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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 for $ 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 »
Loan amounts and interest rates
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 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, Avant’s APR range is 9.95% to 35.99% and LendingClub’s is 7.04% 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.
Advantages and disadvantages
How Prosper Works
Prosper provides unsecured personal loans through WebBank (FDIC member). You don’t have to post collateral, like a house or a car, to get an unsecured personal loan. You can use a personal loan for various purposes.
You can take out a loan for three or five years. 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 service, call Monday through Friday, 9:00 a.m. to 8:00 p.m. ET, or Saturday, 9:00 a.m. to 5:30 p.m. ET. You can also send an email or paper mail.
There are a variety of reasons why you can take out a personal loan from Prosper, including debt consolidation, home improvement, or medical or dental bills. You cannot use a Prosper personal loan for educational expenses, such as tuition or accommodation and board 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 exceeding 50%
- Have at least three open transactions reported on your credit report
- Not having filed for bankruptcy in the past 12 months
What credit score do you need?
You will need a minimum credit score of 640 to be eligible for a Prosper personal loan. Keep in mind that the higher your credit score, the more likely you are to receive an APR.
You can find your free credit report on annualcreditreport.com from any of the three major credit bureaus each week until April 20, 2022. Although this report does not give you your credit score, it will show you information. on your credit and payment history. , which lenders use to decide whether or not to give you a loan. Examining your credit report can help you figure out what you need to improve.
You can find your score free of charge on your credit card statement or online account. You can also pay it with a credit reporting agency.
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’ve accepted an offer and officially applied for a loan from Prosper, the company will do a serious credit investigation, which will likely impact your credit score. A thorough investigation gives the lender a full view of your credit history, but can adversely affect your credit score as a result.
Is Prosper trustworthy?
Prosper is a Better Business Bureau accredited company and is rated A + by the BBB, a non-profit organization focused on consumer protection and trust. The BBB assesses businesses by measuring business 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 SEC accused Prosper of miscalculating returns and misleading 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.
How Prosper Stacks Up
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%.
Both Prosper and LendingClub 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 has a minimum credit score requirement of 640, while most Avant customers have a credit score of between 600 and 700. Both companies offer loans to people with fair credit, but if your score falls. is at 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.