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Personal Loans

How to Apply for a Prosper Loan

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Peer-to-peer lending websites, like Prosper, offer borrowers a unique way to secure loans funded by everyday people. It’s a highly convenient loan option to consider if you’re looking to quickly borrow a large sum of money with a competitive, fixed interest rate.

Prosper APR currently ranges from 6.95% to 35.99%, fixed depending on factors like your creditworthiness and loan term. In this article, we’ll show you how to apply for Prosper loan, explain the loan conditions and discuss its pros and cons.

How  Can You Get Approved for a Prosper Loan?

To qualify you must live in a U.S. state other than Iowa, Maine or North Dakota. The application process takes a few minutes, however Prosper’s criteria for an approval is selective. According to the Prosper Prospectus, these are the conditions used to evaluate applicants:

  • Credit score –
  • Credit inquiries – You can’t have more than seven inquiries on your credit report within the last six months.
  • Income – You must have some form of regular income that proves you can repay the loan you apply for.
  • Debt-to-income ratio – Your debt-to-income ratio must be below 50%.
  • Open accounts – You must have at least three open credit accounts.
  • Bankruptcy – You must not have filed for bankruptcy within the last year.

Not sure if you qualify? No worries! Prosper does a “soft pull” of your credit history when you apply, so you can head on over to the site* and shop for rates without worrying about it affecting your credit score.

How to Apply and Receive Loan Funding

You’ll find the application process for a Prosper loan is very straightforward.

Step 1: Check Your Rate

As soon as you get to the Prosper homepage, you’ll be greeted with a form to input your desired loan amount, the purpose of your loan and the quality of your credit.

Prosper-Check-Rates

*For reference only – rate may differ.

Once you fill in the form and click “Check Your Rate”, you’re taken to another page to input more information about yourself, so Prosper can perform a quick credit check to determine your rate. Be honest here because this is only the preliminary check. Later in the process, Prosper may ask you to provide documents such as pay stubs and a driver’s license to verify the data you enter.

Prosper-Custom-Rate

Step 2: Choose your loan amount and accept the offer

Next you’ll arrive at the loans and rates you qualify for if your application is accepted. I put in $2,000 for an example and below is the information it spit out. First, you’ll see the loan offer for $2,000 and below you’ll see additional loan options they offer based on the information I provided.

Loan-Qualification

Other-Interest-Loans

Step 3: Finish application forms

After you settle with a loan option, Prosper will ask about your occupation, details of your employment and social security number. Then the final step on the application is entering the bank account where you want the loan money to be transferred when it’s funded by your peers.

Prosper-Verification

Funding Your Prosper Loan

To receive loan funding, you create a loan listing which includes the reason you need a loan and the loan terms you qualify for among other details. A loan listing is similar to an advertisement and is shown in the Prosper marketplace where investors shop for loans to invest in.

Loan listings stay active for 14 days. When a loan is funded the money is deposited into the bank account you provide. If your loan listing does not receive the minimum amount of funding it’s cancelled and you must start the application process over again.

Terms of the Loan

Prosper offers loans from $2,000 – $40,000 and loan terms from 36 or 60 months. The interest rate you receive for a loan depends on factors like the economy, your loan term and Prosper Rating. The Prosper Rating is a proprietary grading system they use to rate applicants from AA (low-risk) to HR (high-risk).

Applicants closest to grade AA pay the lowest interest rates and can borrow the most money. On the other hand, applicants closest to HR receive higher interest rates and are eligible for less funding. Prosper calculates your risk rating by considering your credit report, credit score and other internal scoring metrics its developed by researching the payment history of other Prosper borrowers.

There’s no fee for creating a loan listing on Prosper, however if your loan is funded you must pay an origination fee which is a percentage of the amount that you borrow depending on your Prosper Rating. Here’s the current Prosper origination fee table.

Prosper-Origiantion-Fee

Like any other loan, Prosper does have additional fees for specific circumstances. For instance, a bounced payment costs $15 and late fees are charged when payments are over 15 days late. (Its entire late payment and fee schedule can be found here).

There isn’t a prepayment penalty, but you must factor the origination fee into the overall APR when you determine how much this loan costs you. SoFi* is one of the only personal loans without an origination fee, so you should always check to see if your APR would actually be lower with SoFi before committing to another lender.

Pros and Cons of a Prosper Loan

Now that you’ve got an understanding of how the Prosper loan process works, let’s weigh both the good and the bad of taking out a loan with this peer-to-peer lending site.

Pros

  • There’s a very quick turnaround for loans if you meet all the requirements in a timely manner.
  • It does a “Soft Pull” when you initially apply to offer you rates without harming your credit score. A hard pull will be performed when you accept a loan.
  • You can pay your loan off early without penalty.
  • Interest rates are fixed.

Cons

  • The interest rate you receive may be steep if your credit isn’t stellar or you don’t meet some of Prosper’s other minimum requirements.
  • The origination fee is based on the rating Prosper assigns you, so if you’re deemed high-risk it may be pricey.
  • Prosper considers self-employed people high-risk, so you may have trouble securing a loan if you work for yourself.

A Strong Option for a Personal Loan

Depending on your loan needs and credit history, a peer-to-peer loan from Prosper may be a better option than other debt vehicles like credit cards because of lower and fixed interest. But remember, it’s important to weigh all of your options in order to locate the best loan for your unique situation and credit profile. Go to our personal loan marketplace and be sure to check your rate options with every provider that offers a soft pull (any provider with an A score) and won’t hurt your credit score. Your goal should always be to get the lowest rates, so be sure to explore all your options.

