Prosper Funding LLC, also known as Prosper Marketplace, Inc., gives borrowers access to collateral-free, personal loans at low, fixed rates. In 2005, it was the first online lending marketplace to launch in the United States. Based in San Francisco, Prosper is not a traditional banking institution. As a peer-to-peer lending platform, the platform connects investors to borrowers.
All Prosper loans are made by WebBank, an FDIC-insured bank based in Utah. This is the same lending institution that also funds personal loans for other lending sites, including Upgrade, Lending Club, and Avant.
The Prosper platform has funded over $15 billion in personal loans and offers people the investment opportunities. Through Prosper, consumers with good credit can get a personal loan from $2,000 to $40,000 to help with a variety of life’s expenses:
This lender has a few borrower requirements that consumers should be aware of:
Consumers can even check their rate by entering basic information, without a hard credit pull, so it won’t affect their credit score. However, to borrow, you need to have a bank account, social security number.
With an easy online application, no hidden fees or prepayment penalties, Prosper is a smart way to get the money you need and improve your financial well-being.
Keep reading our Prosper personal loan review for pros and cons, plus consumer reviews.
The Prosper personal loan application is fast and simple. On the Prosper website, enter the amount of money you wish to take out (between $2,000 and $40,000). Next, provide the purpose of your loan, your name, address, employment status, individual yearly income, date of birth, email address, and create a password for your account. Select the box at the bottom of the page confirming your electronic signature and then click "View Your Offers."
If approved, the following page will show you potential personal loan options to choose from. After selecting the desired loan amount and other related terms, Prosper may request additional verification documents.
If you aren’t approved, you are referred to AmOne, a personal loan matching service that connects borrowers and lenders, and doesn’t require such high credit standards.
From start to finish, if your loan application is approved, you should receive your loan money within seven days via direct deposit into your bank account. Keep in mind that the average funding time is five days.
Loan amounts vary between $2,000 and $40,000, with loan terms varying between three and five years.
For applicants with a good credit history, Prosper offers competitive interest rates. Its annual percentage rate (APR) range is between 6.95 percent and 35.99 percent, with more qualified applicants being issued personal loans with rates closer to 10 percent.
If you are wanting to get a lower rate, try applying for a smaller loan and having a shorter loan term.
There is also no penalty for paying off your loan early. This can save you a lot of money when if you are able to repay your loan early.
This lending platform uses a proprietary rating system. It assigns a letter grade to express the expected level of risk to Prosper investors. Rates and repayment terms improve for borrowers with better Prosper Ratings.
If your monthly payment isn’t made in full within 15 calendar days of your due date, then you are charged a late fee.
To make your monthly payments, you have several options:
Being approved by Prosper can be challenging for applicants with less-than-perfect credit. While Prosper advertises a minimum credit score requirement of 640 in order to apply, this score may not always be high enough to get you approved.
Prosper takes into account different factors when approving borrowers. These factors include, but are not limited to, credit score, annual income, state of residency, and how many lines of credit an applicant has open.
Below is a description of the average Prosper personal loan borrower:
These averages don't always describe applicants who are looking to borrow money to consolidate debt or make a home improvement purchase. Prosper personal loans are better suited for those with prime credit and good credit history.
There are several fees that prospective borrowers should be aware of:
The fee rate assigned depends on the grade the borrower has been given based on financial standing.
Note: The origination fee is included in your quoted APR.
If your loan payment is more than 120 days late, it will be charged-off and can be sent to collections. If your loan is charged-off, you can’t borrow from this lending company again and your delinquincy will be reported to the credit bureaus.
Prosper’s unsecured loans are not available to people in two states:
Consumers living in those two states will have to look for another lender to consolidate their credit card or other loan debt.
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