Prosper started in 2005, and is America’s first peer-to-peer lending marketplace. The San Francisco-based company has over 2 million members, and over $6 billion in funded loans. Because Prosper is not a bank, people invest in each other. Borrowers can list loan requests from $2,000 to $35,000. Individual lenders can invest as little as $25 with each loan they select. The company is currently run by CEO, Aaron Vermut.
Customers can enjoy loans from Prosper that help with debt consolidation, home improvements, baby and adoption, small businesses, special occasions, and auto and vehicles. However, customers with a low credit score could potentially have very high interest rates.
Easy Application Process
Prosper provides loans that can help with a variety of circumstances, one being debt consolidation. Signing up is quick, easy, and consists of the following steps:
- Provide basic information
- Check rates and review the loan options
The loan will originate and be deposited into one’s bank account once an investor commits funds for the loan
From there, monthly payments are fixed and automatically deducted from one’s bank account. Because interest rates for Proposer’s debt consolidation loans are fixed, rates will never change after the loan is processed (even if one misses a payment). Prosper only handles unsecured debt, and does not require collateral.
One can get their loan fast if they submit the application and all required documents quickly. It is possible to get 100 percent funded within 24 hours.
Prosper’s Debt Consolidation Loan
People with high interest rates can consolidate all of their loans into one debt consolidation loan, with Prosper. The company is not a big bank, and is known for providing affordable rates. One can check their rate online, a feature that does not affect one’s credit score.
Dozens of investors work collaboratively to fund posted loans. On average, borrowers get a rate 5 percent better than their credit card, leading to thousands of saved dollars.
People can choose between fixed three- and five-year terms, with no hidden fees, or prepayment penalties. Loans range from $2,000 to $35,000. Proposer’s electronic payment system is easy to use, and lets customer manage their entire consolidation loan directly.
Prosper Daily App
Prosper offers a convenient mobile app for both IOS and Android. The app makes it convenient to get a loan for debt consolidation, and allows customers the following features:
- Financial account and loans can all be viewed from one place
- The app shows where all of one’s money is going
- Customers can tracks their credit score, right from the app
No Consolidation Services
The company uses a loan to help people through debt consolidation, and does not actually provide debt consolidation services, or a debt consolidation program.
It is important to be aware of a few Prosper fees. Borrowers have to pay a $15 fee for a failed payment due to insufficient funds, or a closed or changed account.
For monthly payments that are 15 or more days late, borrowers must pay 5 percent of the unpaid installment amount or $15 dollars—depending on which is greater. Proposer does not retain the fees, and they are passed on to lenders.
One of Prosper’s most frustrating aspects is getting approved. It is difficult to do so, since requirements are strict. The company prefers people with high-paying jobs, and credit scores must be at least 640 to be considered. Even with a good credit score and salaried position, eligibility is not guaranteed since investors must still choose to commit funds to one’s account.
The company does not seem to hold any debt consolidation organization accreditations, like ISO, FCAA, or NFCC.
Frequently Asked Questions
Consolidation or Personal Loan?
Prosper does not offer a consolidation program or consolidation services. Instead, the company offers loans that customers can use toward debt consolidation.
What Is The Monthly Fee?
Proposer does not explain any information on monthly fees. However, the company does charge late fees. Borrowers must pay 5% of the unpaid installment amount, or $15 (whichever is greater) for monthly payments that are 15 or more days late.
Are There Any Upfront Fees?
The company does not provide any information about upfront fees.
What Is The Cancellation Policy?
The company does not offer any information on a cancellation policy, cancellation fees, or if Prosper offers a money-back guarantee.
Can I Get a Free Consultation?
It doesn’t seem the company offers a free, no-obligation debt consolidation consultation. While offering a free analysis is standard for the industry, Prosper does not advertise one.
About Prosper Debt Consolidation
Prosper is unlike most lending agencies. It is not a bank, but instead a peer-to-peer marketplace. Borrowers post loans, and investors commit to them. While the company does not offer a consolidation program or consolidation services, Prosper customers can combine multiple high-interest loans into one debt consolidation loan. This loan could actually save customers thousands of dollars in interest costs. Prosper works with fixed interest rates, and allows customers to borrow loans from $2,000 to $35,000.