Everything You Need to Know About Getting a Personal Loan with Prosper

prosper loans review

If you need a personal loan, you might consider a peer-to-peer lending platform — an innovative way of borrowing that connects you directly to investors.

One popular company is Prosper, which cuts out the middleman and allows you to receive loans from individual investors.

If you want to learn more about the platform and how it could help you, this Prosper loans review will tell you everything you need to know as of August 2017.

Prosper loans review

Prosper doesn’t use a bank to fund your loan; instead, it connects you directly to investors. That’s both good and bad.

You could get your money quickly and at a great interest rate. But because the loan is unsecured (no collateral attached), you’ll need to have a strong credit score and income to qualify.

Here’s how it works: You’ll choose a loan amount and purpose (debt consolidation, vacation, medical bill, etc.) and post a listing.

If investors like your request, they’ll fund it. Within one to three days of the loan’s origination, Prosper will deposit the money directly into your bank account.

At that point, your loan will look similar to any other; you’ll make fixed monthly payments for the duration of the term.

Prosper vs. LendingClub

If you’re wondering how Prosper compares to its competitor LendingClub, it’s similar. Across both the platforms, interest rates and features are basically the same.

Late payment fees are also the same, but for borrowers with poor credit, Prosper’s origination fees are lower.

Prosper loans products

Prosper offers fixed-term loans for three or five years in amounts from $2,000 to $35,000.

You can use the loans for personal reasons, with the notable exception of postsecondary educational expenses. That’s because some federal rules aren’t compatible with Prosper’s platform, according to the site.

Student debt is part of that restriction — which means you can’t use Prosper to repay or consolidate student loans.

You can, however, use a Prosper loan to consolidate other debt (like car or credit card payments) and thus have fewer bills to worry about.

The company also offers financing for medical procedures through a subsidiary called Prosper Healthcare Lending.

Using Prosper’s online platform

Getting your custom rate with Prosper takes less than 30 seconds. All you need to do is enter some basic information about yourself and your loan request. Then the platform will come back with an interest rate.

This initial application requires a soft credit pull, which means it won’t hurt your credit score.

prosper loans review

Image credit: Prosper

prosper review

Image credit: Prosper

After you submit your application, Prosper will check and verify the information. According to the site, the verification and underwriting process usually takes seven or fewer business days.

If you’d prefer to talk to someone, you also can apply for a loan by calling 1-877-611-8801.

Prosper fees and interest rates

Prosper’s interest rates range from 5.99% APR to 36.00% APR for first-time borrowers, depending on creditworthiness.

The company prides itself on the fact that it doesn’t have hidden fees. For example, it doesn’t charge any fees for making extra or early payments on your loan.

You will, however, have to pay fees if your payment is more than 15 days late ($15 or 5 percent of the unpaid amount, whichever is greater) or if your payment is returned ($15).

To initiate your loan, you’ll also need to pay an origination fee of 1 to 5 percent of the amount you’re borrowing. The exact amount depends on your Prosper Rating, which is the company’s proprietary system for evaluating borrowers. The riskier Prosper thinks you are, the higher your origination fee.

This chart breaks down how much you’ll pay in origination fees, depending on your rating:

 prosper vs. lendingclub

Image credit: Prosper

The origination fee is taken out of your loan — so if you need a specific amount to cover, say, a particular bill, then ask for a loan amount that includes the anticipated fee.

Prosper eligibility requirements

To qualify for a Prosper personal loan, you must be a U.S. resident in any state other than Iowa, Maine, North Dakota, or Pennsylvania.

In addition to having a bank account and Social Security number, you also must meet the following minimum eligibility requirements:

  • FICO credit score of 640 or higher (based on TransUnion)
  • Debt‐to‐income ratio below 50 percent
  • Stated income greater than $0
  • No bankruptcies filed within the last 12 months
  • Fewer than seven credit bureau inquiries within the last six months
  • Minimum of three open trades on your credit report

Prosper customer service

When it comes to customer service, Prosper lending reviews are excellent.

Not only does the company have an A-plus rating on the Better Business Bureau website, but its Credit Karma rating is 4.6 stars (out of five) after more than 300 reviews.

“I applied twice for a loan with Prosper, and I have to say how easy it was to get it,” wrote user RobertFuentes1 in his Prosper review. “Low monthly payment with no hidden fees was great for me. I will be coming back to get another loan in the future.”

Prosper’s phone line (1-866-615-6319) is open from Monday to Friday from 8 a.m. to 9 p.m. ET and Saturday from 9 a.m. to 5:30 p.m. ET.

Prosper contact

Now that you’ve read this Prosper loans review, you might be interested in learning more about the company and how it could help you.

Here’s how to get in touch:

  • Website: Prosper.com
  • Phone: 1-866-615-6319
  • Email: support@prosper.com
  • Social media: Facebook / Twitter / LinkedIn
  • Mailing address: Prosper Marketplace Inc., P.O. Box 396081, San Francisco, CA 94139-6081

Interested in a personal loan?

Here are the top personal loan lenders of 2018!
LenderRates (APR)Loan Amount 
1 Includes AutoPay discount. Important Disclosures for SoFi.

