Prosper Personal Loans Review 2024: Safe Verification

Prosper is a peer-to-peer lending marketplace that connects borrowers with investors willing to fund personal loans. Prosper offers an easy online application, flexible loan amounts and terms, and potential for competitive interest rates. This makes them an attractive option for certain borrowers, especially those with fair credit.

Overview of Prosper:

Unlike banks, Prosper doesn’t fund loans themselves. Instead, they facilitate loans by:

• Allowing borrowers to apply for personal loans online
• Conducting credit checks and due diligence
• Posting approved loan requests on their marketplace
• Enabling individual and institutional investors to review requests and invest in loans
• Collecting and distributing borrower repayments to investors
• This model provides borrowers access to more potential funding sources beyond traditional banks.

Prosper Personal Loan Qualifications:

Prosper has more flexible credit requirements than many lenders:

• Minimum credit score: 560, although higher scores get better rates
• Income: Stable monthly income; full-time employment preferred
• Existing debt: Total monthly debt obligations shouldn’t exceed 50% of gross income
• Credit history: At least 3 active trade lines (credit cards, loans, etc.)

Prosper also considers your debt-to-income ratio, credit usage, and other factors when evaluating your application.

Loan Amounts, Terms, and Usage:

Prosper offers personal loans from $2,000 to $40,000. The Prosper’s loan terms will range from 36 to 60 months.

You can use Prosper loans for nearly any personal purpose, including:

• Debt consolidation
• Home improvement
• Medical expenses
• Auto repairs
• Special purchases
• Moving expenses
• Taxes and more

The loan funds are deposited into your bank account and can be used as you want.

Prosper’s Application and Funding Process:

To get a Prosper personal loan, you’ll need to:

1. Complete an online application – Includes personal, income, and employment info.
2. Allow a soft credit check – Prosper checks your credit to provide rates but it doesn’t affect your score.
3. Review loan offers – If eligible, you’ll see loan offers listing rates and terms.
4. Agree to a hard credit check – This is needed if you proceed; it can temporarily impact your score.
5. Get investor funding – If you accept a loan offer, investors can fund all or part of your loan over 10-14 days.
6. Receive your funds – Once fully funded, the loan amount is deposited in your bank account, minus any origination fees.

Interest Rates and Fees:

Prosper offers fixed interest rates based on your creditworthiness:

1. Credit score: The higher your score, the lower the rate. Rates currently range from 7.95% to 35.99% APR.
2. Origination fee: You pay an origination fee of 2.4% to 5% of the loan amount. This is deducted from the total disbursed.
3. Late fee: A late fee of $15 or 5% applies if you miss a payment by over 15 days.
4. Failed payment fee: A fee of $15 applies for any failed payments due to non-sufficient funds.

Prosper vs. Other Lenders:

Prosper offers competitive rates but it’s wise to compare options:

Lender	Min. Credit Score	APR Range	Loan Amounts
Prosper	560	7.95% – 35.99%	$2,000 – $40,000
LendingClub	600	8.05% – 35.89%	$1,000 – $40,000
Upstart	620	8.37% – 35.99%	$1,000 – $50,000
Lightstream	660	4.29% – 19.99%	$5,000 – $100,000

Review loan terms, qualification criteria, fees, and customer reviews before deciding on a lender.

Prosper’s Reputation:

Prosper holds an A+ rating with the Better Business Bureau. Customer feedback includes:

Pros:

• Quick and easy online application
• Friendly customer support
• Competitive rates for some borrowers

Cons:

• Lower credit customers may not qualify
• Rates not as low as some lenders
• Loan listing process can be slow

For borrowers with excellent credit, other lenders may offer lower rates. But Prosper can be ideal for those with good or fair credit seeking competitive financing.

Applying for a Prosper Personal Loan:

If you think a Prosper loan may suit your needs, follow these steps:

• Go to Prosper.com and click on Personal Loans.
• Check loan rates without affecting your credit.
• Select your desired loan amount and purpose.
• Provide personal information and consent to a credit check.
• Review your personalized loan offers if eligible.
• Select a loan offer and submit documentation to verify income and identity.
• Allow your loan to be listed on the marketplace for investor funding.
• Once funded, Prosper will deposit the balance into your bank account.
• Make monthly payments toward your loan balance until it’s paid off.

Conclusion:

Prosper loans provide flexible financing for those who may not qualify with traditional banks. Compare interest rates and fees to other peer-to-peer and online lenders. Make sure you’re comfortable with the application process and repayment terms before moving forward. For borrowers with fair or good credit, Prosper personal loans can be a viable borrowing option.

FAQs: