Prosper

• Easy Application Process
• Competitive Interest Rates
• No Prepayment Penalty
• Prosper Rating System
• Grace Period
• Payment Options

Easy Application Process

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. 

Competitive Interest Rates

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. 

No Prepayment Penalty

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. 

Prosper Rating System

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. 

Grace Period

If your monthly payment isn’t made in full within 15 calendar days of your due date, then you are charged a late fee. 

Payment Options

To make your monthly payments, you have several options: 

• Autopay
• Check
• Online
• Phone

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• Not Ideal for Subprime Applicants
• Fees Apply
• Loan Charge-Offs
• Borrower States
  

Not Ideal for Subprime Applicants

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:

• Average credit score is 703
• Average annual individual income is $83,000
• Minimum of three open lines of credit
• Debt-to-income ratio under 50% (excluding mortgage)

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.

Fees Apply

There are several fees that prospective borrowers should be aware of:

• Origination fee – 2.4%–5% of the amount you borrow 
• Check processing fee – $5 or 5% of your payment (whichever is less)
• Late fees – $15 or 5% of the payment amount (whichever is greater)
• Insufficient funds charge – $15

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. 

Loan Charge-Offs

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. 

Borrower States

Prosper’s unsecured loans are not available to people in two states: 

• Iowa
• West Virginia

Consumers living in those two states will have to look for another lender to consolidate their credit card or other loan debt.