How a peer-to-peer pioneer and a highly rated direct lender stack up.
When it comes down to it, Prosper and Best Egg are very similar personal loan providers. Both have simple online applications in addition to comparable rates and loan amounts. Even the eligibility requirements are almost the same. Prosper might be better if you need a large loan. But if you’re looking for funding fast, Best Egg may have the edge.
Winner snapshot
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| Lower rates |
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| Fewer fees |
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| Strongest reputation |
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| Widest lending limits |
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| Quickest turnaround |
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First, am I eligible for a loan with Prosper and Best Egg?
Here are the minimum requirements for each lender:
Prosper
- Credit score of at least 640
- Not live in Iowa, North Dakota or West Virginia
- Must be a US citizen or permanent resident
- Must be over 18 years old
Best Egg
- Credit score of at least 640
- Not live in Iowa, Vermont, West Virginia, Puerto Rico or Guam
- Must be a US citizen or permanent resident
It can also be difficult for self-employed applicants to qualify for a loan from Best Egg.
An overview of Prosper and Best Egg
Here’s how the two lenders stack up in terms of time in business, number of loans funded and more:
Prosper
Founded in 2005, Prosper is one of the first peer-to-peer lenders to set up shop in the US. Since then, it’s funded over $13 billion in loans to over 852,000 borrowers. Prosper specializes in debt consolidation, though you can use your funds for any legitimate purpose.
Instead of providing the money itself, Prosper connects borrowers with investors. The application process is similar to working with a direct lender, though it can take longer for investors to approve your funds.
Best Egg
Best Egg is nearly a decade younger than Prosper, opening its doors in 2014. Since then, it’s funded over $6 billion in loans to over 420,000 customers. It’s a direct online lender that offers personal loans for almost any need, from covering moving expenses to adopting a child.
Its easy-to-use interface is what really sets Best Egg apart from the crowd, and it has the rave customer reviews and industry awards to show for it. Its customer service team also has a strong reputation.
Which offers lower interest rates and better loan terms?
Prosper
- APR range: 6.95% to 35.99%
- Loan terms: 3 or 5 years
Best Egg
- APR range: 5.99% to 29.99%
- Loan terms: 3 to 5 years
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Winner: Best Egg
Best Egg barely wins by offering rates that start and end slightly lower than Prosper. They both have the same two loan terms, however. If you want a different amount of time to make repayments, another lender might be a better choice.
Which comes with fewer fees?
Prosper
- Origination fee: 2.41% to 5%
- Late fee: $15 or 5% of the amount due, whichever is greater
- Insufficient funds fee: $15
- Check fee: $5 or 5% of the amount due, whichever is less
Best Egg
- Origination fee: 0.99% to 5.99%
- Late fee: $15
- Insufficient funds fee: $15
- Manual payment fee: $7 per payment
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Winner: Prosper
While Best Egg’s origination fees start lower, they also end higher than what you’d find with Prosper. But the real kicker is the $7 fee that Best Egg charges for each payment if you choose not to sign up for automatic payments.
Aden consolidates his credit card debt
Aden has $10,000 in credit card debt with high interest rates that are quickly adding up. He wants to take out a personal loan to pay off his creditors and have one fixed monthly repayment at a lower rate.
After researching several lenders, he’s narrowed down his options to Prosper and Best Egg. He prequalifies with both lenders and compares his options.
| Prosper | Best Egg | |
|---|---|---|
| Loan amount | $10,000 | $10,000 |
| APR | 11% | 9% |
| Origination fee | 3% | 2.5% |
| Loan term | 3 years | 3 years |
It’s a close call, but he decides to go with Best Egg. The APR and origination fee are both lower, plus he wants to work with a lender that has a fast turnaround and strong customer service team.
Which has a better reputation?
Prosper
Prosper is accredited by the Better Business Bureau (BBB) and earns an A+ rating as of November 2018. But customer reviews tell a different story. It only scores 2 out of 5 stars on the BBB site and a 4.1 out of 10 on Trustpilot.
Many customers experienced hiccups with the application or repayment process, with several calling out poor customer service. However, the few positive reviews praised its easy application and quick turnaround time.
