Features

Prosper, one of the largest peer-to-peer lending marketplaces in the United States, provides customers who have good credit with a fast way to borrow money at low fixed interest rates. The company is based in San Francisco, California, has more than 2.2 million members and has furnished over $5 billion in loans.

How Does Prosper Work?

As a peer-to-peer lending platform, it uses crowdsourcing to connect borrowers with individual investors who have access to the credit scores, ratings, and histories of borrowers. Investors may also decide who to lend money to based on the profile descriptions of borrowers, community affiliations and endorsements from friends.

What Are Prosper's Interest Rates and Fees?

Prosper's rates range from 5.99% to 36% APR. Prosper generates income by charging borrowers a one-time fee for every loan and an annual loan fee to investors. Every borrower must pay an origination fee that ranges from 1% to 5% of the loan amount and is deducted at the beginning of the loan. For instance, if you borrow $5,000 and have a 5% origination fee, you will only receive $4,500, but you will have to pay interest on the whole $5,000. Consider this when deciding how much you need to borrow.

What is Prosper's Application Process Like?

Prosper loans do not require any collateral, and you can use the money for practically any purpose: including debt consolidation, an auto loan or a short term bridge loan. There are no prepayment penalties, so the sooner you pay off the loan, the less interest you will pay. If you provide all the required information and documentation, you can expect to receive a reply to your application within two to four days.

What is Prosper's Eligibility Criteria?

If your credit score is above 640, you can apply for loans ranging from $2,000 to $35,000. However, borrowers with lower credit scores may only qualify for smaller loans and will pay higher interest rates. Borrowers may request loan terms of up to 5 years, but the longer the loan terms, the higher interest.

Prosper as an Investment

If you are interested in becoming a peer-to-peer lender, Prosper is a particularly good choice. Depending on your risk tolerance, you can make anything from 5% to 10% interest on your savings, which is considerably higher than the 4% to 5% offered by Lending Club.

How is Prosper's Better Than Other Lenders?

Prosper provides borrowers with an attractive alternative to conventional banks and credit cards. The interest rates are competitive; the approval rates are fast, and the money is directly deposited into your account. Interest is based on the current loan balance, so there is no penalty for paying the loan early.

  • Credit bureau reporting
    Experian
  • Interest APR
    5.99% - 36%
  • Joint loans available
  • Loan Amount
    $2000 - $35000
  • No late fees
  • Max Loan Term (Months)
    60
  • Lend to military?
  • Origination Fee
    0.5% - 4.95%
  • Institution Type
    Peer to Peer Lending
  • Approval Speed (Hours)
    192
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0 votes

I don't want to sound like I am gushing but... Prosper is the easiest company *by far* that I have ever dealt with when trying to obtain a personal loan. It was easy to get approved & funded and all of my payments have been properly processed. Interest rates are very fair too. Highest recommendation!


0 votes

I've not used them before, this is my first time. So far , so good.


0 votes

Funded my loan quickly and got a very good rate! I am a very qualified buyer so I'm sure it wasn't that difficult however some other companies still give you the runaround when Prosper does not. Website is easy to navigate and kept me updated. Have used twice now and will use again!


0 votes

I was able to consolidate multiple Credit Cards which helped to lower my overall out of pocket costs per month. Great rates and an extremely easy process.


0 votes

This will begin to free me of credit card debt and further educate myself of keeping my books balanced and paying my cards on-time.


0 votes

I will definatly recommend This sevice for anyone looking a personal loan, No hassel....fast and easy!!


0 votes

The process was very easy and simple! Filled out the application, submitted it and the next day my loan was funded. 3 days after I had the money in my bank account! The interest rate was better than a lot of other sites offer and I have a good credit score. Do read the contract carefully so you understand exactly how the process works! In the contract they tell you how much they are charging you for the service which the amount depends on the amount of the loan you ... apply for. They simply take this out from the loan they will give you so you will receive a bit less than what you apply for. They also tell you exactly how much you will be paying in interest if you just pay the minimum every month but we all know it is better if you pay it faster so you dont end up paying a lot of interest. Overall, great, simple, and fast prcoess! More Less


0 votes

Needed it to pay off my PayPal Credit and got the job done. Recommend it!


