Prosper is a peer-to-peer lending service that offers personal loans with fixed interest rates. If you are interested, continue reading the review to find out if Prosper could benefit you.
If you have pretty good credit and need up to $40,000 in funds, you are eligible to apply and can pay back the money in 3-5 years.
However, in order for your loan to be approved, investors have to contribute at least 70% of the amount.
Prosper General Information
|APR||6.95% – 35.99%|
|Loan Amount||$2,000 – $40,000|
|Term Length||3 or 5 years|
|Origination Fee||2.4% – 5%|
|Unsuccessful Payment Fee||Presumably the same as late fee|
|Late Fee||$15 or 5% of amount paid|
|Minimum Gross Income||None|
|Minimum Credit Score||640|
|Additional Information||3 to 5 business days to receive funds|
- Credit Score: 710
- Credit History: you need at least 11 years of credit
- Annual Income: $89,000
Pros and Cons of a Prosper Personal Loan
- You don’t need to own a home to apply.
- The application is simple and easy to follow.
- Initial credit check will not affect your credit score. However when your loan is approved, it will show up on the report.
- It takes up to 1 to 3 business days after approval.
- A personal loan from Prosper can be used towards small business, debt consolidation, home improvement, medical bills and other special occasions.
- If you have excellent credit score, your APR can be as low as 6.95%.
- You can make additional payments if you want. There are no extra fees for paying you loan ahead of time either.
- Prosper has partnered with Clarity Money to work together to improve your financial situations. This app analyzes your financial situation and works to improve it with the use of artificial intelligence, machine learning, and data science.
- You can rebuild your credit with Prosper! Prosper will report your payments to credit reporting bureaus to show them your progress.
- Unfortunately Prosper is not available in all states. Prosper is not available in Iowa or West Virginia.
- You are only limited between either a 3 year term or 5 year term.
- Before you receive your funds, you will be deducted by an origination fee of 2.4% to 5%.
- The late fee is always $15 or 5% the amount due.
Prosper Personal Loan Eligibility
To qualify for a personal loan from Prosper, you will need to meet the following requirements:
- Bank account and a Social Security number
- Credit score of at least 640 on the FICO 08
- No more than (7) credit inquiries in the last (6) months
- Steady source of income
- A credit-to-debt ratio below 50%
- At least (3) open credit accounts, which include credit cards, loans and other lines of credit.
- No bankruptcies filed in the last year
DISCLOSURE: *For example, a three-year $10,000 loan with a Prosper Rating of AA would have an interest rate of 5.31% and a 2.41% origination fee for an annual percentage rate (APR) of 6.95% APR. You would receive $9,759 and make 36 scheduled monthly payments of $301.10. A five-year $10,000 loan with a Prosper Rating of A would have an interest rate of 8.39% and a 5.00% origination fee with a 10.59% APR. You would receive $9,500 and make 60 scheduled monthly payments of $204.64. Origination fees vary between 2.41%-5%. APRs through Prosper range from 6.95% (AA) to 35.99% (HR) for first-time borrowers, with the lowest rates for the most creditworthy borrowers. Eligibility for loans up to $40,000 depends on the information provided by the applicant in the application form. Eligibility is not guaranteed, and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. Refer to Borrower Registration Agreement for details and all terms and conditions. All loans made by WebBank, member FDIC.
How To Apply For a Prosper Personal Loan
Prosper’s application process may take a while to get through, but it should be a simple process.
- Fill out a brief personal loan application on Prosper’s website for the desired loan amount.
- Upon submitting the form, Prosper conducts a soft pull, which will not affect your credit score.
- After reviewing your loan offers, you make a selection as to which term best suits your needs.
- Fill out a more detailed application and agree to the site’s lending terms and disclosures.
- While your loan is in the marketplace for investors to oversee, Prosper will conduct a three-stage verification check of your income, identity and other data, which may require you to provide additional documents.
- If investors fund more than 70% of your loan, you can borrow that amount. If you don’t make it across the 70% threshold, you may set up a new listing. (Listings stay on Prosper’s marketplace for a maximum of 14 days.)
- Once your loan is fully funded and you’ve been verified, Prosper initiates a hard credit check (this will affect your credit score).
- The loan is transferred to your account.
Prosper is best recommended for those starting a new business and have pretty good credit history.
Even if you don’t have the highest credit score, as long as it’s pretty decent, they can just conduct a soft credit pull that won’t affect your credit score.
Are you interested in this personal loan from this lender? Please let us know in the comment section below on your experience!
Interested in looking into more personal loans? Then check out our Best Personal Loans right here on BCS!
(Visit Prosper for more details)
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