Prosper is a peer-to-peer lending platform that offers loans with low and fixed interest rates in a quick and convenient way. The application process only takes but a few minutes to check loan rates and terms. Continue reading the review to find out if Prosper suits you.
Prosper does not fund your loans with their own money but evaluates their applicants and links you to investors. Once you become pre-approved for a loan, you create a loan listing that appears in Prosper’s marketplace where lenders will select loans to invest in.
Once a lender selects your listing to invest in and you get fully approved, the loan is transferred to your bank account. To be eligible for a loan with this lender, you must have a minimum credit score of 640. Apply today!
|PROMOTIONAL LINK||LOAN DETAILS||REVIEW|
Up to $35,000
3 - 6 years
5.99% - 35.99%
Up to $100,000
3 - 7 years
See Current Rates
Up to $35,000
1 - 5 years
5.32% – 36%
|Lending Club||Loan Amounts:|
Up to $40,000
3 - 5 years
6.95% - 35.89%
Up to $40,000
3 or 5 years
6.99% - 35.99%
Table of Contents
Prosper General Information
|APR||6.95% – 35.99%|
|Loan Amount||$2,000 – $40,000|
|Term Length||3 or 5 years|
|Origination Fee||2.4% – 5%|
|Unsuccessful Payment Fee||Presumably the same as late fee|
|Late Fee||$15 or 5% of amount paid|
|Minimum Gross Income||None|
|Minimum Credit Score||640|
|Additional Information||3 to 5 business days to receive funds|
|Credit History||11 years|
Pros and Cons of a Prosper Personal Loan
- You don’t need to own a home to apply.
- The application is simple and easy to follow.
- Initial credit check will not affect your credit score. However when your loan is approved, it will show up on the report.
- It takes up to 1 to 3 business days after approval.
- A personal loan from Prosper can be used towards small business, debt consolidation, home improvement, medical bills and other special occasions.
- If you have excellent credit score, your APR can be as low as 6.95%.
- You can make additional payments if you want. There are no extra fees for paying you loan ahead of time either.
- Prosper has partnered with Clarity Money to work together to improve your financial situations. This app analyzes your financial situation and works to improve it with the use of artificial intelligence, machine learning, and data science.
- You can rebuild your credit with Prosper! Prosper will report your payments to credit reporting bureaus to show them your progress.
- Unfortunately Prosper is not available in all states. Prosper is not available in Iowa or West Virginia.
- You are only limited between either a 3 year term or 5 year term.
- Before you receive your funds, you will be deducted by an origination fee of 2.4% to 5%.
- The late fee is always $15 or 5% the amount due.
Prosper Personal Loan Eligibility
There is no minimum opening annual income requirement, but your credit history must be at least two years and a 50% maximum debt-to-income ratio. According the Prosper Prospectus, applicants are required to have the following:
- Bank account and a Social Security number
- Credit score of at least 640 on the FICO 08
- No more than (7) credit inquiries in the last (6) months
- Steady source of income
- A credit-to-debt ratio below 50%
- At least (3) open credit accounts, which include credit cards, loans and other lines of credit.
- No bankruptcies filed in the last year
*For example, a three-year $10,000 loan with a Prosper Rating of AA would have an interest rate of 5.31% and a 2.41% origination fee for an annual percentage rate (APR) of 6.95% APR. You would receive $9,759 and make 36 scheduled monthly payments of $301.10. A five-year $10,000 loan with a Prosper Rating of A would have an interest rate of 8.39% and a 5.00% origination fee with a 10.59% APR. You would receive $9,500 and make 60 scheduled monthly payments of $204.64. Origination fees vary between 2.41%-5%. APRs through Prosper range from 6.95% (AA) to 35.99% (HR) for first-time borrowers, with the lowest rates for the most creditworthy borrowers. Eligibility for loans up to $40,000 depends on the information provided by the applicant in the application form. Eligibility 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 loans made by WebBank, member FDIC.
How To Apply For a Prosper Personal Loan
Prosper’s application process is more engaged compared to other online lenders. Steps as follows:
- Fill out a brief personal loan application on Prosper’s website for the desired loan amount.
- Upon submitting the form, Prosper conducts a soft pull, which will not affect your credit score. This allows the lender to give you loan options with specific interest rates, fees and loan terms.
- After reviewing your loan offers, you make a selection as to which term best suits your needs.
- Fill out a more detailed application and agree to the site’s lending terms and disclosures.
- Prosper will then put your loan up on its site for investors to fund. (your personal information will remain private)
- While your loan is in the marketplace for investors to oversee, Prosper will conduct a three-stage verification check of your income, identity and other data, which may require you to provide additional documents. Your listing will indicate how much of your information still needs to be verified. The more you have verified, the more credible your listing appears to investors.
- If investors fund more than 70% of your loan, you can borrow that amount. If you don’t make it across the 70% threshold, you may set up a new listing. (Listings stay on Prosper’s marketplace for a maximum of 14 days.)
- Once your loan is fully funded and you’ve been verified, Prosper initiates a hard credit check (this will affect your credit score).
- The loan is transferred to your account.
The entire process — from application to funding — typically takes 3 to 5 days, but it can take longer depending on how quickly you provide your documents.
Prosper is a good idea for new businesses with limited business credit history. Prosper’s long history in service has given it a strong, reputable name in the online lending industry, where many startups offer similar services.
Keep in mind that their approval process is more complicated than other lenders that fund loans with their own capital rather than through individual investors. This type of loan usually serves those with good credit profiles.
Prosper is a good choice for you if you want to borrow money from a reputable source. Be sure to search around to see if you can get a better rate!
Are you interested in this personal loan from this lender? Please let us know in the comment section below on your experience! If you want to search for more options on taking out the best personal loan, check out our full list of Best Personal Loans.
(Visit Prosper for more details)
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