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Prosper Loans Review

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Prosper Loan Review

Is Prosper a trustworthy and competitive option for personal loans? Customer reviews consistently rank Prosper among the best in the market, and its BBB accreditation and high rating reinforce its legitimacy.

Founded in 2005, Prosper has facilitated over $23 billion in loans, helping over 1.4 million consumers achieve their financial goals. Beyond debt consolidation and home improvement, Prosper caters to unique needs like financing medical bills or co-signing with a trusted partner.

Let’s dive deeper into what makes Prosper stand out and explore if it’s the right fit for you.

5% of the unpaid monthly payment

Prosper Personal Loan Rates and Company Details

  • Loan APR: 6.99% to 35.99%
  • Loan origination fee: 2.4%–5%
  • No Pre-payment penalty
  • Late fees can be up to 5% of the unpaid monthly payment
  • Borrow from $2,000 to $50,000
  • Get the funds within 24 hours
  • Prosper’s Minimum Credit Score Requirement: 640
  • Legal name: Prosper Marketplace, Inc. (Prosper Funding LLC)
  • Inception date: 2005
  • Founders: Chris Larsen, John Witchel

How does Prosper stack up against top-rated lenders?


  • BBB Accredited and A+ rated

  • Fixed-rate loans

  • No pre-payment penalty for paying off loan sooner

  • Offers joint loans

  • Option to change your payment date

  • A trusted lender with nearly 20 years in business


  • Low customer review rating

  • No rate discount for autopay

  • Funding time can be longer than many lenders.

  • Charges origination and late fees

  • Borrowers can choose from only two repayment term options.

What is Prosper and how does it work?

Prosper is an online platform that facilitates peer-to-peer lending. This means borrowers connect directly with investors instead of going through traditional banks or institutions.

Here’s how it works:

For Borrowers:

  • Apply for a loan: You specify the amount you need, the purpose (optional), and your desired repayment term.
  • Credit check and offer: Prosper assesses your creditworthiness and presents your loan profile to potential investors.
  • Investors bid: Interested investors offer their bids with specific interest rates.
  • Loan funding: If enough investors commit to fund your loan, you receive the money minus origination fees (typically 0.5% to 5%).
  • Make monthly payments: You repay the loan principal, interest, and any applicable fees in fixed monthly installments.

For Investors:

Browse loan listings:

  1. Choose the level of risk that you are willing to take on: Filter through loan profiles based on risk, credit score, purpose, and other factors. Like with most investments, higher risk equals a higher payout (potentially).
  2. Invest in portions of loans: You can choose to invest in parts of different loans, diversifying your portfolio and mitigating risk.
  3. Earn interest: As borrowers make payments, you receive a portion of the principal and interest, generating returns on your investment.
  4. Manage your portfolio: Monitor your investments, track payments, and reinvest when funds become available.

Prosper acts as a facilitator:

You can become a lender without having to hire a team of lawyers and experts on your own to do the due diligence. Prosper does all of this back-end work on the investor’s behalf.

  • They verify borrower identities and income.
  • They manage loan servicing and payment collections.
  • They provide investors with tools and resources to manage their portfolios.

Key Takeaways:

  • Prosper offers an alternative to traditional loan options for both borrowers and investors.
  • Borrowers can potentially access competitive rates and flexible terms.
  • Investors can earn potential returns while diversifying their portfolios.
  • Risks are involved, like potential loan defaults for investors and higher interest rates for borrowers compared to traditional lenders.

Prosper Personal Loan Credit Requirements

  • Prosper is a peer-to-peer lending platform that offers personal loans for borrowers with credit scores over 640.
  • In addition to credit score, borrowers are assigned a “Prosper score” that considers credit, debt-to-income ratio, and other factors.

Prosper vs. Bank Loans

Compared to a bank loan, Prosper’s personal loan requirements are much more flexible, as we’re about to explain.

Another benefit of using Prosper versus a bank is that its innovative online lending platform allows applicants to apply and get approved much faster.

How long does Prosper take to approve loans?

