Prosper Personal Loan Review 2021


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  • Prosper personal loans charge similar rates to competitors, but have more stringent eligibility requirements.
  • You can take out a personal loan from Prosper from $ 2,000 to $ 40,000.
  • Prosper has a long list of fees that come with his personal loans, including origination fees.
  • See Insider’s Choices For The Best Personal Loans »

Prosper offers unsecured personal loans through Web banking (FDIC member). You are not required to provide any collateral, such as a house or a car, to obtain a unsecured personal loan. You can use a personal loan for various purposes.

Prosper loan amounts range from $ 2,000 to $ 40,000, and the company offers loans to residents of all 50 states and Washington, DC. You can take out a loan for three or five years.

You will receive an APR between 7.95% and 35.99% with Prosper, depending on your creditworthiness and your ability to repay the loan, among other factors. This is comparable to APR ranges from similar companies. For example, Before The APR range is 9.95% to 35.99%, and Loan Club the range is 8.05% to 35.89%.

You can apply with a co-borrower and potentially qualify for a lower rate if their credit rating is in better shape than yours.

As an alternative to the personal loan, you can also consider credit cards for people with bad creditbecause you can get a lower APR and better terms with a credit card. Determine the advantages and disadvantages of each choice will help you get the best deal possible.

Most Prosper loans are approved within one day, and depending on your bank, it may take one to three business days for the funds to be received into your bank account.

However, in order for you to get your money’s worth, a Prosper investor must choose to fund your loan. Prosper is a peer-to-peer lending company that connects borrowers and investors.

According to the company’s website, investors typically agree to offer financing before the approval process is complete (in three days or less). But they have up to two weeks to invest in your loans. If your loan does not collect at least 70% funding after 14 days, the company will reject your application.

You can pay several types of fees with a Prosper loan, including origination fees, check payment fees, late fees, and insufficient funds fees. That said, you don’t have to pay a prepayment charge if you prepay your loan.

To contact customer support. call Monday through Friday 9 a.m. to 8 p.m. ET, or Saturday 9 a.m. to 5:30 p.m. ET. You can also send an email or paper mail.

There are several reasons why you can take out a personal loan from Prosper:

You cannot use a Prosper personal loan for education costs, such as tuition or accommodation and boarding at a college, university, or vocational school.

You will need to meet the following conditions to apply:

  • Be at least 18 years old
  • Have a current or savings account
  • Have a social security number
  • Have at least a 640 credit score
  • Have less than five credit bureau inquiries (after excluding duplicate inquiries) in the past six months
  • Earn an annual income greater than $ 0
  • Have a debt to income ratio not more than 50%
  • Have at least three open transactions reported on your credit report
  • Not having filed for bankruptcy in the past 12 months

You will need a credit score closer to the upper end of “fair” to be eligible for a loan. Credit ratings between 300 and 850, and you will need a minimum credit score of 640 to qualify for a Prosper personal loan.

You can check your credit score for free at from one of the three major credit bureaus once a week during the pandemic.

Here’s how the scores break down, according to FICO:

  • Very poor: 300 to 579
  • Fair: 580 to 669
  • Good: 670 to 739
  • Very good: 740 to 799
  • Exceptional: 800 to 850

Your credit score will not be affected if you check your rates through Prosper, as the process only results in a gentle credit check.

Once you have accepted an offer and formally requested a loan from Prosper, the company will conduct a firm credit check, which will likely have an impact on your credit rating. A thorough investigation gives the lender a complete view of your credit history, but can adversely affect your credit score as a result.

Keep in mind that the higher your credit score, the more likely you are to receive an APR. If your credit score is on the lower end of the range accepted by Prosper, you may want to consider using some of these tips to increase your credit score:

  • Request and view a copy of your credit report. Look for errors on your report that can damage your score. If you find any, contact the credit bureau to discuss correcting the error.
  • Maintain low credit card balances. Maintaining a credit utilization rate (the percentage of your total credit that you use) of 30% or less will prove to lenders that you can manage your credit well.
  • Design a system to pay bills on time. Your payment history comprises a large percentage of your credit score, and lenders prefer to see stable and reliable payments in the past. Create calendar reminders or set up automatic payments so you don’t fall behind.

Prosper is a Better Business Bureau accredited company and is rated A + in reliability by the BBB. The BBB assesses reliability by measuring companies’ responses to consumer complaints, honesty in advertising, and clarity in business practices.

You are not guaranteed to have a great relationship with Prosper even if the company has an excellent BBB rating. Also, be sure to read the reviews and talk to your friends and family about their experiences with the company.

In 2019, the The SEC accused Prosper miscalculate returns and mislead investors. The SEC said exaggerated annualized net returns made investors invest more. In the settlement, Prosper paid $ 3 million.

While Prosper has an excellent BBB rating, you might want to look elsewhere if the company’s 2019 controversy turns you off.

The Pros and Cons of Prosper Personal Loans

The application is available online or over the phone, although you cannot apply for a joint loan over the phone. It can be completed in a matter of minutes. You will need basic information for the initial request, including:

  • Last name
  • Contact details, including your address, phone number and email
  • Date of Birth
  • Social Security number
  • Individual annual income
  • Any additional income you may receive
  • Income type
  • Monthly rent or mortgage payment

Prosper may ask you to upload certain financial or employment documents to confirm the details you have entered in your application. You can submit all required documents and check their status through your Prosper account. You can also email these documents, but make sure the email is from the same email address you used when you joined Prosper.

You should receive your funds within one to three business days of your request being approved.

While the rates are specific to your situation, Prosper’s interest rates match those offered by comparable lenders. Here’s how Prosper stacks up against similar companies:

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

Prosper exam vs LendingClub exam

Prosper and Loan Club will charge you origination fees. Prosper’s origination fee ranges from 2.41% to 5% of your total loan amount, while you will pay a 1% to 6% fee with LendingClub. These fees will be included in your overall APR and will be deducted from your loan proceeds.

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

Prosper has a minimum credit score requirement of 640 to be eligible for a loan, while LendingClub’s requirement is unspecified. If your credit score is below 640, you can decide to add a co-borrower with Prosper or switch to LendingClub.

Prosper exam vs Before exam

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

Prosper does not have a mobile app for borrowers, unlike Avant. So, if you want to manage your personal loans on the go, you may want to consider choosing Avant.

Ryan Wangman is a Review Officer at Personal Finance Insider and publishes reports on mortgages, refinancing, bank accounts, and bank reviews. During his past personal finance writing experience, he wrote on credit scores, financial literacy, and homeownership.

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