Prosper Personal Loans Review 2023 (2024)

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Who is Prosper Best For?

Prosper is best for borrowers with solid credit scores who would like to add a co-borrower to their loan application. Not all lenders allow co-borrowers, and Prosper is a solid option for those who need one. Additionally, borrowers who don't need their money as quickly may be ok with the lender's funding speed — which can sometimes be slower than other comparable lenders.

Compare Personal Loan Rates

Prosper Details

Prosper loan amounts range from $2,000 to $50,000, and the company offers loans to residents of all 50 states and Washington, DC. You'll need a minimum credit score of 640 to qualify for a Prosper personal loan. Keep in mind, the higher your credit score, the better APR you are likely to receive.

You will receive an APR between 6.99% to 35.99% with Prosper, depending on your creditworthiness and ability to repay the loan, among other factors. You can apply with a co-borrower and potentially be eligible for a lower rate if their credit score is in better shape than yours.

You can take out a loan for either three or five years.Most loans from Prosper are approved within one day, and depending on your bank, it may take one to three business days to receive funds in your bank account.

You may pay multiple kinds of fees with a Prosper loan, including an origination fee, a check payment fee, a late fee, and an insufficient funds fee. That said, you don't have to pay a prepayment fee if you pay off your loan early.

Prosper Personal Loan Pros and Cons

How to apply for Prosper

1.Decide how much you want to borrow.Choose your desired loan amount, as well as your loan's purpose. You'll also enter your name, Social Security number, and income history. You'll get an estimated monthly payment and APR range.

2.Formally send in an application and await approval. When submitting a formal application, you may need to send in proof of income, like a W-2, tax returns, or other financial documents.

3.Wait for an investor to fund your loan. For you to get your money, a Prosper investor must choose to fund your loan. Prosper is a peer-to-peer lending company that connects borrowers and investors. Per the company's website, investors usually will agree to offer funding before the approval process is completed (in three days or less). But they have up to two weeks to invest in your loans. If your loan does not garner at least 70% funding after 14 days, then the company will deny your application.

4.Make a plan to repay your loan. Work your monthly payments into your budget, and make sure you have the financial standing to pay back your debts.

Prosper Frequently Asked Questions

Prosper Competitors

*While Avant does not charge an origination fee, it does charge an administration fee of up to 4.75%.

Prosper vs. LendingClub

Both Prosper and LendingClub will charge you an origination fee. Prosper's origination fee varies between 2.4% to 5%, depending on your financial situation of your total loan amount, while you'll pay a fee of 1% to 6% with LendingClub. This fee will be included in your overall APR and will be deducted from your loan proceeds.

You may get your funds marginally faster with Prosper than LendingClub. Prosper will often take between one to three days to send you your money, while LendingClub may take between two to four business days. However, keep in mind that Prosper will not send you any money until they have an investor to back your loan.

Prosper has a minimum credit score requirement of 640 to qualify for a loan, while LendingClub's requirement is unspecified. If your credit score is below 640, you might decide to add a co-borrower with Prosper or pivot to LendingClub.

Prosper vs. Avant

Prosper has a minimum credit score requirement of 640, while most of Avant's customers have a credit score between 600 and 700. Both companies offer loans to people with fair credit, but if your score is on the lower end of the "fair" threshold, you may have better luck with Avant.

Prosper doesn't have a mobile app for borrowers, while Avant does. So if you want to manage your personal loans on the go, you might consider choosing Avant.

How we rated Prosper

We rate all personal loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. They are:

• Interest rate (20% of rating)
• Fees (20% of rating)
• Term lengths and loan amounts (15% of rating)
• Funding speed (15% of rating)
• Borrower accessibility (15% of rating)
• Customer support (7.5% of rating)
• Ethics (7.5% of rating)

Each category's weighting is based on its importance to your borrowing experience. Rates and fees have the most direct impact on the overall cost of your loan, so we weigh those the most heavily. Customer support and ethics are still very important parts of the borrowing experience, but do not directly tie to a personal loan's terms, so they have less of an impact on the overall rating.

See more on how we rate personal loans >>