Best Egg
Best Egg is also accredited with the BBB and earns an A+ rating as of November 2018. But unlike Prosper, it has stellar customer reviews. Nearly 1,900 BBB reviewers give it an almost perfect rating of 5 out of 5 stars. And it scores a 9.5 out of 10 based on over 1,800 reviews on Trustpilot.
Borrowers were happy with the quality of customer service and how quick and easy it was to get approved. On top of this, Best Egg’s won several awards, including being named #1 in customer satisfaction from LendingTree in 2017.
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Winner: Best Egg
Not only does Best Egg have all-around better ratings than Prosper, it’s also won awards for its stellar customer service.
How much can I borrow with each lender?
Prosper
- Minimum amount: $2,000
- Maximum amount: $40,000
Best Egg
- Minimum amount: $2,000
- Maximum amount: $35,000
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Winner: Prosper
You can borrow slightly more with Prosper than Best Egg, though it’s a close call.
Which lender can get me money faster?
Here’s how soon you can get your funds with each lender:
Prosper
- Typical turnaround time: 1 to 3 business days
Best Egg
- Typical turnaround time: 1 business day
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Winner: Best Egg
While both may be able to get you your funds within a day of approval, direct lenders like Best Egg have to jump through less hoops than a peer-to-peer lender like Prosper.
See how other top lenders compare
| SoFi vs. Best Egg | |
| SoFi vs. LendingClub | |
| Prosper vs. LendingClub vs. Upstart | See comparison |
| Upstart vs. Prosper | |
| LendingClub vs. Prosper | |
| LendingClub vs. LendingTree | |
| Best Egg vs. LendingClub | See comparison |
Bottom line
In the end, Prosper and Best Egg offer very similar personal loans. Which option is best for you depends on your priorities. Prosper offers larger loan amounts, but Best Egg has a stronger reputation. The only way to truly know how they stack up for you is to prequalify with both.
Not ready to do that yet? Check out our personal loans guide to compare even more lenders.
Frequently asked questions
Important information
Best Egg The Annual Percentage Rate (APR) is the cost of credit as a yearly rate and ranges from 5.99%-29.99%, which may include an origination fee from 0.99%–5.99% that is deducted from loan proceeds. Any origination fee on a loan term 4-years or longer will be at least 4.99%. The loan term and the APR offered will depend on your credit score, income, debt payment obligations, loan amount, credit usage history and other factors. Additionally, the APR offered is impacted by your loan term and may be higher than our lowest advertised rate. Requests for the highest loan amount may result in an APR higher than our lowest advertised rate. You need a minimum 700 FICO® score and a minimum individual annual income of $100,000 to qualify for our lowest rate. Best Egg loans are unsecured personal loans made by Cross River Bank, a New Jersey State Chartered Commercial Bank, Member FDIC. Equal Housing Lender. "Best Egg" is a trademark of Marlette Funding, LLC. All uses of "Best Egg" on this site mean and shall refer to "the Best Egg personal loan" and/or "Best Egg on behalf of Cross River Bank, as originator of the Best Egg personal loan," as applicable. Loan amounts generally range from $2,000-$35,000. Offers up to $50,000 may be available for qualified customers who receive offer codes in the mail. The minimum individual annual income needed to qualify for a loan of $50,000 is $130,000. Borrowers may hold no more than two open Best Egg loans at any given time. In order to be eligible for a second Best Egg loan, your existing Best Egg loan must have been open for at least four months. Total existing Best Egg loan balances must not exceed $50,000. All loans in MA must exceed $6,000; in NM, OH must exceed $5,000; in GA must exceed $3,000. Borrowers should refer to their loan agreement for specific terms and conditions. Your verifiable income must support your ability to repay your loan. Upon loan funding, the timing of available funds may vary depending upon your bank's policies. To help the government fight the funding of terrorism and money laundering activities, federal law requires all financial institutions to obtain, verify, and record information that identifies each person who opens an account. When you open an account, we will ask for your name, address, date of birth, and other information that will allow us to identify you.
