Interested in a personal loan and want to know more about the available options? Our Prosper loan review provides personal loan options and information about how Prosper differs from other lenders in the industry.
A personal loan can help you fund a home project, bridge a gap, or help cover expenses. Annual percentage rates (APR) vary greatly between lenders, so it’s important to conduct thorough research to find the one that best fits your needs. Lenders can extend credit to a variety of credit scores, so it’s a good idea to know your credit score to help you narrow down your search.
Prosper Loan Review: Pros and Cons
Prosper Loan has several advantages as a personal loan lender that borrowers can benefit from, like fixed-rate borrowing and no prepayment penalties for paying off a loan earlier than its due date. However, Prosper Loan has some disadvantages, like longer wait times for consolidation loan funding and higher interest rates for personal loans for those with less-than-stellar credit.
How does Prosper stack up against top-rated lenders?
Pros
Can borrow up to $40,000
Loan repayment terms as long as five years
20 years of industry experience
Offers credit cards and Home Equity Lines of Credit (HELOCs)
Cons
Charges up to 35.99% APR
No autopay discount
Charges an origination fee
Funding can take up to 5 days
Prosper Overview
Prosper is a peer-to-peer lender that started operating in 2005. Since then, it has helped more than 1.7 million people and facilitated more than $27 billion in loans. You can find loans from $2,000 to up to $50,000. Plus, the company has added credit card and HELOC services. It maintains an A+ BBB rating and holds favorable scores across review sites. It caters to those with low credit scores who might not have access to traditional lenders. However, with that, you could experience higher APR rates.
Prosper Loan Review: Features and Benefits
Prosper has several additional features and benefits for borrowers, in addition to quick access to cash. Borrowers can use co-applicants on loans with Prosper if they don’t qualify independently. The lender also offers flexible loan amounts from $2,000 to $50,000 to help with expenses you have to cover or debt to consolidate. The loan approval and funding process can move quickly, with borrowers getting approved in as little as a day and receiving funding within a day. Although, funding can take up to five days in some situations.
- Allows for co-applicants
- Flexible borrowing amounts
- Instant approval
- Mobile app available
About Prosper
In addition to personal loans, you can also find credit cards through Prosper. The card has lines of $500 to $3,000 that feature no annual fees, security deposits, or ATM fees. The card provides 50% of your credit line once approved, and you’ll have access to your full credit limit when you receive the card.
If you have a mortgage, you can also apply for a HELOC or home equity loan through Prosper. The lender offers HELOC rates as low as 7.65%, and you can draw up to 90% of your home’s equity. Prosper home equity loan rates can start as low as 7.747% APR with terms from five to 30 years on a fixed-rate loan. You can also tap into up to 90% of your home’s equity with a Prosper home equity loan.
Prosper Loan Rates and Information
Prosper personal loan rates vary from 8.99% to a maximum APR of 35.99% based on your qualifications. You need to share your basic income information and expenses with Prosper to determine what interest rate you will receive. In addition, there is a loan origination fee, which ranges from 1% to 9.99%, which will affect your beginning loan balance. Your credit score will also impact your loan APR.
Prosper HELOC rates start as low as 7.65% APR and home equity loan rates start as low as 7.747% APR. Prosper’s credit card has an APR of 23.49% to 34.99%, and you need to apply and sign up for autopay to avoid a $39 annual fee.
Prosper Loan Review: Editorial Rating
Trusted Company Reviews Rating Score for Prosper: 8.0
We awarded Prosper a score of 8.0 out of 10 after our thorough analysis of the company. We compared its rates and borrowing limits against competitors and found Prosper stands up competitively in a busy market.
