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5.99% To 18.53%* APR
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Prosper Personal Loan Review
Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been previewed, commissioned or otherwise endorsed by any of our network partners.
Written By
Updated on Tuesday, July 16, 2019
What is Prosper?
Prosper is a peer-to-peer loan marketplace based in San Francisco. The company matches borrowers with investors willing to fund fixed-rate loans. Prosper’s website is more like a marketplace than a traditional financial institution’s website, and loan funds are originated through Utah-based WebBank.
Since 2005, Prosper has facilitated more than $15 billion in loans to more than 930,000 people. This review covers how Prosper compares with traditional lenders.
Prosper personal loan highlights
- Peer-to-peer lending: If you want to work outside of a conventional bank, Prosper’s online marketplace is a good alternative.
- Average credit requirement: The average FICO score of Prosper borrowers is 710, though their minimum credit score is 640.
- No prepayment penalties: There is no penalty for paying your loan off before the end of your term.
- Funding is slower: Because you have to wait on investors to commit funds, it may take up to 14 days before your loan is originated.
APR
7.95%
To
35.99%
Credit Req.
640
Minimum Credit Score
Origination Fee
2.41% - 5.00%
Prosper is a peer-to-peer lending platform that offers a quick and convenient way to get personal loans with fixed and low interest rates. ... Read More
*For example, a three-year $10,000 personal loan would have an interest rate of 11.74% and a 5.00% origination fee for an annual percentage rate (APR) of 15.34% APR. You would receive $9,500 and make 36 scheduled monthly payments of $330.90. A five-year $10,000 personal loan would have an interest rate of 11.99% and a 5.00% origination fee with a 14.27% APR. You would receive $9,500 and make 60 scheduled monthly payments of $222.39. Origination fees vary between 2.41%-5%. Personal loan APRs through Prosper range from 7.95% to 35.99%, with the lowest rates for the most creditworthy borrowers. Eligibility for personal loans up to $40,000 depends on the information provided by the applicant in the application form. Eligibility for personal loans is not guaranteed, and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. Refer to Borrower Registration Agreement for details and all terms and conditions. All personal loans made by WebBank, Member FDIC.
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Eligibility requirements
- Minimum credit score:640
- Minimum credit history: Borrowers must have at least three open trades on their credit reports; fewer than five credit inquiries over the last six months; and no filed bankruptcies within the last year.
- Maximum debt-to-income ratio: A borrower’s DTI must be below 50%.
In addition, borrowers must:
- Be 18 years of age
- Have a bank account and a Social Security number
- Report an income greater than $0 and debt-to-income ratio of less than 50%
Prosper is not available to borrowers in Iowa or West Virginia.
Applying for a personal loan from Prosper
To apply for a loan through Prosper, start by filling out their online form to check your rates, which will trigger a Soft Pull on your credit — this does not impact your score. You’ll have to provide some personal information, including your physical address, birthdate, email, annual income, monthly housing cost and employment status. You can also apply via phone at 877-611-8801.
Your loan offer is based on your Prosper Rating, a proprietary score assigned to you when you apply. This score indicates the level of risk you pose to lenders and is intended to create consistency in the evaluation and approval process. An AA rating indicates the lowest estimated annual loss (up to 1.99%), while an HR rating represents the highest (15% or more).
If you choose to accept the offer you receive, you can submit documents for verification via email to [email protected], or upload them within your Prosper account; the latter is recommended. Log in to check the status of your documents, application and the percentage of funding you’ve received. Once you accept an offer and request funding, Prosper will perform a hard inquiry on your credit.
Your loan will be listed for up to 14 days, during which investors commit funds, and Prosper completes the underwriting and verification process. The latter usually takes seven business days or less.
Once your loan application has been approved and your listing is funded, you can expect to see your money deposited in your bank account within 1 to 3 business days. However, if your loan is not funded after 14 days, your listing will be canceled and you’ll need to create a new one.
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Who’s the best fit for a personal loan through Prosper
If you have average credit, Prosper may be a good fit for you. However, you’re more likely to qualify for a better rate with a higher score — APRs at Prosper go up to 35.99%, which is higher than with lenders with similar credit requirements.
Prosper is also a good option for those who want to reduce their monthly payments and pay down their loans over a longer period of time. Terms are set at 36 or 60 months — and if your financial situation improves and you are able to pay more quickly, there are no penalties to do so.
Checking rates at Prosper doesn’t impact your credit, so there’s no harm in gathering this information and comparing it with competitors.
Prosper consumer reviews
Prosper has an A+ rating with the Better Business Bureau. On LendingTree, our parent company, customer reviews are generally positive, with a rating of 4.65 out of 5 stars on LendingTree.
