New way: Peer-to-peer lending online.

Peer-to-peer lending is a relatively new trend – people turning to perfect strangers vs. banks for loans to buy houses, start companies, pay off student loans or credit cards, etc. on one of the most innovative sites out there: Prosper.com. They certainly seem to be onto something with loan volume growing to over $130 million consisting of 620,000 "individuals." Pretty good interest rates for both borrowers and lenders and priceless for people in a bind

We'll be revisiting this exceptional site with Matthew Blades on the radio. Prosper.com is peer-to-peer lending. Meaning you lend me the money & I pay you back. Plenty of checks & balances in place, but no banks. Their tagline is terrific: "Let's Bank on Each Other."

Loan rates can be as low as 7.68% .... Really savvy lenders are helping people, managing their risk and yielding 11%+ returns. Right now, one man is looking for money for a new kitchen for his wife; some store owners need to purchase summer inventories; there are students seeking to pay off loans; wannabe first-time homeowners .... To see it is to believe it ....

Comprehensive WIRED article. Related WalletPop.com Opinion here.