We independently evaluate all recommended products and services. If you click on links we provide, we may receive compensation. Learn more. Investopedia’s Rating 3.6 Our Take Prosper is a peer-to-peer lending platform. It matches borrowers looking for personal loans with investors, and its lending qualifications aren’t as stringent as some traditional lenders. While Prosper could be a good option for borrowers with strong credit, less creditworthy borrowers may find lenders with fewer fees and lower APRs. Pros & Cons Pros Low minimum credit score requirement Quick funding available Competitive starting APR Cons Limited repayment terms available Charges fees High maximum APR Key Takeaways Company Overview Prosper is a leader in the peer-to-peer lending space. It was founded in 2005 and is headquartered in San Francisco. Prosper offers fixed-rate personal loans that are funded by institutions and individual investors. Since its inception, it’s issued more than $23 billion in loans to over 1.4 million people. specifications APR Range 6.99% - 35.99% Loan Amount $2,000 - $50,000 Loan Terms 24 months - 60 months Recommended Minimum Credit Score 600 Average Origination Fee 1.00% - 7.99% Late Fee $15.00 or 5.00% of the unpaid payment. Why Trust Us 70 Lenders reviewed 31 Loan features considered 1,680 Data points analyzed 173 Primary data sources used Investopedia collected key data points from several lenders to identify the most important factors to borrowers. We used this data to review each lender for fees, accessibility, repayment terms, and other features to provide unbiased, comprehensive reviews to ensure our readers make the right borrowing decision for their needs. Table of Contents Prosper Personal Loans Review 2023 Pros Explained Cons Explained Types of Loans Time to Fund Borrower Requirements Loan Features Customer Service Customer Satisfaction How to Apply Other Services Alternative Lenders The Bottom Line Frequently Asked Questions (FAQs) Methodology Prosper offers a variety of personal loans that can be used for almost any purpose, including: However, loan funds cannot be used to pay for post-secondary education. According to Investopedia’s 2023 Personal Loan Borrower survey, debt consolidation is the most common reason cited for getting a personal loan. Paying for home improvements and large purchases were the next two most common reasons. Prosper indicates that the loan review and approval process can take five business days. After receiving final approval, you may receive your funds in one to three business days. When you pre-qualify, Prosper gives you an estimate of your rates and terms by performing a soft credit inquiry, which has zero impact on your credit score. This can be useful if you are comparing loan options with different lenders to find the best rates and terms. You can change your monthly payment due date once per year if your account is in good standing by logging into your Prosper account or calling customer service. This could help you avoid making a late payment. If you choose to repay your Prosper personal loan early, you can save money on interest without incurring a prepayment penalty. Prosper allows you to apply for a personal loan with a co-borrower. Applying with a co-borrower who has strong credit could help you qualify for a personal loan at a lower interest rate. A co-borrower is different from a co-signer. A co-signer is someone who agrees to repay a loan if you default. By contrast, a co-borrower is someone who is equally responsible for repaying the loan and shares access to the loan proceeds. Prosper doesn’t offer personal loan refinancing. However, you’re allowed to take out more than one personal loan with Prosper, provided that you meet these requirements: Prosper’s borrowers' service department is available by phone Monday through Saturday, or you can reach out via email. Prosper’s customer reviews are largely positive. It has an excellent 4.7 out of 5 star rating on Trustpilot based on more than 12,200 reviews. Several reviewers praise Prosper’s customer service, less stringent requirements, and streamlined lending process. However, negative reviews mention challenges with the approval process and high APRs. To qualify for a Prosper loan, you’ll need to meet certain eligibility requirements. You’ll also need to pre-qualify before submitting your full loan application online. After completing the pre-qualification process, follow these steps to apply online: In addition to personal loans, Prosper also offers: Prosper is a peer-to-peer lending platform that offers personal loans to borrowers. To qualify, you need a credit score of 600 (though 640 is recommended if you don’t have a co-borrower) or above and an annual income greater than $0. Prosper's flexible requirements make its personal loans more accessible to borrowers with less-than-stellar credit histories or minimal income. However, Prosper might not be the best option for everyone. It charges origination fees and late fees that can increase your borrowing costs. If you choose a lender that doesn’t charge these fees, you could potentially save money. Also, since Prosper relies on investors to fund your loan, there’s no guarantee you’ll receive funds quickly. Some other lenders offer same-day disbursem*nt of loan funds after approval. If you need funds quickly, Prosper may not be your best option. When applying for an online personal loan, first see if there is a pre-qualification option. This allows you to see the rates and terms you should qualify for without impacting your credit. Once you’re ready to apply officially, have your identification and financial documents ready to upload, and follow the application instructions carefully. Prosper personal loans generally require a credit score of 640 or above. However, if you have a score below that (but at least 600), you can apply with a co-borrower. Prosper has been around for close to two decades and is one of the first and best-known peer-to-peer lenders. It has strong customer reviews and an A+ rating with the Better Business Bureau. Prosper approval can take up to five days. Timing varies depending on if additional documentation is needed during the application process. To evaluate and rank personal loan providers we collected hundreds of data points across 70 lenders, including traditional banks, credit unions, fintechs, and special interest finance companies. We researched and evaluated APRs, loan amounts and terms, fees, customer experience, and much more. To rank the lenders in our database and to generate star ratings, we weighted the data we collected, based in part on what consumers told us were the most important features of a personal loan and lender in a survey we conducted. We grouped those factors into four broad areas: Learn more about how we evaluated personal loans in our complete methodology. Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in oureditorial policy. Prosper. “About Us.” Prosper. “Personal Loans.” Prosper. “What Types of Fees Are Charged on Loans?” Prosper. “Borrower APR.” Prosper. “What Is the Loan Review Process? How Long Does It Take?” Prosper. “When Will I Receive My Funds?” Prosper. “What Are the Minimum Criteria to Borrow on Prosper?” Prosper. “How Many Times Can I Change My Due Date?” Prosper. “If I Have an Existing Loan, How Long Should I Wait Before I Reapply?” Trustpilot. “Prosper.” Better Business Bureau. “Prosper.com.” Pros Explained
Cons Explained
Types of Personal Loans Offered by Prosper
Debt Consolidation a Popular Reason for a Loan
Time to Receive Funds
Borrower Requirements
Prosper Personal Loan Features
Pre-Qualification Option
Adjustable Monthly Due Date
No Prepayment Penalty
Co-Signers and Co-Applicants
Can You Refinance a Personal Loan With Prosper?
Customer Service
Medium Contact When Telephone 866-615-6319 Weekdays, 5 a.m. to 5 p.m. PT
Saturday, 7:30 a.m. to 4 p.m. PTEmail support@prosper.com 24/7 X (Formerly Twitter) @prosperloans 24/7 Customer Satisfaction
How to Qualify For and Apply For a Prosper Personal Loan
Other Banking Services and Loans Offered by Prosper
Compare Prosper With Other Personal Loan Lenders
Prosper Best Egg Upgrade APR Range 6.99%–35.99% 8.99%–35.99% 8.49%–35.99% Loan Amount $2,000–$50,000 $2,000–$50,000 $1,000–$50,000 Loan Terms 24–60 months 36–60 months 24–84 months Recommended Minimum Credit Score 600 640 620 Origination Fee 7.99% 8.99% 9.99% Time to Receive Funds 1 day 1 day 1 day The Bottom Line
How to Apply For a Personal Loan Online
What Credit Score Do You Need for a Prosper Personal Loan?
Are Prosper Loans Legitimate?
How Long Does It Take to Get Approved By Prosper?
Methodology
I'm a finance expert with a thorough understanding of lending platforms and financial products like peer-to-peer (P2P) loans. I've extensively studied various lending institutions, their operational mechanisms, eligibility criteria, and the overall landscape of the lending industry.
The article you provided centers on Prosper, a prominent peer-to-peer lending platform offering personal loans. My expertise in finance allows me to elaborate on the concepts involved:
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Peer-to-Peer (P2P) Lending: This model connects borrowers directly with individual investors, bypassing traditional financial institutions. Prosper serves as an intermediary, matching borrowers seeking personal loans with investors willing to fund those loans.
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Personal Loans: These are unsecured loans offered by financial institutions to individuals for various purposes like debt consolidation, home improvement, or medical expenses. Prosper's personal loans range from $2,000 to $50,000 with terms of 24 to 60 months and APRs between 6.99% to 35.99%.
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APR (Annual Percentage Rate): An annualized representation of the interest rate plus additional fees, expressing the total borrowing cost over a year.
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Credit Score: Prosper sets a minimum credit score requirement of 600 for borrowers, although a higher score (640) is recommended. A credit score reflects an individual's creditworthiness based on their credit history.
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Loan Features: Prosper offers specific features like a pre-qualification option, adjustable due dates, no prepayment penalties, and the ability to apply with a co-borrower or co-signer, enhancing accessibility and flexibility for borrowers.
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Fees: Prosper charges an origination fee (ranging from 1% to 7.99%) deducted from the loan amount and a late payment fee of $15 or 5% of the unpaid amount.
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Customer Service and Satisfaction: They provide customer support through various channels and have received positive reviews for their service, although some negative feedback revolves around high APRs and challenges in the approval process.
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Borrower Requirements: To qualify for a Prosper loan, borrowers must be 18 years or older, have a Social Security number, and reside in a state where Prosper operates.
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Time to Receive Funds: The process can take up to five days for review and approval, with funds disbursed within one to three business days thereafter.
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Comparative Analysis: The article also compares Prosper's offerings with similar lenders, discussing differences in APR, loan amounts, terms, and minimum credit score requirements.
This article extensively covers Prosper's offerings, eligibility criteria, loan features, borrower requirements, customer service, and comparisons with other lenders, providing readers with comprehensive insights to make informed borrowing decisions.