2 Important Disclosures for Citizens Bank.

SoFi Disclosures

  1. Terms and Conditions Apply: SOFI RESERVES THE RIGHT TO MODIFY OR DISCONTINUE PRODUCTS AND BENEFITS AT ANY TIME WITHOUT NOTICE. To qualify, a borrower must be a U.S. citizen or permanent resident in an eligible state and meet SoFi’s underwriting requirements. Not all borrowers receive the lowest rate. To qualify for the lowest rate, you must have a responsible financial history and meet other conditions. If approved, your actual rate will be within the range of rates listed above and will depend on a variety of factors, including term of loan, a responsible financial history, years of experience, income and other factors. Rates and Terms are subject to change at anytime without notice and are subject to state restrictions. SoFi refinance loans are private loans and do not have the same repayment options that the federal loan program offers such as Income Based Repayment or Income Contingent Repayment or PAYE. Licensed by the Department of Business Oversight under the California Finance Lender Law License No. 6054612. SoFi loans are originated by SoFi Lending Corp., NMLS # 1121636. (www.nmlsconsumeraccess.org)
  2. Personal Loans: Fixed rates from 5.49% APR to 14.24% APR (with AutoPay). Variable rates from 5.29% APR to 11.44% APR (with AutoPay). SoFi rate ranges are current as of December 1, 2017 and are subject to change without notice. Not all rates and amounts available in all states. See Personal Loan eligibility details. Not all applicants qualify for the lowest rate. If approved for a loan, to qualify for the lowest rate, you must have a responsible financial history and meet other conditions. Your actual rate will be within the range of rates listed above and will depend on a variety of factors, including evaluation of your credit worthiness, years of professional experience, income and other factors. Interest rates on variable rate loans are capped at 14.95%. Lowest variable rate of 5.29% APR assumes current 1-month LIBOR rate of 1.34% plus 4.20% margin minus 0.25% AutoPay discount. For the SoFi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly. APRs for variable rate loans may increase after origination if the LIBOR index increases. The SoFi 0.25% AutoPay interest rate reduction requires you to agree to make monthly principal and interest payments by an automatic monthly deduction from a savings or checking account. The benefit will discontinue and be lost for periods in which you do not pay by automatic deduction from a savings or checking account.

Citizens Bank Disclosures

  1. Personal Loan Rate Disclosure: Variable rate, based on the one-month London Interbank Offered Rate (“LIBOR”) published in The Wall Street Journal on the twenty-fifth day, or the next business day, of the preceding calendar month. As of August 1, 2017, the one-month LIBOR rate is 1.23%. Variable interest rates range from 6.02% – 15.97% (6.02% – 15.97% APR) and will fluctuate over the term of your loan with changes in the LIBOR rate, and will vary based on applicable terms and presence of a co-applicant. Fixed interest rates range from 5.99% – 16.24% (5.99% – 16.24% APR) based on applicable terms and presence of a co-applicant. Lowest rates shown are for eligible applicants, require a 3-year repayment term, and include our Loyalty and Automatic Payment discounts of 0.25 percentage points each, as outlined in the Loyalty Discount and Automatic Payment Discount disclosures. Subject to additional terms and conditions, and rates are subject to change at any time without notice. Such changes will only apply to applications taken after the effective date of change.
  2. Loyalty Discount: The borrower will be eligible for a 0.25 percentage point interest rate reduction on their loan if the borrower has a qualifying account in existence with Citizens Bank at the time the borrower has submitted a completed application authorizing us to review their credit request for the loan. The following are qualifying accounts: any checking account, savings account, money market account, certificate of deposit, automobile loan, home equity loan, home equity line of credit, mortgage, credit card account, student loans or other personal loans owned by Citizens Bank, N.A. Please note, Citizens Bank checking and savings account options are only available in the following states: CT, DE, MA, MI, NH, NJ, NY, OH, PA, RI and VT. This discount will be reflected in the interest rate and Annual Percentage Rate (APR) disclosed in the Truth-In-Lending Disclosure that will be provided to the borrower once the loan is approved. Limit of one Loyalty Discount per loan, and discount will not be applied to prior loans. The Loyalty Discount will remain in effect for the life of the loan.
  3. Automatic Payment Benefit: Borrowers will be eligible to receive a 0.25 percentage point interest rate reduction on their student loans owned by Citizens Bank, N.A. during such time as payments are required to be made and our loan servicer is authorized to automatically deduct payments each month from any bank account the borrower designates. Discount is not available when payments are not due, such as during forbearance. If our loan servicer is unable to successfully withdraw the automatic deductions from the designated account three or more times within any 12-month period, the borrower will no longer be eligible for this discount.
7.39% - 29.99%$1,000 - $50,000Visit Upstart
5.29% - 14.24%1$5,000 - $100,000Visit SoFi
8.00% - 25.00%$5,000 - $35,000Visit Payoff
5.99% - 16.24%2$5,000 - $50,000Visit Citizens
5.99% - 35.89%$1,000 - $40,000Visit LendingClub
5.25% - 14.24%$2,000 - $50,000Visit Earnest
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Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life. We sometimes earn a sales commission or advertising fee when recommending various products and services to you. Similar to when you are being sold any product or service, be sure to read the fine print, understand what you are buying, and consult a licensed professional if you have any concerns. Student Loan Hero is not a lender or investment advisor. We are not involved in the loan approval or investment process, nor do we make credit or investment related decisions. The rates and terms listed on our website are estimates and are subject to change at any time. Please do your homework and let us know if you have any questions or concerns.