Prosper Personal Loan Review
NMLS#1136
Read more about how we rated Prosper.Prosper is unique because it offers peer-to-peer loans. A peer-to-peer loan is funded by individual investors instead of a single lender. Peer-to-peer loans tend to be easier to qualify for, but at times, slower to fund. Here’s what you can expect with a Prosper personal loan.
- Midsize loans: Prosper offers loans with a low minimum and a high maximum borrowing amount ($2,000 to $50,000). Unless you need a very small or very big loan, Prosper can probably accommodate.
- Open to those with less-than-perfect credit: Prosper only requires a credit score of at least 560 to qualify.
- Not as competitive if you have excellent credit: Prosper’s starting annual percentage rate (APR) is 8.99%. Respectable, but you can probably find a better deal with a lender that specializes in excellent credit.
- Charges an origination fee: Prosper will keep 1.00% - 9.99% of your loan for itself as an origination fee. Origination fees tend to be higher the lower your credit score is.
- Investors might not pick up on your loan, even if Prosper approves you: Investors have 14 days to fund at least 70% of your loan after Prosper approves your loan application. If not, your listing will be cancelled. Cancelled loans aren’t the norm — most Prosper borrowers get their loans within one to five days — but this is something to keep in mind.
- Can add a second person to your loan: If you don’t meet Prosper’s eligibility requirements on your own, consider a joint loan. Adding a second person to your application can increase your chances of getting approved (or a better rate) if that person has strong credit.
- Best for fair-credit borrowers who don’t need same-day funds: With a minimum credit score of just 560, Prosper may be a good option if you have a less-than-perfect credit score. However, unlike some lenders, you can’t get your money the same day that you apply.
Prosper pros and cons
Signing a personal loan agreement is serious business. Unless you refinance your personal loan, you’ll be with your lender until you’ve paid off what you borrowed. Review Prosper’s pros and cons before making your decision.
| Pros | Cons |
|---|---|
Don’t need perfect credit Offers joint loans Can check rates on the mobile app without giving out your phone number or email address | Peer-to-peer loans can be slower to get Every loan gets an origination fee of (1.00% - 9.99%) Rates aren’t as competitive if you have excellent credit |
Put Prosper on your radar if you’re having trouble getting a loan from a traditional lender. It only requires fair credit (560+), and you can add a second person to your loan to boost your approval odds. In general, peer-to-peer loans are easier to qualify for. Instead of the risk lying on just one lender, multiple investors fund your loan.
However, peer-to-peer loans aren’t always the quickest.
With Prosper, investors have 14 days to fund at least 70% of your loan. If they don’t, your loan listing will be cancelled and you’ll have to try again. Although this isn’t typical (it usually only takes one to three days for investors to bite), this scenario is possible. Most applicants wait from one to five days from approval to funding, including the time it takes for Prosper to find investors.
Prosper requirements
To qualify for a personal loan with Prosper, you must be at least 18 years old and meet these additional requirements:
| Minimum credit score | 560 |
| Residency requirements |
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| Required documents |
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If Prosper’s loan options won’t work for your borrowing needs, be sure to shop around for a lender that helps you meet your financial goals and can offer you the best-fitting rates, terms and amounts.
How to get a loan with Prosper
Though it may take some time before you actually receive your personal loan funds from Prosper, this lender’s application process is simple and straightforward.
Prequalify
First, you’ll need to see if you prequalify for a personal loan with Prosper. During the initial application process, you’ll need to specify how much you need, the purpose of the loan and your personal information. You’ll also need to disclose whether you plan to apply as an individual or with a co-borrower.
Hard credit pull
After you find out whether you prequalify, you’ll need to choose which of Prosper’s loan offers best suit your needs. Should you decide to proceed with the loan, you’ll have to submit documentation verifying your identity as well as your income. You may also have to submit to a hard credit pull. Approval can take up to five business days.
Sign loan contract
If you’re officially approved for a Prosper personal loan, you’ll need to sign a loan agreement. From there, it can take one to three business days to receive your funds, depending on how interested investors are in your loan request.
How Prosper compares to other personal loan companies
Even if you believe Prosper aligns with what you’re looking for in a personal loan, it never hurts to shop around and compare other lenders. Here’s how Prosper stacks up against similar personal loan lenders.
| Prosper | LendingClub | Upgrade | |
|---|---|---|---|
| LendingTree’s Rating | 4.7/5 | 3.9/5 | 4.6/5 |
| Minimum credit score | 560 | 600 | 580 |
| APRs | 8.99% to 35.99% | 8.91% to 35.99% | 9.99% to 35.99% |
| Loan Amount | $2,000 to $50,000 | $1,000 to $40,000 | $1,000 to $50,000 |
| Repayment term | 24 to 60 months | 24 to 72 months | 24 to 84 months |
| Origination fee | 1.00% - 9.99% | 3.00% - 8.00% | 1.85% - 9.99% |
| Funding timeline | May receive funds within one to three business days | May receive funds as soon as 24 hours after approval | May receive funds as soon as one business day of approval |
| Bottom Line | Prosper is a solid alternative to traditional lending that offers loans for fair credit. It charges an origination fee on every loan, but it may be worth it if you can’t find another lender to approve you. | LendingClub offers a low minimum credit score requirement but tends to have a faster funding timeline. This lender may be best for borrowers with low credit who need money in a hurry. | Upgrade lets you spread out your loan payments for up to 84 months. A longer loan term can help make monthly payments more affordable, but you’ll likely pay more overall interest. |
How we rated Prosper
To come up with our star rating for personal loan companies, LendingTree considered 22 data points across three categories:
- Accessibility: We paid attention to whether lenders offered loans to nontraditional borrowers, as well as those without excellent credit scores. We also checked if lenders offered soft credit pulls, and whether they were transparent about eligibility criteria other than credit scores.
- Rates and terms: We wanted to know if lender rates, terms, amounts and fees were not only transparent, but competitive.
- Repayment experience: We based this category on lenders’ reputations, customer support availability and unique benefits.
The data points reflect every step of the process to shop and apply for, borrow and repay personal loans. A five-star lender, for instance, has flexible eligibility requirements, offers you the chance to prequalify without commitment and supports you in zeroing your balance.
The 22 data points, culled from the lenders themselves, determine the overall rating. We score lenders consistently, sometimes awarding partial points, so that you can make apples-to-apples comparisons when shopping around.
LendingTree isn’t paid for conducting these reviews, and lenders don’t have control over their content. With our reviews and ratings, we aim to give our users the objective and exhaustive information they need to make the best possible decisions.
Frequently asked questions
Yes — Prosper has provided more than $27 billion in loans to nearly 2 million borrowers, according to its website. This lender is backed by investors, including big names such as Francisco Partners and Institutional Venture Partners.
In order to qualify for a personal loan, Prosper customers must have a credit score of at least 560. If you are unable to meet this requirement, consider applying for a Prosper personal loan with a co-borrower.
Prequalifying for a personal loan through Prosper will not hurt your credit score. However, if you choose to move forward with the loan, you may have to submit to a hard credit inquiry, which can temporarily cause your credit score to go down by a few points.