What is your criteria for determining the person that you can lend money on?
- Thread starter Stardom22
- Start date
So far, I have only lent money to my brother. He paid me back promptly. I think if I need to lend money to someone, I must find him/her trustworthy and has the ability to pay me back.
That is a good way to secure ourselves in lending some money to others. As for me, I usually ask for any collaterals to make sure he or she is going to pay me back.
Personally, I usually let him or her sign on a piece of paper about the agreement. At least, I have the proof that he or she borrowed some money from me.
I am not a really big fan of lending money. In fact, I absolutely dislike earning interest. This is why I have always preferred investing in businesses rather than lending out money. However, in rare cases, I would offer interest-free loans to my family members in case if they really need money.
I have a strict rule in lending money to others, especially friends. I can do it with my immediate family only.
