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.
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:
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.
“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.
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: firstname.lastname@example.org
- 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!
|Lender||APR Range||Loan Amount|
|1 Includes AutoPay discount. Important Disclosures for SoFi.
2 Includes AutoPay discount. Important Disclosures for Payoff.
3 Important Disclosures for FreedomPlus.
4 Important Disclosures for Citizens Bank.
Citizens Bank Disclosures
5 Important Disclosures for LendingPoint.
6 Important Disclosures for LendingClub.
All loans made by WebBank, Member FDIC. Your actual rate depends upon credit score, loan amount, loan term, and credit usage & history. The APR ranges from 6.16% to 35.89%. For example, you could receive a loan of $6,000 with an interest rate of 7.99% and a 5.00% origination fee of $300 for an APR of 11.51%. In this example, you will receive $5,700 and will make 36 monthly payments of $187.99. The total amount repayable will be $6,767.64. Your APR will be determined based on your credit at time of application. The origination fee ranges from 1% to 6% and the average origination fee is 5.49% as of Q1 2017. There is no down payment and there is never a prepayment penalty. Closing of your loan is contingent upon your agreement of all the required agreements and disclosures on the www.lendingclub.com website. All loans via LendingClub have a minimum repayment term of 36 months or longer.
7 Important Disclosures for Earnest.
8 Important Disclosures for Avant.
* The actual rate and loan amount that a customer qualifies for may vary based on credit determination and other factors. Funds are generally deposited via ACH for delivery next business day if approved by 4:30pm CT Monday-Friday. Avant branded credit products are issued by WebBank, member FDIC.
** Example: A $5,700 loan with an administration fee of 4.75% and an amount financed of $5,429.25, repayable in 36 monthly installments, would have an APR of 29.95% and monthly payments of $230.33
* Important Disclosures for Upgrade Bank.
Upgrade Bank Disclosures
** Accept your loan offer and your funds will be sent to your bank via ACH within one (1) business day of clearing necessary verifications. Availability of the funds is dependent on how quickly your bank processes this transaction. From the time of approval, funds should be available within four (4) business days.
|7.73% – 29.99%||$1,000 - $50,000||Visit Upstart|
|5.81% – 15.37%1||$5,000 - $100,000||Visit SoFi|
|6.87% – 35.97%*||$1,000 - $50,000||Visit Upgrade|
|8.00% – 25.00%2||$5,000 - $35,000||Visit Payoff|
|4.99% – 29.99%3||$10,000 - $35,000||Visit FreedomPlus|
|5.99% – 18.99%4||$5,000 - $50,000||Visit Citizens|
|15.49% – 34.49%5||$2,000 - $25,000||Visit LendingPoint|
|6.16% – 35.89%6||$1,000 - $40,000||Visit LendingClub|
|5.49% – 18.24%7||$5,000 - $75,000||Visit Earnest|
|9.95% – 35.99%8||$2,000 - $35,000||Visit Avant|