When you apply for a Prosper loan, within 24 hours, you can be approved and get the funds deposited into your account.

Review Prosper’s Home Equity Loans

In addition to unsecured personal loans and debt consolidation loans, Prosper has a home equity credit option for qualifying borrowers. Applicants can use Prosper loans to consolidate credit card debt, finance a home improvement project, pay for healthcare-related expenses, and finance just about any big purchase they’re attempting to make.

Prosper Personal Loan Rates

Prosper’s loan rates can be as low as 6.99%, with a fixed APR. (as of February 2024) 

Unlike credit card companies, which offer credit cards with a variable rate, Prosper loan rates won’t change over the entire loan duration. That’s a benefit for anyone on a fixed income.

The average interest rate on Prosper loans is 22.48%. 

Also, there are no pre-payment penalties if you want to pay off your loan faster.

The benefits of Prosper’s “peer-to-peer” lending:

Best of all, Prosper personal loans are originated through WebBank. However, after the loan is originated, your loan can be taken over by a variety of investors (i.e., peer-to-peer lending).

This can be a good or bad thing for certain people. For example, if you have bad credit, investors may not be willing to take on your account, and you may be denied a loan.

Like with anything in life, there are pros and cons to consider. On a positive note, having a group of wealthy investors bidding on your loan gives you more options to consider, including flexible payment terms.

How do you verify if Prosper is a licensed lender?

By visiting the Nationwide Mortgage Licensing System (NMLS), consumers can verify if Prosper is a licensed lender in a particular state. 

Prosper’s lending license disclosures page also illustrates details on their licenses in all the states in which they operate. 

Review Prosper Loan Requirements Summary

To get a personal loan, Prosper requires–

  • Must be 18 years of age or older with a bank account that’s in good standing.
  • Only U.S. citizens with a social security number are eligible for Prosper loans.
  • Applicants must be creditworthy, according to WebBank guidelines. WebBank requires a FICO score of 640 or higher.
  • If your credit score is under 640, you can apply with a co-applicant and could qualify.

Prosper Loans Reviews BBB

According to the Better Business Bureau (BBB), has maintained an A+ rating and BBB accreditation for over eighteen years. There are customer complaints against Prosper, but they responded to 100% of the complaints.

reviews on Prosper BBB

Summary of Prosper’s BBB complaints:

The common theme for Prosper’s BBB complaints centers around three places–

1.) Customers complain about unexpected and high fees, including late fees and interest charges.
Some customers feel that Prosper engages in unfair credit practices, increasing minimum payment requirements without clear explanations.

Tip: It’s essential to review your loan agreement with Prosper before signing for a personal loan, evaluating its terms and conditions, specifically around interest rates and fees.

To apply for a Prosper Loan, use You can compare Prosper loan rates against other lenders you qualify with for free through Credible.

2.) Customers report problems related to their Prosper credit card accounts, such as not receiving physical cards or experiencing difficulties with website access.
Some customers express frustration with customer service representatives, language barriers, and difficulty reaching a manager.

3.) Customers need help updating their account information, such as address and phone number changes.
There are complaints about a lack of communication from Prosper regarding account changes, late fees, or other issues.

In response to these complaints, Prosper generally attempts to address the specific issues raised by the customers quickly. They often apologize for customer inconveniences and, in most cases, offer to resolve the problems.

Please note that these responses are based on the information provided in the complaints and responses when we viewed these details on the Better Business Bureau’s website. For the most updated information on Prosper BBB complaints visit Prosper’s BBB profile page directly. Also, not all BBB complaints are valid.

Frequently Asked Questions

Does Prosper offer personal loans for bad credit?

Is it hard to get a loan with Prosper?

What are Prosper Loans best for?

What other loans are like Prosper?

Who can qualify for a Prosper loan?

Can I use a Prosper loan for any purpose?

How do I make payments on my Prosper loan?

What happens if I miss a payment? What are the risks of using Prosper?

About Author

Dr. Ali
Dr. Ali

Alex Delgado

Last Updated: February 26, 2024