0 votes

The pre-approval process was quick, and it's a "soft pull" so I had the opportunity to look and think about my offers. I decided to go with Prosper, and I've been very pleased by the process. I spent no more than ten minutes total on paperwork, and all of the requirements were very clear and easy to understand. I applied for my loan on Friday, received a request for bank information on Saturday, my loan was funded on Sunday, and the money was in my bank account on Wednesday. The website ... interface and payment portal are well-designed and easy to use. I had a very positive experience from top to bottom, and I wouldn't hesistate to borrow from Propser again. More Less


0 votes

It was pretty easy to get my loan. The only complaint I would have is the inability to send an email to an actual person. Everything is automated, so you have to call customer service if you have questions or a problem submitting documents. But my loan was approved quickly and the money was in my account within 2 days.


0 votes

I'm very diligent when it comes to credit; I check mine everyday. Score was tethering on 683-700 but had 68% CC utilization, mortgage, school loans. Applied almost impulsively after dwelling so much on pre-approval offers. Friday 10pm = application


0 votes

Applied on the 27th and money in my bank account by the 30th. Easiest process. Everything was done online, never had to call or do physical paperwork. The online process was easy, though I suggest going into the Proper site to check on messages or events as I think my emails were not routed properly due to a program I had on it, not prospers fault. Once I knew they sent a message I could find it. I would highly recommend them and use them again in the future ... if need be. More Less


0 votes

Like most other reviews, I, too, had an excellent experience. Got a rate less than 6% and paid off credit card debt at 11 & 13%, so it was a good deal. The monthly pmt is the exact same amount I was paying on credit cards BUT the Prosper loan will be paid off in 3 years, not 23 years like the credit cards. Will use and recommend them in the future.


0 votes

Prosper is great, they work with you in every aspect and they walk you through every step of the way, which I think is really important because most people can be clueless and sign away something they may not want to. Everytime something comes up they're just a phone call away and they will not hesitate to help you. No machines, no holds, no problems. Prosper is a great company.


0 votes

My application process a bit problematic. Even with high speed internet and zero bugs, the actual "processing" time took a bit longer than expected. I contacted customer service and they were so apologetic and helpful. They were absolutely amazing and genuine. I've had loan companies in the past who couldn't care less about their customers. I also received the money quickly after everything had fully processed.


0 votes

Great loan experience. I had expected a long application time, so that wasn't a surprise. Not as bad as applying for a mortgage, though! I had asked for $`10,000, which I did get. I also got an interest rate that was just a llittle higher than I had budgeted for, but not enough to make a difference. I am glad that I applied for a loan with them and not the place I used to use.


0 votes

I have had a previous loan paid it off then was sent several e-mails asking if I need another loan and when I applied I did not qualify. Nothing has changed my credit score is still the same, my debt to income is the same. I have not changed jobs so what is the problem?


0 votes

I can't speak highly enough about the experience of utilizing Prosper Personal Loans. Between the smooth experience, and great staff, A+ all around! Highly recommend


0 votes

I don't have anything too bad to say about Prosper, but I have had better experiences at other lending places. They are fair and have decent rates, but if you do your homework you can get a better deal somewhere else.


0 votes

I have good credit, but not great. My wife and I filed bankruptcy a few years ago and have been trying to rebuild our credit ever since. I applied for a $25,000 loan and despite my credit imperfections, I was approved. I sent the paperwork they requested and had money in my account two days later. Awesome experience.


0 votes

I ended up choosing Prosper as a last minute lender, since some of my friends had used it and had gotten their loans quickly. I submitted my application, received an approval the next day, and the funds were in my account the day after that. Everything had been smooth sailing, until I had a few questions and called customer service. The representative was belligerent and rude, not really caring about my question. Other than that, my experience has been fine. Luckily, I haven't had to call customer service for anything ... else. More Less


0 votes

If youre a fan of peer-to-peer lending, Prosper is one of the best companies out there. But the peer-to-peer lending model leaves a lot to be desired, at least if you have privacy concerns. Like all peer-to-peer lenders, Prosper requires users to post detailed profiles that include a lot of personal info. Once youve posted your profile, you have to hope that enough people make contributions to fund your loan, which doesnt always happen. Even when it does, the process can take weeks or even longer. If your credit is ... bad, you wont qualify anyway. All reasons to give Prosper a miss. More Less


0 votes

This is a great option if you have tons of credit card debt and need a more affordable option! I wasn't able to keep up with my monthly credit card payments with the high interest, and decided to get one loan to pay them all off. That way, I'd just have one monthly payment. Prosper's interest rates are great compared to others I've seen. I'm now able to keep up with my monthly bills, and it's great.


