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Prosper Personal Loans Review: Peer-to-Peer Borrowing Made Easy

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A fixed-rate installment loan from Prosper can provide the money you need for a large project, while letting you repay the loan with manageable monthly payments. Unlike other lenders, Prosper uses a peer-to-peer system, but the process is much the same. You'll complete the application process with Prosper online and have the money deposited right into your bank account just like you would elsewhere.

Apply

on Prosper's website

Recommended FICO® Score*
Good - Exceptional

Est. APR

7.95 - 35.99%

Term

36

Amount

Available loan amounts: $2,000 to $40,000

Est. monthly payment: $61 to $1,720

Grace period: 0 days

Application fee: $0

Loan Details
  • 640 minimum FICO® Score
  • More than $16 billion loans funded
  • Consolidate debt, finance a home improvement project, or pay off medical expenses
  • 9 out of 10 customers would recommend Prosper to friends or family**
  • Co-borrower option available. Applying with a co-borrower could help improve your rates.
  • Get your money in as few as 3 days - your monthly payment stays the same
Disclosure
ProsCons
Completely online processHas an origination fee
Can apply with a cosigner High maximum interest rate
Clear qualification requirementsNot available in all states
Prosper Customer Service

866-615-6319

221 Main Street, Suite 300

San Francisco, CA 94105

Experian Review

Prosper is a different kind of online personal loan company in that it doesn't directly fund loans. Instead, it acts as a marketplace that connects borrowers with investors and collects a fee for its services. While it may sound like a complicated arrangement, the borrowing process will be essentially the same as what you'd experience with other online-only lenders.

A Fixed Interest Loan With Convenient Payment Terms

Prosper offers unsecured personal loans with a fixed interest rate and either 36- or 60-month repayment terms. Prosper also offers home equity lines of credit (HELOCs) to residents of several states and special medical financing through specific healthcare providers.

The combination of a long repayment term and fixed interest rates means you may be able to lock in an affordable monthly payment on a major purchase, but this is a good deal only if the interest rate you get from Prosper is lower than what you can get on a credit card.

Borrowers who qualify for a good rate may find Prosper loans are also a good option for home or vehicle repairs. And, unlike some lenders, Prosper doesn't restrict you from using the loan for business purposes—although you'll be personally responsible for repaying the debt.

Using a Prosper loan to consolidate credit card debt could also be a smart idea, as it can save you money by allowing you to repay the debt at a lower interest rate.

How to Apply and Qualify for Prosper Personal Loans

You can apply for a loan through Prosper online or over the phone.

The initial step is to check your rates, which you can do with a soft credit inquiry that won't impact your credit scores. You'll be asked to share how much you want to borrow, the loan's purpose, and your personal and contact information; you'll also be asked to create an account.

But before you get started, check to see if you meet the minimum requirements for qualification. If you worry about qualifying or want to try for a lower interest rate, you may have a friend or family member who's creditworthy cosign your loan—Prosper allows joint application from "co-borrowers," but they must be submitted online.

Minimum Eligibility Requirements

To be considered for a Prosper personal loan, you must:

  • Be 18 years or older
  • Be a U.S. resident who doesn't live in Iowa or West Virginia
  • Have a valid U.S. bank account and a Social Security number

You'll also need to meet the minimum credit underwriting requirements, which Prosper can determine by reviewing your credit report and information from your application. These include:

  • Minimum FICO® Score of 640
  • Fewer than five hard credit inquiries during the last six months (doesn't include multiple inquiries for the same type of loan that are "deduplicated")
  • Three open accounts in your credit report
  • An annual income above $0
  • A debt-to-income ratio of 50% or lower
  • No bankruptcy filings in the past 12 months

If you're applying with a cosigner, the cosigner must meet the same eligibility requirements and have a FICO® Score of at least 600, one open account in their credit report and no declared bankruptcies in the past 12 months. Your combined income and debt will be considered for the 50% debt-to-income ratio requirement.

Verification and Funding

If you meet the requirements and prequalify, you can choose the loan option with the term that you prefer. Your loan will also have an origination fee that depends on your Prosper rating and the term you choose. You'll be assigned a Prosper rating based on your traditional credit scores as well as an internal scoring model the company developed. To qualify for an origination fee lower than 5%, you may need to have the top Prosper rating of AA.

Once you choose a loan option, Prosper may take up to five business days to review your application. During this time, the company may call your bank or employer to verify some of the information you provided. It may also ask you to submit documents to verify your information. These could include a copy of a government-issued ID and recent paystubs, tax returns or bank statements.

At the same time, your loan request will get added to the Prosper marketplace, where investors can commit to funding your loan. Investors have 14 days to fund at least 70% of your loan request or your application will be denied, but generally loans are fully funded within three business days.

Once the review is complete and your loan is successfully funded, your loan (minus the origination fee) will be sent to your bank account. It could take one to three business days for the funds to become available.

How Does Paying Off a Prosper Personal Loan Work?

Although Prosper doesn't fund your loan directly, it will service the loan and pass your payments on to the funders. You can make your monthly payments in a variety of ways:

  • Sign up to automatically pay with a bank account
  • Make a payment online
  • Make a payment over the phone
  • Mail a check, money order or cashier's check (but be aware these methods incur a 5%, $5 maximum, fee)

If you have a joint account, you'll need to make the payments from your bank account unless you're an authorized user on your co-borrower's bank account.

You can change your payment due date by contacting customer service.

If you're having trouble affording a payment, reach out to Prosper's customer service representatives right away to discuss your options. You might have to pay a late fee once you're 15 days past due, and Prosper may report your late payment to the credit bureaus once you're 30 days past due.

If you want to pay off your loan early, you can do so without paying a prepayment penalty.

Additional Info*

Loan amount: $2,000 - $40,000Origination fee: 2.4% - 5%
Estimated APR: 7.95% to 35.99% (fixed)Late fee: Greater of $15 or 5% of the past-due amount
Loan terms: 36 or 60 monthsPrepayment fee: No
Funds received: 1 - 3 business days after loan is processed

Personal Loan Calculator

The information provided is for educational purposes only and should not be construed as financial advice. Experian cannot guarantee the accuracy of the results provided. Your lender may charge other fees which have not been factored in this calculation. These results, based on the information provided by you, represent an estimate and you should consult your own financial advisor regarding your particular needs.

Is a Prosper Loan Right for You?

While Prosper's marketplace arrangement means the behind-the-scenes funding works a little differently from loans offered by banks, borrowers experience a similar application, funding and repayment process. A loan from Prosper could be the right option if you can qualify for the money you need with a reasonable rate. It's also a lender that allows joint applications, which can help you secure a better rate over a lender that doesn't.

Before applying, it's wise to get prequalified with a soft credit check from other lenders and compare several offers.