*We’ll receive a referral fee if you click on offers with this symbol. This does not impact our rankings or recommendations. You can learn more about how our site is financed here.

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Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.

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Capital One 360 Checking Account Review

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If you’re searching for a checking account with minimal fees, you’ve likely considered depositing your money into an online bank. But with so many online banks vying for your business, you may wonder which account is best suited for your needs.

The Capital One 360 Checking Account boasts no fees and no minimum balance to open which is pretty standard in the online banking world. However, there are other unique features of this account that set it apart.

The Capital One 360 Checking Account At A Glance

Let’s start with the basics. To qualify for 360 Checking you must be 18 years or older and a U.S. citizen or permanent resident with a social security number.

These are the perks ofopening a 360 Checking Account:

  • No monthly fees
  • FDIC insurance coverage
  • A free MasterCard debit card
  • No minimum balance to open or earn interest. Rates are variable and account APY ranges from 0.20% to 1.00% depending on your balance.
  • Use of Bill Pay. Send bill payments directly from your checking account for free. And set up eBills to receive electronic bills from participating merchants.
  • Person2Person payments. Send money free of charge to people who bank with Capital One 360 and elsewhere. Transfers to Capital One 360 accounts occur instantaneously. Transfers outside of the bank take up to two business days to authorize once the recipient approves it.
  • Access to 38,000+ Allpoint and Capital One ATMs for free. Drawing cash from an online account or making a deposit is a breeze, just search for an in-network ATM on Capital One’s mobile app or website.
  • Use of CheckMate for check deposits. Take photos of your checks from your mobile phone to make deposits. No standing in line or locating an ATM necessary.
  • Turn your card on and off. You can deactivate a card yourself online which is helpful if it’s stolen or missing.
  • No overdraft fees. Instead of a fee they offer an Overdraft Line of Credit that charges you a competitive interest rate if your account falls below zero.

Depositing Cash and Checks

Before taking the leap to online banking you may feel apprehensive about giving up access to a live teller for bank deposits. Fortunately, 360 Checking offers several simple ways to fund your account.

You can transfer money from another bank or set up direct deposit from your employer. You can also deposit cash and checks at 360 Cafe and Capital One branch ATMs. Find deposit locations near you with its ATM locator map.

Avoid using an ATM altogether for deposits and take snaps of your checks and upload them using CheckMate. The 360 Checking website offers a short demo to show you exactly what’s involved with depositing remotely.

A Closer Look at Overdraft Protection

promo-checking-halfThe 360 Checking account has a pretty lenient overdraft policy. If you apply for the Overdraft Line of Credit the daily interest on overdrafts will cost you pennies. Though you should keep in mind that during the application process for the line of credit, Capital One will perform a “hard pull” and it can affect your credit score. However, this dip of 5 to 10 points is well worth the protection to avoid overdraft charges.

The rate for overdraft is currently 12.50% APR variable and Capital One offers a convenient overdraft calculator to show you how much you can expect to be charged if your account goes into the red. For example, an overdraft of $100 for 10 days will cost you just $0.31 based on its estimate.

What happens if you pass on the Overdraft Line of Credit and your account goes into the negative? There’s no mention of the repercussions on the 360 Checking website. However, customer service confirmed there’s still no fee, the transaction is simply declined. They do advise transferring funds into your account promptly, otherwise you run the risk of having your account shut down. Keep in mind that while it’s great you don’t have a fee levied against you, declining a charge could mean an important bill goes unpaid.

Additional Fees to Consider

Although 360 Checking has no monthly fee, it’s important to note that there are some other fees for extra services associated with the account. For instance, sending out overnight checks will cost you $20 and an overnight card replacement costs $25. Your first checks are free, but future checkbooks cost $5. Additionally, if a check is returned for insufficient funds you’ll incur a $9 Rejected Check Charge. And to place a stop payment on a check you’ll have to pay $25.

What Sets 360 Checking Apart From Other Online Accounts?

The ability to make cash deposits at select ATM machines is a key differentiator of this checking account. Other popular online banks like Ally, The Bank of Interest USA, EverBank and Charles Schwab don’t currently accept cash deposits.

In other areas like customer service and fees, 360 Checking has some stiff competition. The Ally Bank Interest Checking Account has no monthly fee or minimum balance requirement as well, but they offer 24/7 customer service. Capital One 360 provides customer service from 8 am to 8 pm.  Furthermore, miscellaneous fees for checkbooks, stop payments and expedited delivery services are higher with 360 Checking than Ally Interest Checking.

How does the Capital One 360 Stack Up With Interest?

This account is decent for earning interest if you can’t put more than $100 into it initially. If you have a little bit more money to deposit, there are other options that will earn you more interest.

For instance, the Bank 5 Connect High-Interest Checking Account currently offers APY of 0.76% for balances over $100 at opening. In order for you to make that type of interest with a 360 Checking account you need to maintain a balance over $50,000.

Just keep in mind that you shouldn’t be hoarding tons of cashing in your checking account. It’s much better to keep high amounts of cash in a savings account, which offers better fraud protection.

A Good Deal if You Value Convenience

Overall Capital 360 checking may not be your first choice if your primary goal is to find a checking account with the highest interest. But it should be at the top of your list if you value conveniences like easy access to your money at thousands of ATMs for free, the option to deposit cash, the ease of bank transfers and no overdraft fees.

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Advertiser Disclosure: The products that appear on this site may be from companies from which MagnifyMoney receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). MagnifyMoney does not include all financial institutions or all products offered available in the marketplace.