0 votes

I'm not sure if I completely skipped this during the application process, but apparently Prosper takes a small fee from the loan before it is deposited into the bank account. I was pretty shocked when I saw this, because I had applied for the EXACT amount I needed. It was pretty frustrating coming up with the rest of the money. But other than this misunderstanding, the process has been easy and I haven't had any other issues.


0 votes

I needed a way to consolidate my debt, and looked around for a personal loan. I was juggling four credit cards, along with two loans from college. With the combined interest, the monthly payments were insane. I was approved for a $20k loan, and immediately used it for my other debts. The interest isn't the lowest I've found, but compared to what I was paying before, it was a god send.


0 votes

I've been using Prosper for a few years now, and have been a very satisfied customer. Recently, the company has changed some things, such as their online payment system. Oh my god, it is terrible. Before, it was such a simple process. After calling the company, I was told that it was a temporary issue, and that it will be resolved. The next month, the same thing. After calling again, I received the same answer. If you're new to Prosper, I don't recommend using the online payment system.


0 votes

The application for Prosper is by far the easiest and most efficient that I've seen. The day I submitted my application, I also submitted a voided check using my smartphone. I wasn't quite sure what a peer to peer lender was, and was slightly skeptical, but decided to give it a try after a friend applied for a loan with this company. I received the loan straight to my bank account in two days, and it couldn't have been easier. So pleased.


0 votes

I shopped around before taking out my loan and tried to find the best interest rates for the amount I needed. Prosper was not the top choice, but I ended up going with them after the other option fell through. The entire process from start to finish only took a few days, and submitting the paperwork they needed was simple.


1 votes

I didn't want to apply for another loan because most of my past experiences with "pre-approved" loans have been disappointing. But Prosper ended up coming through for me. I have had some problems with their customer service in the past, but all in all, this has been a positive experience for me.

1 votes

I was sanctioned for a credit however can't get on to acknowledge. I reached client benefit 4 times. I've utilized 3 diverse pc's 2 programs and 2 wifi' without any result. In the event that I can't overcome to acknowledge the advance on the grounds that it keeps on looking and the best way to acknowledge is on the web. (They won't do it over email or fax or sweep) then no credit for me. Ok has no cash for them either. Lost a client people.


0 votes

Fabulous company. Easy to apply. I got my loan money within 24 hours. Good interest. Good customer service. A whole lot to love about this lender!


0 votes

Needing a loan fast can sometimes skew your judgement and you may find yourself borrowing money blindly and then worrying about the consequences later. I admit doing this with Prosper. Fortunately they are a good company, so I didn't have a borrowing hangover when I finished.


0 votes

Great customer service everytime. I got a fabulous interest rate thanks to the fact that I had a good credit score.I would recommend them to anyone who needs quick cash.


0 votes

Needed some cash for my kid's Christmas presents. Last year's holidays were bad and I'd promised good one this year. Of course, short on cash again, but then I found Prosper. My kids were ecstatic, and I was happy to get the money at a good interest rate.


0 votes

I dont know what all the fuss is about I applied for a loan and got instant approval. They needed some documentation from me to verify some information, and once I sent that to them I got my money the next day. I even had a pleasant call with a customer service representative. I would recommend this company to others.

0 votes

I couldn't request a simpler process. Rates are reasonable for an unsecured credit line. on the off chance that you have to pay off high interest/fee charge cards, this is the best approach! i required $20,000 to take care of a financial obligation and had a hard time finding anyone to loan me the money because of my credit score. Prosper was there when I needed them and I had my money in just a couple days.

1 votes

Propser was one of the first, if not the very first peer-to-peer lender to emerge on the scene. If you have a compelling reason for borrowing money and decent credit, you can probably find the funding you need at a reasonable interest rate. if your credit is subpar, you need not apply. Also, if you are uneasy about sharing intimate details of your life with the general public, Prosper may not be a good choice for you. You must be prepared to put your business on front ... street, as they say. That includes personal details about your background, how you intend to spend the money, and any information that you can add that will enhance your credibility. you should also have ready access to a computer with Internet access, as all of Prosper's business with borrowers is conducted online. As an investor, you can be reassured in the knowledge that each borrower has been vetted and is at least minimally credit worthy so the risk of losing your money is minimal. That said, Prosper should not be your major form of investment. More Less

1 votes

For borrowers with at least fair credit and a sympathetic back story, peer-to-peer (P2P) lender Prosper loans represent a viable option for financing. Borrowers are subjected to a vigorous vetting process, including a stringent credit check and verification of the details of lending requests. Prosper is not a viable loan venue for borrowers who need money immediately. Likewise, individuals who are squeamish about sharing personal details with complete strangers should consider another financing option. Would-be borrowers who live in Iowa, Maine and North Dakota are also out of luck. On ... the other hand, borrowers who are diligent about adhering to the various requirements and active about promoting their campaigns stand the best chances of receiving funding.

