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Prosper Personal Loans Review

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Since launching in 2006 as the first marketplace lending platform in the U.S., over $9 billion in loans have been funded through Prosper. 

With more than 2 million members, Prosper marketplace lending platform connects consumers who want to borrow from individuals and institutions who want to invest.
 
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Call: (866) 615-6319

How is Prosper rated?

Breakdown

4.2/5
Flexibility
4.1/5
Interest Rates
4.3/5
Discounts & Fees
4.2/5
Customer Service and Reputation

Overall Rating: 4.4 / 5 (Excellent)

Prosper is a good option for those with good or excellent credit ratings searching for an alternative to traditional loans.

Its novel approach to peer-to-peer lending, its reputation (considering the more than 2 million members), and its range of loan amounts makes it a good and flexible alternative.

Obviously, lenders want to safeguard their investment by choosing individuals with the lowest risk. This is why a good credit score and sound financial history puts you in the best position not only to get your loan approved by peers, but also to get a competitive rate. 

Additionally, the company has been featured in publications such as Consumer Reports, the Washington Post, and on NPR.

Prosper Loan Specifics

Loan Specifics - 4.5 / 5

With Prosper, borrowers can list loan requests between $2,000 and $40,000. Individual investors can then invest as little as $25 in each loan listing they select.

Through Prosper, borrowers get low, fixed rate loans with no prepayment penalties.

Investors can also earn great returns through the platform’s data-driven underwriting for personal loans.

Loan Uses

Debt/Credit Card Consolidation
Buy Home
Major Purchase
Home Improvement
Medical Expenses
Wedding
Moving/Relocation
Vacation
Start Business
Education
Taxes
Loan Minimum
$2,000
Loan Maximum
$40,000
Term Length
3-5 years
Direct Deposit
Yes
Disbursement Time
1 to 3 business days

Representative Loan Sample

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 the Borrower Registration Agreement for details and all terms and conditions. All loans made by WebBank, member FDIC.

Prosper Qualification

Qualifications & Flexibility - 5 / 5

Based on credit reports and other data, Prosper assigns each potential borrower a letter grade that essentially determines what kind of rates they can qualify for.

When it comes to qualification, Prosper's standards tend to be a bit higher than most.

The average successful Prosper borrower has a credit score of over 700 and a annual income of $90,000.

Prosper prefers those who are steadily employed and have a strong credit history.
Minimum FICO Score
640
Personal Income Considered
Yes
Verify Bank Account
Yes
U.S. Citizen
Yes
Hard Credit Pull
Yes

Prosper Cost of Loan

Costs, Interest Rates, Discounts & Fees - 4.5 / 5

Prosper's APRs are more or less standard for the personal loan industry right now. Beyond their interest rate, Prosper has a origination fee of 2.4%-5%.

This is of note as many of the lenders we feature do not charge origination fees. Prosper has no prepayment penalty, and a late fee of $15 or 5%.

The origination fee is subtracted from the loan immediately, before loan proceeds are transferred to your account. If you are using your loan through Prosper to purchase something specific (like a new couch), make sure you ask for enough to cover both the couch and the closing fee. 

For example, if you have a Prosper Rating of HR and take a loan for $5000.00, you will be charged a $247.50 closing fee.

You will then receive $4752.50 in cash deposited directly into your bank account.
APR Range
6.95% - 35.99%
Origination Fee
2.4%-5%
Missed Payment Penalty
Greater of $15 or 5% of the payment amount

Prosper Reputation

Customer Service and Reputation - 4.5 / 5

Prosper is a BBB accredited business with an A+ rating. Although the company's Trustpilot score is 6.0 (average), the majority of reviews (82%) are positive.

Negative criticism seems to mainly center around those who were not approved for loans.
Type of Institution
Peer to Peer
Year Founded
2005
BBB Rating
A+
Number of BBB Positive Reviews
12
Number of BBB Negative Reviews
31
Trust Pilot Rating
6.0 out of 5
Date Collected
2018-03-09
Headquarters Address
221 Main Street 3rd Floor, San Francisco, CA, 94105
Homepage URL
https://www.prosper.com

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Customer Comments & Reviews

Loading Reviews ...
James R
10/3/2018
Avoid at all costs very deceitful company. the month prior to my last payment i had a balance of $665. it was set to auto pay on the due date. i get an email from them and happened to log on to website and low and behold they increased my balance to $909. i called them for an explanation and get a run around.

Our Partner
  • Loan Amount: $2,000 - $40,000
  • APR: 6.95% to 35.99%
  • Loan Term: 36 to 60 months
  • Save money with no pre-payment penalties.
  • 640-740 credit score is ideal
  • Your money goes straight to your bank account via direct deposit.

Sample loan: a four-year $12,000 loan with an interest rate of 15.49% and an APR of 18.34% will require an estimated monthly payment of $336.96 and a total cost of $16,173.94.

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