What Are Prosper’s Requirements for Borrowers? (2024)

FAQs

What credit score do you need to get a loan from Prosper? ›

You'll need a credit score of at least 640 to be considered for a personal loan through Prosper. Keep in mind that the lowest interest rates are generally reserved for borrowers with good or excellent credit scores.

Prosper's requirements include being at least 18 years old, having enough income or assets to make the monthly payments and having a Social Security number.

Prosper is best for borrowers with fair credit scores who want to borrow a small amount of money. This is because loans start at just $2,000, and borrowers need a minimum credit score of just 600. Plus, while the company's maximum APR is high at almost 36%, the average between January and May 2021 was just 16.37%.

We verify the accuracy of all statements and information provided by borrowers and investors in connection with listings, commitments, and loans. To verify a borrower's income, we will request documents such as recent paystubs, tax returns, or bank statements.

Any natural person at least 18 years of age who is a U.S. resident in a state where loans through our marketplace are available with a U.S. bank account and a Social Security number may apply to become a borrower.

According to the Prosper website, it uses TransUnion to obtain your credit score and requires the following minimum criteria: A debt-to-income ratio below 50%.

We take identity theft and application fraud seriously. Before a loan through Prosper originates, we verify each applicant's identity and income using data from consumer reporting agencies and other anti-fraud verification databases.

Proven solid returns: The average historical return for loans originated through Prosper since is 5.7%¹. Reduced risk: Marketplace lenders make it easy to diversify across many loans to help reduce risk of loss and drive solid returns.

You can easily check the status of your application anytime by logging into your Prosper account and viewing your Account Overview page, which will list, among other things, any documents still required to complete the verification as well as the percentage of funds committed by investors.

The easiest loans to get approved for are payday loans, pawnshop loans, car title loans, and personal loans with no credit check. These types of loans offer quick funding and have minimal requirements, so they're available to people with bad credit. They're also very expensive in most cases.

How long does it take to get approved for a loan with Prosper? ›

Prosper may approve you within one day of your application for a personal loan or in less than five business days. After your application is approved and you accept the offer, it takes one to three business days to receive your funds, which Prosper will send to you by electronic bank transfer.

Origination fee — Arguably the biggest downside of Prosper, all loans start with an origination fee. The fee of 2.41% to 5% is deducted from your loan proceeds. Some borrowers get a high APR — Unless you have excellent credit, interest rates can be on the high side.

A soft pull is a credit inquiry that does not affect your credit score. For example, checking your rate for a personal loan through Prosper results in a soft inquiry that will not affect your credit score. A hard inquiry will only occur once you accept an offer and formally request a loan through Prosper.

Prosper may contact your employer to verify your employment status and income. Employment verification is a standard practice among lenders to assess a borrower's ability to repay the loan. Your employment verification can impact your loan approval, loan amount, and interest rates.

However, there are some lenders that offer loans without requiring income verification. These loans tend to fall into three main categories: loans for excellent credit, secured loans, and pawnshop loans.

Yes, Prosper does a hard inquiry when you apply for a loan. This credit report inquiry will likely drop your credit score by about 5 to 10 points, but you'll be able to get back on track with a few months of on-time payments.

Different lenders will have different requirements, and may also factor in other variables. You may be able to get a personal loan with a credit score as low as 580, or even as low as 300 with certain lenders. However, the best loans are typically reserved for people with a credit score of 640 or above.