Prosper is a peer-to-peer lending marketplace that allows borrowers to apply online for fixed-rate, fixed-term loans. Prosper matches borrowers with partner investors including Sequoia Capital, Francisco Partners, Institutional Venture Partners and Credit Suisse Fund. Since its founding in 2005, Prosper has expedited more than $18 billion in loans. Prosper lends to borrowers with fair to excellent credit with a minimum 640 FICO score.

Prosper allows borrowers to use their personal loans for a variety of purposes.

Borrowers cannot use Prosper loans to repay student loan debt.

Prosper offers fixed-rate loans only, with a loan amount range of $2,000 to $40,000. Loan terms are available for three or five years. If you get a Prosper loan, you’ll typically receive funds within five days.

The closing fee is a percentage of the amount borrowed based on your Prosper Rating, which is based on your FICO score, credit history and factors like annual income and debt-to-income ratio. Closing fees are immediately withdrawn from the loan amount before money is transferred to your account. Prosper recommends accounting for this fee when planning for projects like a home improvement so you request to borrow enough money. Closing fees range from 0.5% to 4.95%.

Prosper charges $15 for failed payments or returned checks. Payments that are 15 or more days late are assessed a late fee.

Prosper has a minimum FICO credit score of 640 for its personal loans. It also has a maximum debt-to-income ratio of 50% and you must have fewer than five credit bureau inquiries within the last six months. Prosper also checks to see that your credit report has at least three open forms of credit recorded. Your income must be greater than $0, meaning Prosper requires that you are employed in some capacity. Also, Prosper does not offer loans to those who have filed bankruptcy within the last three months.

If you want to check out Prosper’s loan options, you can get pre-approved based on a soft credit check that will not affect your score.

Select your desired loan amount and loan purpose, your credit score range, and your state to see estimated annual percentage rates and loan terms.

Money is deposited into your bank account within a few days of loan approval.

Prosper requires a minimum credit score of 640, and AA Prosper-rated borrowers can get the lowest rates.

To qualify for a Prosper loan, you must:

Prosper has an A+ rating with the Better Business Bureau. However, the average customer review rating is 1.28 stars and people have complained about the company doing a hard pull on credit when the lender promised a soft pull. In 2020, the Consumer Financial Protection Bureau received 30 personal loan complaints about Prosper. Getting a loan and problems making payments were the most common complaints. All complaints were addressed with a timely response.

First, you’ll create a loan listing—a process that takes a few minutes and involves providing some personal information including income. This allows Prosper to check your identity and obtain your credit score with a soft credit check. Based on your credit history and information, Prosper will assign you a Prosper Rating (AA is the highest) that determines your interest rate.

The loan listing is your request for a loan and can be viewed by investors on the Prosper marketplace. Prosper recommends asking friends and family to give you a recommendation on the listing to increase your chances of having the listing fully funded. You might receive several loan offers from different investors. You choose the best offer.

Prosper offers joint personal loans that allows you to add a second person to a personal loan application as an alternative to a co-signer. This is helpful if you have a thin credit history or if you’ve been furloughed or lost a job due to COVID-19 or another life circumstance. Both borrowers assume responsibility for the unsecured loan and collateral is not required.

A: Prosper has an A+ rating with the Better Business Bureau and has been in business since 2005 as a lending marketplace that matches borrowers with investors. Prosper is a good lender if you have fair to excellent credit and need to borrow $2,000 to $40,000.

A: The minimum credit score for a Prosper personal loan is 640. However, you will not get the best interest rate with this score. Borrowers with a credit score of 790 or higher are more likely to get a Prosper rating of AA, which unlocks access to loans with the lowest fees and interest rates.

A: After you complete a loan listing, which is a request for a Prosper loan, the company says approval happens within a few days.

A: Prosper takes into account your FICO score, credit history and other factors like annual income, debt-to-income ratio and whether or not you have declared bankruptcy in the last 12 months. You should have at least three open forms of credit on your credit report, and fewer than five inquiries during the last five months.