Reviewers repeatedly praise the simple and efficient process of applying for a loan with Prosper, and say the company provides excellent customer service. One reviewer summed up the sentiments of most: “The application was quick and easy and I had the cash within days,” said Mark from Slippery Rock, Pennsylvania, adding that he was “very pleased with the ease of it all.”
Of those who left less-than-positive reviews, many reports primarily complained about the company’s high interest rates and fees.
Prosper FAQ
Propser is a peer-to-peer lending marketplace, which means it matches borrowers with investors. Borrowers can apply for a fixed-rate unsecured loan. Loan terms are for 36 or 60 months. You can get a loan for between $2,000 and $40,000.
Prosper rates each applicant and assigns you a proprietary score that indicates the level of risk you may pose to investors. The score is based on information you provide, including your credit score, and determines if you’ll be approved for a loan and, if so, the terms of that loan.
Your loan funds can be used for almost any purpose, including consolidating existing debt, paying for medical expenses, buying a vehicle and financing home-improvement projects.
Once you submit your application, the loan review process may take up to 14 days, though it’s usually completed in less than 7 days. Once your loan is approved, it can take 1 to 3 days to show up in your bank account, depending on your bank.
If you don’t qualify for a loan the first time you apply, you will receive notice as to why your application was rejected. You may reapply for another loan after 120 days.
If you can’t pay your bill within 15 days of the due date, your account will be considered delinquent and a late fee will be assessed. Bills that are more than 120 days overdue will be reported as “charge-offs,” which will negatively impact your credit score and prohibit you from borrowing from Prosper in the future.
Yes, if you’re able to, you may pay off your loan early with no prepayment penalty fee. You can see your pay-off amount and make additional payments by signing into your Prosper account.
Alternative personal loan options
Lending Club
APR
10.68%
To
35.89%
Credit Req.
Not specified
Terms
36 or 60
months
Origination Fee
2.00% - 6.00%
on LendingTree’s secure website
LendingClub is a great tool for borrowers that can offer competitive interest rates.... Read More
Like Prosper, LendingClub is a peer-to-peer lending platform funded by investors. The rates and terms are similar, and they won’t do a hard pull on your credit until after you’ve checked your rates and completed your application.
LendingClub is a good alternative if you don’t meet Prosper’s minimum credit score requirement — However, their minimum credit requirements are not specified. You will pay an origination fee of 2.00% - 6.00% of your loan amount.
There are no prepayment penalties. Expect to wait up to seven days to see your funds deposited. Loans aren’t available to residents of Iowa, Guam and Puerto Rico.
Upgrade
APR
7.99%
To
35.97%
Credit Req.
620
Minimum Credit Score
Terms
36 or 60
months
Origination Fee
2.90% - 8.00%
Upgrade is an online lender that offers fairly priced personal loans for a term of either 36 or 60 months.... Read More
Personal loans made through Upgrade feature APRs of 7.99%-35.97%. All personal loans have a 2.9% to 8% origination fee, which is deducted from the loan proceeds. Lowest rates require Autopay and paying off a portion of existing debt directly. For example, if you receive a $10,000 loan with a 36-month term and a 17.98% APR (which includes a 14.32% yearly interest rate and a 5% one-time origination fee), you would receive $9,500 in your account and would have a required monthly payment of $343.33. Over the life of the loan, your payments would total $12,359.97. The APR on your loan may be higher or lower and your loan offers may not have multiple term lengths available. Actual rate depends on credit score, credit usage history, loan term, and other factors. Late payments or subsequent charges and fees may increase the cost of your fixed rate loan. There is no fee or penalty for repaying a loan early. Accept your loan offer and your funds will be sent to your bank or designated account within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes the transaction. From the time of approval, funds should be available within four (4) business days. Funds sent directly to pay off your creditors may take up to 2 weeks to clear, depending on the creditor. Personal loans issued by Upgrade's lending partners. Information on Upgrade's lending partners can be found at https://www.upgrade.com/lending-partners/.
Upgrade is an online lending platform that offers similar personal loan rates, terms and fees. You can check your rates without impacting your credit — sign up for autopay and get a better rate.
Borrowers can get between $1,000 and $35,000 through Upgrade. The company claims most borrowers can expect to see their funds within four business days of approval.
Marcus by Goldman Sachs®
APR
6.99%
To
19.99%
Credit Req.
Not specified
Terms
36 to 72
months
Origination Fee
No origination fee
Marcus by Goldman Sachs® offers personal loans for up to $40,000 for debt consolidation and credit consolidation. ... Read More
Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions.
Marcus by Goldman Sachs® offers a no-fee personal loan. Rates are also slightly more favorable than those offered through Prosper. Terms are for 36 to 72 months, which gives you more flexibility to pay over time.
