Prosper Personal Loans
Founded in 2005 as the first peer-to-peer lending market in the U.S., Prosper has indeed prospered by facilitating nearly $15 billion in loans since their inception. The company has been backed by top investors such as NEXT Fund, Sequoia Capital, and Francisco Partners, and provides fixed-rate personal loans for borrowers as well as the option to earn returns by investing in loans.
Prosper Loan Types and Terms
Borrowers can take out one of these funded personal loans ranging from $2,000 – $40,000 for virtually any purpose, whether it’s debt consolidation, an upcoming vacation, medical bills, or something else. All you have to do is select a personal loan amount, answer a few questions, and get your rates. The process is easy, fast, and won’t harm your credit score.
|Loan types||Personal Loans|
|Loan amount||$2,000 – $40,000|
|Repayment terms||36 or 60 months|
|APR||6.95% to 35.99%|
|Minimum credit score||640|
|Lender type||Marketplace lender|
|Good for:||Borrowers with good credit, stable income|
Who Prosper is Good For?
- Good credit and credit history
- Stable income
While you can certainly obtain a fixed APR as low as 6.95%, chances are it will be much higher unless you have a high income and good credit, based on reviews. Additionally, Prosper has a few requirements necessary to qualify for any loans, such as having a debt-to-income ratio that’s less than 50%, no bankruptcies in the past year, and less than five credit bureau checks within the past six months. So basically, Prosper is looking for borrowers who are low-risk and have a solid financial profile.
Prosper Personal Loans: Pros
- It takes just a few minutes to apply and get rates.
- Their marketplace model makes it easy to compare multiple rates you qualify for.
- Rates are competitive with similar marketplace lenders.
- The preliminary application runs a soft credit check, which won’t hurt your credit score.
- No prepayment penalty fees
Prosper Personal Loans: Cons
- Their website claims it can take less than 3 days to receive funding, but their average time of funding is within 8 days, which is a bit longer than their competitors.
- The best interest rates are difficult to obtain unless you have a high credit score and good income.
How to Apply
Applying for a personal loan with Prosper and getting quick rates is easy. You’ll be required to fill out their preliminary online form which takes just a few minutes and will ask questions about yourself, such as how much you would like to borrow and for what purpose (i.e. debt consolidation, medical bills, etc.).
You’ll also be asked for some personal information, your income, and employment status. Prosper will then pull a soft credit FICO score from TransUnion, which won’t harm your credit score. After creating a password, you’ll then be presented with offers you qualify for. This will include the loan amount, your monthly payment, interest rate, and loan term in months.
Once you select an offer you’re comfortable with, you can move forward with the next application, which will ask you to verify a few more details, such as your social security number.
The average loan will be deposited in your bank account within 8 days of completing the application.
Terms & Requirements
Let’s take a look at the terms and requirements when securing a personal loan with Prosper.
- Debt-to-income ratio must fall below 50%
- Must have income greater than $0
- Borrowers cannot have any bankruptcies within the past year
- Borrowers must have less than five credit bureau checks within the past six months
- APR rates range from 6.95% to 35.99%
- A personal loan amount ranges from $2,000 to $40,000.
- Origination fees range from 2.41%-5%
- Late fee of 5% of the monthly payment or $15—whichever is greater—with a 15 day grace period
- 36 or 60 months
Privacy & Security
Prosper is a trusted financial services institution that abides by state and federal regulation for all investing and loan services in their marketplace. They’ve facilitated nearly $15 billion in loans.
Prosper protects user data through the use of physical, electronic, and operational safeguards. Their servers all come with Extended Validation and Secure Socket Layer certificates to ensure safe connections through their website.
Aside from providing their users with a borrower services number, investor services number, and email address, Prosper also provides a comprehensive help center that covers topics like what kind of fees you can expect as a borrower, what your payments options are, where to find your application status online, and a ton more useful FAQs for both borrowers and investors.
This makes it easy to find the information you need when you need it.
Prosper is a well-known lending marketplace that provides personal loans for borrowers that are quick and safe using their peer-to-peer model. This can make it convenient to compare rates all in one place without having to fill out multiple forms.
The investor side of the company allows individuals to fund the loans, offering borrowers competitive rates ranging from 6.95% to 35.99%. It should be noted, however, that based off of online reviews, it can be difficult to get approved or secure the best rates unless you have a good-to-excellent credit score and stable income.
With that said, if you’re looking to take out a personal loan and have a solid financial profile with no recent bankruptcies to your name, Prosper can be a great option. Just be sure to always read the terms of the agreement and pay attention to the APR rather than the interest rate (they include both in their offers, but APR is key since it includes fees).
Prosper Funding LLC
221 Main Street, Suite 300
San Francisco, CA 94105