We also evaluated the company based on reviews it has received and customer feedback. Prosper enjoys high marks across review sites but does suffer some customer complaints, though they largely center on issues with its credit card business.
| APR | 8.99% – 35.99% |
| Loan Amount | $2,000 – $50,000 |
| Origination Fee | 1% – 9.99% |
| Loan Terms | 24 – 60 months |
| Prepayment Fee | $0 |
| Late Fee | 5% ($15 minimum) |
| Minimum Credit Score | 560 |
| Minimum Income | Any |
| Loan Purpose | Debt consolidation, refinancing, home improvement, vacations, vehicle purchases, healthcare financing |
| Funding Period | One to five days |
What We Like
We like that Prosper offers competitive APRs and works to extend credit to those in need by catering to those with lower credit scores. You can also use a co-applicant to qualify for Prosper loans. There aren’t any prepayment penalty fees if you pay off your loan early. We also like that you can apply online, get approved, and receive funds in less than a week.
What We Don’t Like
We don’t like Prosper’s lack of transparency with some of its business. As a peer-to-peer lending service, Prosper is not the actual lender for your loan. WebBank originates the loans, and there is a loan origination fee associated with that. The fee ranges from 1% to 9.99% of your loan amount, which gets tacked onto your loan’s beginning balance. Additionally, Prosper’s credit card advertises a $0 annual fee, but that only applies if you enroll in autopay.
Prosper Loan Consumer Reviews
Prosper enjoys customer review ratings from a 4.7-star rating out of 5 with Credit Karma to 2.4 out of 5 across other review sites. The company mostly holds review scores of 4.0 or better, and those who have used Prosper for a loan appreciate how quick the process was when receiving funding. Many describe the loan process as pain-free and easy. Other positive reviews found Prosper offered the best loan rates among the lenders they researched.
Those who have left negative reviews experienced delays in the funding of their loan. In some cases it took up to two weeks for a borrower to receive funds. Other reviewers who took issue with the company cited problems with customer service. Those who called the company call center found the representatives didn’t provide much information, and those asking for deferments experienced difficulty, too.
Who Prosper is Best For
Prosper is best for those in need of loan funds to cover expenses and those with lower credit scores who can’t use traditional lenders for funds. The company caters to those interested in debt consolidation, consumers with lower credit scores, homeowners who need to tackle a home project, people with healthcare bills, and those looking to purchase vehicles. Prosper has higher APRs than banks, but it can provide additional cash flow to those who may not get approved elsewhere.
Prosper Vs. Upstart
Upstart is a Prosper Loan competitor that also receives favorable reviews. It ranks among the best debt consolidation companies in the industry. Upstart also ranks as one of the best personal loan companies for fair credit borrowers. We took a closer look to compare Prosper vs. Upstart loans so you can see how they differ and decide which might work best for your situation.
| Prosper | Upstart | |
| Rating | 8.0 | 9.0 |
| Minimum credit score | 560 | 620 |
| APRs | 8.99% to 35.99% | 7.8% to 35.99% |
| Loan amount | $2,000 to $40,000 | $1,000 to $50,000 |
| Repayment terms | 24 to 60 months | 36 to 60 months |
| Origination fee | 1% to 9.99% | 0% to 12% |
Is Prosper Worth It?
If you’re wondering if Prosper is worth it for you, it comes down to your financial situation. If you have a lower credit score and no other funding options, then Prosper can be a solid choice for a personal loan.
It’s also an option if you need cash quickly because you can receive funding in as little as a week versus traditional lenders, where it can take longer for them to process your loan and longer to get money sent to you. If you’re comfortable with a higher interest rate and can afford to pay the loan back without missing payments, then Prosper can be worth it for you.
Prosper Loan Alternatives
While Prosper can be a solid choice for many consumers, especially those with less-than-perfect credit, other companies scored higher in our evaluations due to better flexibility, better customers service, or other attributes that make them stand out. Before choosing, be sure to check out these other Prosper Loan alternatives to make sure you find the best lender for your needs.
Frequently Asked Questions
What credit score is needed for a Prosper loan?
What are the downsides of choosing Prosper for a lender?
How long does it take to get approved by Prosper?
Source
Logo image source: prosper.com
Nick Gerhardt
