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Prosper review

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Take advantage of a transparent application process and no hidden fees.

finder.com’s rating: 4.0 / 5.0

★★★★★

Prosper is the pioneer of peer-to-peer online lending in the US. It has helped facilitate over $10 billion in personal loans to date. For borrowers, getting a personal loan through Prosper works similarly to other online loan providers. Individual investors review loan listings on Prosper and fund applicants who meet their criteria, and it won’t hurt your credit to apply.

$40,000

Max. Loan Amount

6.95% to 35.99%

APR

640

Min. Credit Score

Details

Product NameProsper Personal Loans
Min. Loan Amount$2,000
Max. Loan Amount$40,000
APR6.95% to 35.99%
Interest Rate TypeFixed
Min. Credit Score640
Origination Fee2.41% to 5%
Minimum Loan Term3 years
Maximum Loan Term5 years
Turnaround Time1 to 3 business days
Go to Prosper Funding LLC's website

How does Prosper work?

Prosper isn’t quite like a direct lender or a loan-connection service. It doesn’t fund your loan, and it won’t send you along to another lender’s website. Instead, you submit an application for individual investors in Prosper’s marketplace to review. If you meet one of these lender’s eligibility criteria, you may be approved and have your loan funded in a matter of days.

You can borrow between $2,000 to $40,000, and you can choose a loan term of either 3 or 5 years. Your origination fee — the amount deducted from your loan before you receive your funds — is based on Prosper’s evaluation of your financial background. This is included in your APR, which is the total interest and fees you’ll pay for your loan.

All Prosper loans are underwritten by WebBank, a Utah-chartered Industrial Bank.

Prosper Healthcare Lending

Prosper offers financing to help cover medical expenses. To be eligible for a medical loan, you must have a healthcare provider that is enrolled with Prosper and offers financing options. If your provider doesn’t, contact Prosper to find an eligible medical practice in your area.

Prosper offers two programs for different financing needs and creditworthiness:

Standard Exceptional
Loan amount $2,000 to $35,000 $20,000 to $100,000
APR 6.95% to 35.99% 5.99% to 15.59%
Recommended credit score 640 740
Speed A few days A few days

The application is fairly straightforward for both. First, check your rates by filling out a preliminary form that allows Prosper to do a soft credit pull that won’t affect your score. If you decide to finalize your application, your standard application will be reviewed by underwriting software. The exceptional application will be reviewed by a live loan officer.

What are the benefits of a personal loan through Prosper?

  • Soft credit check. When you apply for a personal loan through Prosper, it will only do a soft pull of your credit. This means your score won’t be affected until after you accept the loan.
  • No prepayment penalties. You can choose to make additional payments or pay off your loan early without paying any fees.
  • Online account management. You can track the progress of your loan by logging into the Prosper online account management system.

Drawbacks to consider

  • Origination fee. Prosper’s APR includes an origination fee of between 2.41% and 5% of your loan amount, which it deducts from your loan amount before you receive your funds.
  • APR based on credit score. Your APR will depend on your credit score. Those with excellent scores will benefit from an APR of 6.95%, while those with less-than-perfect credit may have to pay up to 35.99%.
  • Slower turnaround. Because Prosper is a peer-to-peer lender, it may take up to five business days to process and fund your loan. Direct online lenders typically only take one to two business days.

Compare more personal loan options

Updated November 17th, 2019
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5.95% to 35.99%
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With over 80 years of lending experience, this credit union offers personal loans for a variety of expenses.
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No fees. Multiple member perks such as community events and career coaching.

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What do borrowers say about Prosper?

Prosper has been accredited by the Better Business Bureau (BBB) since 2012. As of October 2019, it has an A+ rating. However, over 50 customers have given it an average two out of five stars — and over 100 customers have filed complaints.

It does similarly on Trustpilot, only scoring a 1.7 out of 5 based on just over 50 reviews. Many customers were upset about the poor quality of customer service or were frustrated about the application or repayment process. Some were also annoyed that they were rejected after receiving a preapproval letter in the mail.

But not all had bad experiences. Many were happy with how quick and painless the application process was. And a couple mentioned that Prosper was key to becoming debt free.

Is Prosper legit?

Yes. Prosper’s loans are legit and are underwritten by WebBank, member FDIC. It stores all its borrowers’ sensitive personal and financial information in highly secure state-of-the-art data centers that make use of the latest in web filtering, anti-spam, antivirus, VPN and firewall technologies. The website makes use of automatic session timeouts to minimize the risk of unauthorized access to your account, and you can use TRUSTe’s Dispute Resolution System to submit feedback or questions regarding Prosper’s privacy policy.

What eligibility criteria will I need to meet?

To apply, you have to meet the following eligibility criteria:

  • Credit score of at least 640 (Prosper uses TransUnion to obtain credit scores)
  • Active bank account
  • Regular source of income
  • Debt‐to‐income ratio below 50%
  • No bankruptcies filed within the last 12 months
  • Fewer than 7 credit bureau inquiries within the last 6 months
  • Minimum of 3 open accounts reported on your credit report

Residents of Iowa, North Dakota or West Virginia are not eligible to apply.

How to apply

You can apply for a personal loan through Prosper by clicking the Go to Site button on this page to be directed to Prosper’s website. The application is completely transparent, and you can check your rate with a simple one-page form.