Average Joes and Janes with cash to spare can also participate in the Prosper model as lenders. Because of the strict screening and vetting process to which borrowers are subjected, lenders have a reasonable assurance against loss of their initial investment. With prudent lending choices, balancing risk (higher interest rates) against creditworthiness (odds of prompt repayment), lenders can reap significant earnings while basking in the satisfaction of knowing that their funds are assisting other “real” people.

Professionalism

As the world's largest P2P lender with more than 1,180,000 members and over $277,000,000 in funded loans as of November 2011, Prosper has refined the peer-to-peer lending process down to a science. Prosper's management team includes officers holding expected titles such as CEO, Chief Marketing Officer, General Counsel and Chief Compliance Officer and Chief Risk Officer. As an accredited business with the Better Business Bureau since November 2012, Prosper Loans holds an A+ rating.

On the other hand, Prosper operates strictly online. Borrowers and lenders must have access to a computer with Internet access. Because of the sensitive nature of documentation required for Prosper loans, using public computers (say, at a library) or unsecured Wi-Fi connections (such as at a coffee shop) is not recommended.

Lending and Pricing Model

Borrowers can seek loans range from a minimum of $2,000 to a maximum of $35,000. Borrowers must also indicate their credit rating (Excellent: 760+, Good: 700+, Fair: 640+ or Poor: Under 640). Borrowers who indicate that their credit scores are under 640 are directed to the AmOne website for alternate loan options. However, even borrowers who indicate that their scores are satisfactory must still agree to undergo a credit check.

Lending rates for Prosper loans range from 6.05% interest and 9.44% APR for borrowers with Prosper's highest (AA) rating to 29.24% interest and 34.59% APR for borrowers with Prosper's lowest (HR) rating. Borrowers must also pay closing costs which are deducted from the loan principle. Investors (lenders) can expect “seasoned returns” for lending notes more than 10 months old of 8.89%. All loan terms are for three years.

Loan Categories

- Debt Consolidation - ‘Home Improvement - Business - Auto - Motorcycle - Recreational Vehicles - Boat - Medical/Dental Expenses - Vacation - Household Expenses - Baby and Adoption Loans - Engagement Ring Financing - Wedding Loans' - Large Purchases - Taxes - Green Loans

Borrowers are encouraged to be transparent in describing their personal and financial circumstances within their profiles. Borrowers must receive funding pledges of at least 70% of their desired borrowing amount to receive any money. Successful borrowers must make monthly payments that include principle, interest and loan servicing fees. Lenders receive a portion of the monthly payments for each successful loan that they have financed as direct deposits into their bank accounts.

Conclusion

Prosper is a good option for a subset of borrowers in the middle of the credit score spectrum. However, borrowers with the best credit profiles will likely find more favorable borrowing terms through a bank or credit union, barring a steep rise in interest rates. Privacy concerns and a need for “campaigning” also detract from the attractiveness of the Prosper model. On the other hand, lenders will often receive a decent return on their money, although no one should expect to retire based on their Prosper earnings.
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1 votes

I recently got a loan from Prosper, to consolidate some debt. The paperwork part of the process was pretty straight forward. The customer service aspect was a b it more difficult however. I only needed to call once for a billing error, but that was more than enough bad customer service for me. I got shuffled through countless people trying to get someone on the phone that could help me with the billing issue. really un organized t headquarters. I would recommend the loan process, and warn against ... the customer service. More Less

1 votes

We just applied for a $25000 loan on 10/13/2013. Did an easy application on line and was fully funded the same day it posted. The following day we Received a few emails requesting information such as W2, pay stub, & bank statement. I faxed as soon as I got the email and was able to see on the web site that they received (under history tab). Received a phone call on 10/15/2013 to go over the terms & personal information. Today is 10/16/2013 and we received an email stating ... we are approved & funds will be in our account tomorrow.

Not sure why there are so many negative reviews because the process was very quick for us and the customer service is outstanding. We are very happy with Prosper's loan process and attention to properly identifying us.
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