Keep yourself safe while seeking financing.
If you’re looking for a personal loan, chances are you need the funds for something important. You could be consolidating your debt, improving your home, buying a car or even getting ready for a special occasion. But your security is the last thing you want at risk when you’re looking to fund a big purchase.
Prosper is a trustworthy provider that takes your borrowing and your safety seriously. With a simple online application, the ability to get your rates without affecting your credit score and funds delivered directly to your bank account, Prosper makes getting a loan an easy process.
You could borrow up to $35,000 for a variety of purposes, with rates from 5.99%–35.99%%.
- Recommended Credit Score: 640 or higher
- Minimum Loan Amount: $2,000
- Maximum Loan Amount: $35,000
- Loan Term: 3 or 5 years
- Turnaround Time: 1-3 business days
- Simple online application process
- No prepayment penalties
Is Prosper legit?
Yes. Prosper is a legitimate peer-to-peer lending platform that has been around since 2006. Though you may be familiar with loan-connection services and direct lenders, Prosper is a little different. It’s a peer-to-peer lending platform that connects borrowers with other people (or peers) who want to invest in their loans.
Borrowers post listings in the Prosper marketplace to request loans. Investors can then choose to invest in any of these listings. All loans are underwritten by WebBank, a Utah-chartered Industrial Bank. Origination fees are capped based on a loan’s Prosper Rating and terms. The Prosper Rating is an evaluation of the risk associated with the loan.
Outside of origination fees, there is a 15-day grace period before you’re charged any late fees. Late fees are assessed at 5.00% of the unpaid installment or $15, whichever is more. Failed payments also come with a fee of $15. Loans through Prosper are currently unavailable to residents of Iowa, North Dakota or West Virginia.
What makes Prosper unique?
Prosper offers the following benefits to its borrowers:
- Loan types to fit your needs. There are many types of loans available through Prosper including debt consolidation, home improvement, auto and vehicle, baby and adoption, small business and special occasion loans.
- Check rates without hurting your credit. Get your loan rates with Prosper in minutes without worrying about affecting your credit score.
- Get the amount you need. Borrow any amount from $2,000 to $35,000, depending on your qualifications and needs.
- No penalties for additional payments. Make early repayments without facing prepayment penalties or fees. This allows you to pay off your debt faster and saves you money in interest you would have paid.
What to look out for
As with any financial product, there are a few areas you’ll want to consider before applying with Prosper:
- Origination and closing fees. Loan origination fees range from 1.00% to 5.00%, depending on your Prosper Rating and loan term.
- Not all states served. If you live in Iowa, North Dakota or West Virginia, you’ll need to look elsewhere for a loan.
- Late and returned payment fees. If you take on a loan from Prosper and end up unable to make a payment, you will be charged a fee after a 15-day grace period. A late payment fee is the greater of $15 or 5.00% of the unpaid installment amount. A failed payment attracts a $15 fee as well.
Is applying for a personal loan through Prosper safe?
Prosper works hard to keep your data safe. Loans are underwritten by WebBank, which is a member of the FDIC. On top of that, Prosper is rated A+ with the Better Business Bureau and is an equal housing lender.
When applying with Prosper, your information is safeguarded through Norton Secured services. Prosper also allows customers to use TRUSTe’s Dispute Resolution System to submit feedback or questions regarding its privacy practices.
What else do I need to know?
Prosper is not a bank. When you get a loan through Prosper, you’re funded by one of your peers. That said, the loans are FDIC insured. If you’re an investor, however, the notes are not FDIC insured and may lose value.
You should also know that while you can get your rates without affecting your credit at first, there will be a hard credit check down the line when you complete the actual loan application.
It isn’t an easy decision when it comes to taking out a personal loan. If you’re looking for debt consolidation and you’ve got a good credit history, Prosper could be an option that fits your needs.
As with any loan product, it’s important to compare your options before making a decision. Luckily with Prosper you can check your rates without affecting your credit score, allowing you to get a solid number to compare against.
It’s important not to take out a loan you can’t afford to repay. Even if you qualify, there are serious financial consequences to signing onto a loan that you’re unable to repay. Make sure your next big step doesn’t send you a few paces backward. You can talk to an expert or even a trusted friend or family member before you make your decision.