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 offers pre-approval with a soft credit check.
- Small-dollar loans of $2,000 or more are available.
- Joint personal loans are available.
- Prosper charges an origination fee on all loans.
- Borrowers must have a credit history of at least two years.
- Co-signers are not accepted.
What Can Prosper Loans Be Used For?
Prosper allows borrowers to use their personal loans for a variety of purposes.
- Debt consolidation
- Home improvement
- Special occasions
- Medical expenses
Borrowers cannot use Prosper loans to repay student loan debt.
What Are Prosper’s Loan Terms, Fees and Discounts?
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 Closing fees are immediately withdrawn from the loan amount before money is transferred to your account.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.
How Can You Qualify for a Prosper Loan?
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.
Personal Loan Finder
Select your desired loan amount and loan purpose, your credit score range, and your state to see estimated annual percentage rates and loan terms.
How Long Does Prosper Take to Deposit Money?
Money is deposited into your bank account within a few days of loan approval.
What Credit Score Do You Need for Prosper?
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:
- Meet FICO score requirements
- Have an annual income of more than $0
- Have at least three open forms of credit
- Have fewer than five credit report inquiries during the previous six months
- Not have filed for bankruptcy in the last 12 months
- Have a debt-to-income ratio of less than 50%
Is Prosper Reputable?
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.
What Is the Prosper Loan Application Process Like?
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.
What Are Some Additional Features of Prosper Loans?
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.
Prosper Personal Loans Are Best for:
- Borrowers with fair to excellent credit
- Those with a credit history of at least two years
- People who need to borrow as little as $2,000
- Individuals who prefer to access a marketplace of loan offers
FAQs About Prosper Loans
Q: Is Prosper a good lender?
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.
Q: What is the minimum credit score for a Prosper loan?
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.
Q: How long does Prosper take to approve a loan?
A: After you complete a loan listing, which is a request for a Prosper loan, the company says approval happens within a few days.
Q: How do you qualify for a Prosper loan?
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.