Completing the application requires you to provide the following information:
  • Your name, home address and email address
  • Your date of birth and Social Security number
  • A valid form of ID like a driver’s license or a passport
  • Your employment status, employer’s name and employer’s contact details
  • Details about your income
Go to Prosper Funding LLC's site

I got the loan. Now what?

Once you have a loan with Prosper, note your due date and repayment terms. While you won’t have to pay a fee if you decide to make extra payments, Prosper doesn’t offer flexible payment options: You can’t adjust your payment schedule if something comes up. And if you’re late on a payment, Prosper charges a late fee of $15 or 5% of the amount due. There is also an insufficient funds fee of $15 if there isn’t enough money in your bank account to make your schedule repayment.

What can a personal loan through Prosper be used for?

Prosper personal loans are unsecured, so provided you’re using it for a legal purpose, you can apply your funds to just about any expense, including:

  • Debt consolidation. Take out a loan to pay off your personal loan and credit card debt, potentially with more favorable rates and terms to help you save on interest or make repayments more affordable.
  • Small business needs. Small business owners struggling to qualify for a business loan — especially startups — can cover those costs with a personal loan from Prosper.
  • Home improvement. You can use funds from a prosper personal loan for a variety of home improvement projects including repairs, remodeling, adding new furniture or buying new appliances.
  • Special occasion. Instead of financing those big life moments with a credit card, you may be able to score lower rates with a personal loan from Prosper, making it easier to afford special occasions such as milestone birthdays, weddings and vacations.

Investing in loans through Prosper

If you’re interested in investing, funding loans through peer-to-peer lending may be a viable option. With Prosper you can invest as little as $25 in a loan, allowing you to diversify your investments further.

When you invest with Prosper, you get to choose the loans you want to invest in. There is a clear rating system provided, which ranges from AA (low risk) to HR (higher risk). The lower risk loans will have lower returns, and vice versa.

With estimated returns of 8.04% on average, Prosper has a platform with successful investors and an easy-to-use system that puts you in control. If you’re ready to invest with Prosper, simply click “Go to Site”, head over to the “Invest” tab, and sign up. Any monthly returns you earn will be deposited directly into your account.

Bottom line

Although you’ll need to meet more stringent eligibility criteria in order to qualify, you can look forward to lower rates and decently high loan amounts from Prosper’s investors. If you don’t meet the base criteria or want to compare more lenders, you can check out other personal loan options or compare lenders like Prosper before applying.

Frequently asked questions

Important information

For example, a three-year $10,000 loan with a Prosper Rating of AA would have an interest rate of 5.31% and a 2.41% origination fee for an annual percentage rate (APR) of 6.95% APR. You would receive $9,759 and make 36 scheduled monthly payments of $301.10. A five-year $10,000 loan with a Prosper Rating of A would have an interest rate of 8.39% and a 5.00% origination fee with a 10.59% APR. You would receive $9,500 and make 60 scheduled monthly payments of $204.64. Origination fees vary between 2.41%-5%. APRs through Prosper range from 6.95% (AA) to 35.99% (HR) for first-time borrowers, with the lowest rates for the most creditworthy borrowers. Eligibility for loans up to $40,000 depends on the information provided by the applicant in the application form. Eligibility is not guaranteed, and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. Refer to Borrower Registration Agreement for details and all terms and conditions. All loans made by WebBank, member FDIC.

Personal loan ratings

★★★★★ — Excellent

★★★★★ — Good

★★★★★ — Average

★★★★★ — Subpar

★★★★★ — Poor

We analyze top personal loan providers and rate them one to five stars based on factors that are most important to you. These factors include: rates and fees, customer reviews, loan amounts, loan processing and borrower experience.

Read the full methodology of how we rate personal loan providers.

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6 Comments

  1. Default Gravatar
    Libby
    November 21, 2018

    I have been approved. They are telling me that they would deposit money in my account. I would have to send a Walmart voucher back how does that work?

    When they deposit money in my account what ever amount. They said I would have to seen a voucher back. Do I use the money they deposit in my account

    • AvatarStaff
      nikkiangco
      November 30, 2018

      Hi Libby,

      Thanks for getting in touch! It’s great to hear that you’ve been approved. Given this, they will deposit the money into an approved bank account and you are able to gain access to the money. As per our page, none of the requirements of Prosper’s requirements needs a Walmart Voucher. I would suggest calling Prosper to confirm this. Hope this clarifies!

      Best,
      Nikki

  2. Default Gravatar
    ScepticalLady
    June 18, 2018

    Why does Prosper need my BANK SIGN-IN and PASSWORD?

    • AvatarStaff
      nikkiangco
      June 19, 2018

      Hi ScepticalLady,

      Thanks for visiting finder.

      Generally, applying for a loan requires you to create an account with them and that includes your username and password.

      Also, in completing the application requires you to provide the following information:

      Your name, home address and email address
      Your date of birth and tax file number
      A valid form of ID like a driver’s license or a passport
      Your employment status, employer’s name and employer’s contact details
      Details about your income

      It is also imperative that you check your credit score as an application to any lenders will appear in your credit file.

      Hope this clarifies.

      Regards,
      Nikki

  3. Default Gravatar
    Lubna
    May 28, 2018

    Do you accept co signers?

    • Default Gravatar
      joelmarcelo
      May 29, 2018

      Hi Lubna,

      Thanks for leaving a question on finder.

      There is no information whether they accept cosigners to get better chances and be approved for a loan. You can ask them directly by going HERE. If you looking for lenders who accepts cosigners for personal loans, please go HERE.

      Cheers,
      Joel

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