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

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%. Back to Top
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. Back to Top
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. Back to Top
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. Back to Top
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. Back to Top
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. Back to Top
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. Back to Top
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: Fill out the initial application: Use the dropdown menus to select the desired loan amount, the purpose of the loan, and your credit score. Get your custom rate: Provide your name, address, employment status, individual yearly income, date of birth, email address, and custom password. 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. Back to Top
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 Back to Top
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 Back to Top

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!