LendingClub vs. Prosper: Who Provides the Better Peer-to-Peer Loan?

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Last Updated: December 8th, 2020

Two of the most popular companies in the peer-to-peer personal lending industry are LendingClub and Prosper. On paper, the companies are nearly identical: they employ the same application process, are available almost everywhere, and offer very similar terms. So, when it comes to deciding which company does it better, finding the answer is almost like splitting hairs.

To see how Lending Club and Prosper compare across important areas, click on any of the loan features below:

APR
Time Allotted for Peer-to-Peer Investors to Fund
Loan Delivery Time
Credit Score Requirements
Debt-to-Income Ratio
Available States
Max Loan Amount
Application Process
Fees
The Bottom Line
See Them for Yourself!

APR

LendingClub

Prosper

LendingClub's APR ranges from 4.99% to 35.96% (4.99% APR for applicants with exceptional credit). Prosper's advertised APR ranges from approximately 5.99% to 36%.

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Time Allotted for Peer-to-Peer Investors to Fund

LendingClub

Prosper

LendingClub requires loans to be 60% funded before they are issued. If the loan does not reach 60% within 30 days, the listing will expire and the applicant will have to reapply; however, less than one percent of LendingClub loans are not completely funded. Prosper requires loans to be 70% funded within 14 days in order for the applicant to receive the full loan amount. If the loan is not 70% funded within 14 days, the applicant will be declined and invited to reapply if interested.

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Loan Delivery Time

LendingClub

Prosper

If approved, the average time it takes for a loan to be delivered to an applicant through LendingClub is seven days. The average time from start to finish for an approved applicant to receive funds through Prosper is advertised as three-to-five days.

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Credit Score Requirements

LendingClub

Prosper

For LendingClub borrowers, the minimum acceptable credit score is 660; the average credit score is 699, the average credit history is 16 years, and they cannot have any late payments on their report in the past 12 months. For Prosper borrowers,the minimum acceptable credit score is 640; the average credit score is 705, and they must have a minimum of three open lines of credit.

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Debt-to-Income Ratio

LendingClub

Prosper

The average debt-to-income ratio for LendingClub borrowers is 18.12% not including a mortgage. Prosper requires applicants to have a debt-to-income ratio of 5% or less (not including a mortgage) in order to be considered.

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Available States

LendingClub

Prosper

Personal loans through LendingClub are available for borrowers in all states except Iowa. Personal loans through Prosper are available for borrowers in all states except Iowa, Maine, and North Dakota.

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Max Loan Amount

LendingClub

Prosper

The maximum loan amount is the same for both LendingClub and Prosper:

Personal loans through LendingClub range from $1,000 to $35,000. The average LendingClub loan is $14,741.

Personal loans through Prosper range from $2,000 to $35,000. The average Prosper loan is $10,540.

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Application Process

LendingClub

Prosper

The application processes for LendingClub and Prosper are very similar: they each offer quick, simple online application forms that can be completed in minutes:
  1. Fill out the initial application: Use the dropdown menus to select the desired loan amount, the purpose of the loan, and your credit score.
  2. Get your custom rate: Provide your name, address, employment status, individual yearly income, date of birth, email address, and custom password.
  3. Choose your loan: If approved, you will be given different loan options to choose from. Once you have chosen your loan and terms, the loan will be listed for private investors to fund. If your loan has reached 60% funding in 30 days on LendingClub, or 70% funding in 14 days on Prosper, you will be issued the loan. If the loan does not receive sufficient funding within the allotted time period, you will be denied and asked to reapply.

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Fees

LendingClub

Prosper

  • No Early Payoff Fee
  • No Direct Deposit Fee
  • Unsuccessful Payment Fee: $15
  • Late Payment Fee (after 15-Day Grace Period): The Greater of 5% of the Unpaid Installment or $15
  • Origination Fee: 1% - 6%
  • $7 Check Processing Fee and Fixed Loan Rate
  • No Early Payoff Fee
  • No Direct Deposit Fee
  • Unsuccessful Payment Fee: $15
  • Late Payment Fee (after 15-Day Grace Period): The Greater of 5% of the Unpaid Installment or $15
  • Origination Fee: 1% - 6%
  • Loan Rate Changes Month-to-Month

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The Bottom Line

Both LendingClub and Prosper are good options for prime credit applicants looking to obtain a personal loan. If you have a low credit score, a high debt-to-income ratio, and would like to receive your loan in three-to-five days, Prosper may be the best choice for you. If, however, you're looking for a low APR rate, a high chance of getting approved, and an affordable fixed rate on your loan, you are probably better off pursuing a personal loan through LendingClub.
LendingClub's Advantages
  • APR Rates
  • Time Allotted for Peer-to-Peer Investors to Fund the Loans
  • Chance for Approval
  • State Availability
  • Fees
Prosper's Advantages
  • Loan Delivery Time
  • Credit Score Requirement
  • Debt-to-Income Ratio

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See Them for Yourself!

Now that you've gotten to know these companies a little better, take a look at our full company reviews for specific information on LendingClub and Prosper, including our expert score, user reviews, and more!


LendingClub

lending club loans logo

  • APR as low as 4.99%
  • 10-Minute Application Process
  • Receive Funds in 7 Days
  • High Chance of Approval
  • No Prepayment Penalty
  • Avg. Loan Size: $14,741


Prosper

prosper loans logo

  • APR as low as 5.99%
  • 640 Minimum Credit Score
  • Receive Funds in 3 - 5 Days
  • Medium Chance of Approval
  • No Prepayment Penalty
  • Ideal Debt-to-Income Ratio: 50% or Under


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