Prosper Review - Personal Loans

Application & Approval Process
9.0/10
Rates & Fees
9.0/10
Payment Terms
9.0/10
Customer Support & Benefits
9.0/10

About Prosper

Established in 2005, Prosper became the first peer-to-peer lending marketplace to be set up in the United States. While it was initially welcomed with relatively poor reviews, it has since developed a strong foothold in the market and established a reputation for helping customers from all backgrounds to find suitable and affordable loan options to match their requirements. 

While peer to peer loans are not the most popular form of lending on the market, Prosper does a great job by offering competitive rates for those with a fair credit rating and above with a fully transparent application process. At the time of writing, they have helped to fund $17billion between just over 1 million people.

Through Prosper, borrowers are able to match with investors who offer loans of up to $40,000 from as little as 7.95% APR. However, it is worth noting that the loans have a maximum term of 5 years, which is on the short side when compared to some of the other lending options.

The peer to peer lending model works in a way that it encourages lenders to propose attractive rates to would-be borrowers, creating a thriving and healthy ecosystem. Those who have poor credit will most likely have a difficult time getting accepted onto Proposer’s system, which is why it is suggested you possess a fair credit score and above (640+). While some of the fees are low, it’s important to consider the origination fee that Prosper charges for their service. This ranges from 2.41% – 5%.

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Excellent

9.0/10

Pros

  • Low rates for those with 640+ credit rating
  • Pre-approval with no credit check
  • Great customer support
  • Joint loan options

Cons

  • Limited loan repayment terms (36 – 60 months)
  • Origination fee (2.41% – 5%)

Key Highlight

  • Unsecured personal loans offered for a wide variety of purposes – no restrictions on how to spend the money.
  • Prosper is an excellent choice for borrowers with a fair/good credit rating of 640+.
  • Prosper’s peer to peer marketplace offers a great alternative to the traditional lending methods.
  • 100% online application process that is transparent throughout.
  • No early payment fees. If you decide to pay the loan off before the agreed date, you can do this free of charge.

Application & Approval Process

Application

The application process with Prosper is unique when compared to its competitors. Firstly, you must visit their website and click through to “Check Your Rate.” 

This phase of the application will not affect your credit score as the process does not require a hard credit check. Instead, loan seekers must fill out the online application form which will then subsequently be posted to the community for potential investors to review and commit their funds towards. On average, the process takes around 3-5 days from start to finish. 

After clicking through, you will be guided you through a straightforward form asking for necessary details, such as:

  • Loan amount
  • Purpose of loan
  • Preferred loan options (sole/joint)
  • Personal information such as your name and address
  • Basic income details
  • Credit information

Once you have completed this stage, you will enter the “pre-approval” stage. This is where you will have access to potential rates and terms. At this point, these are not real offers. They are simply an estimation of what you will likely receive.

Approval

The next stage is to complete a full application and place an active loan listing on Prospers’ peer to peer marketplace. This will allow potential investors to review the application and decide whether or not they want to commit their funds to the agreement or not. Some basic requirements must be met before borrowers can access this section, such as:

  • A debt to income ratio of less than 50%
  • At Least a fair/good credit score of 640 (Proper uses TransUnion to obtain your credit score in the application process)
  • No bankruptcies in the last 12 months
  • Minimum credit history of 2 years
  • No more than six individual credit bureau inquiries in the previous six months

If all of these criteria are met, then the loan will be posted upon the marketplace where Prosper will run a full credit check.

Agreement

Finally, once the loan application is approved and the borrower is matched with a lender who is willing to commit their funds, then the two parties enter into an agreement. The loan funds will then be dispensed into the borrower’s account within five days. From this point, all payments will be serviced by Prosper and not by the investor.

When the loan is agreed upon between the two parties, an origination fee of 2.41% to 5%, is added on to the total amount. This rate varies depending on the borrower’s credit score and individual requirements.

The application expires if your loan request isn’t at least 70% funded within 14 days.

Rates & Fees 

As prosper offers a peer to peer marketplace, rates vary between different agreements and largely depend upon the credit score of the applicant and the amount of money that they wish to borrow.

The lowest rate starts at 7.95%, with the highest being 35.99%. While most of the rates are usually weighted towards the high end, there are still plenty of great loan rates to be had by savvy borrowers.

Payment Terms

All payment terms are agreed upon beforehand and are dealt with Prosper directly. There is no contact between borrower and lender/investor. 

The payment terms with Prosper and non-flexible. Once they have been agreed upon, they remain in place until the loan maturity date. On top of that, there are late payments fees of $15 or 5% of the unpaid amount, if the borrower is more than 15 days late on their payment. There is also a fee of $15 for instances where there are insufficient funds in the bank account when payment is due.

Customer Support & Benefits

For customers that wish to contact Prosper, they can do so via phone or email. Their toll-free phone support has separate lines for both borrowers and investors. The lines are open from 8 AM to 9 PM Monday through Friday, and 9 AM to 5:30 PM on Saturdays.

There is also a help center on the website that offers extensive information to borrowers and investors over the process and other FAQs that people may have in areas such as the application process, payment, waiting times, returns, and more.

Contact Details

Address: Prosper Funding LLC, 221 Main Street, Suite 300, San Francisco, CA 94105

Phone: 1-(866) 615-6319

Email: [email protected]

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Excellent

9.0/10

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