Rating: 9.6 / 10 (Excellent)
Disclosure: We receive advertising revenue from this partner. Learn more.
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.

How is Prosper rated?

Breakdown

10/10
Loan Specifics
10/10
Qualification
10/10
Cost of Loan
10/10
Lender Reputation

Overall Rating: 9.6 / 10 (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 - 9.7 / 10

With Prosper, borrowers can list loan requests between $2,000 and $35,000. 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
Loan Minimum
$2,000
Loan Maximum
$35,000
Term Length
3-5 years
Direct Deposit
Yes
Disbursement Time
1 to 3 business days

Representative Loan Sample

A three-year $10,000 loan with a Prosper Rating of AA would have an interest rate of 5.32% and a 1% origination fee for an APR of 5.99% APR. You would receive $9,900 and make 36 scheduled monthly payments of $302.

Prosper Qualification

Qualification - 9.5 / 10

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

Cost of Loan - 9.6 / 10

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 1%-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
5.99% - 35.99%
Origination Fee
1%-5%
Missed Payment Penalty
Greater of $15 or 5% of the payment amount

Prosper Reputation

Lender Reputation - 9.5 / 10

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 Lender
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 10
Date Collected
2018-03-09

Company Profile

Full Name
Prosper Personal Loans
Company Website
Headquarters
221 Main Street 3rd Floor, San Francisco, CA, 94105

Our Partner
9.6 / 10
  • Innovative peer-to-peer loans trusted by 250,000+ 
  • No teaser rates - 5.99% to 35.99% APR 
  • Get $2,000 to $35,000 with 3 or 5 years to pay it back
  • Answer a few questions to get your lowest eligible rates instantly.
  • You can pay it off whenever without penalty.
  • Your money goes straight to your bank account via direct deposit. 
  • No prepayment penalties
  • A+ BBB rating
  • 640-740 credit score is ideal