Prosper Personal Loans Review 2020

Prosper is a leading marketplace lending platform for consumer loans. Prosper’s online lending platform connects people who want to borrow money with individuals and institutions that want to invest in consumer credit.

Founded in 2005, Prosper Marketplace, Inc. is headquartered in San Francisco. Loans that are originated through the Prosper marketplace are made by WebBank, member FDIC. Prosper has more than $11 billion in cumulative originations since its inception in 2005.

Prosper Loan Rates & Terms


APR range:	7.95%—35.99%
Available loan terms:	36-60 months
Loan amounts:	$2,000—$35,000
Time to fund:	One day
Origination fee:	2.41%–5%
Credit needed:	620+
Income needed:	Varies
Soft Credit Check?	Yes
Best for:	Those with a steady income
Click "Check Rates" to apply to Prosper Check Rates

» MORE: Read our side-by-side Comparison of Upgrade vs Prosper & LendingClub vs Prosper

Prosper personal loan review

Prosper has an A+ rating from the Better Business Bureau. Prosper offers two types of consumer products -- fixed-rate, fixed-term personal loans for borrowers and investments in consumer credit personal loans for individuals and institutions.

Personal loans from Prosper come with terms of 3 to 5 years. They are single monthly payment loans and there are no hidden fees or prepayment penalties. Interest rates are based on customer credit.

Investors in Prosper may select individual loans to invest in or use an Auto Invest tool to build their profile based on the criteria they select. Investors in Prosper enjoy monthly returns on their investments.

On the loan side, all Prosper loans are simple interest, fully amortized loans. Annual percentage rates (APRs) through Prosper range from 7.95 percent APR to 35.99 percent APR, with the lowest rates reserved for the most credit worthy applicants.

Prosper targets people with fair to excellent credit. They use their own credit-scoring system, coupled with traditional credit scores, to decide whether to approve an application.

Here’s how your loan might look:

A three-year, $10,000 loan with the top Prosper rating of AA would have a 7.95% APR and a 2.41% origination. You’d receive $9,900 and make 36 scheduled monthly payments of $302.
A five-year, $10,000 loan with a Prosper rating of A would have a 9.88% APR and a 5% origination fee. You’d receive $9,500 and make 60 scheduled monthly payments of $201.28.

See Prosper Offers

The biggest benefits

Qualify with lower credit. Applicants with scores as low as 640 may be consider, though the best rates are offered to those with excellent credit.
Pre-qualify with a soft credit pull. Your credit isn't affected when you check your interest rates.
No prepayment penalty. Prosper loans come with terms of 3 or 5 years. They are single monthly payment loans and there are no hidden fees or prepayment penalties.
Multi-purpose loans. Loans from Prosper have been used for debt consolidation, large purchases, home improvement projects, medical expenses and more.
APR.The lowest APR available is an attractive and competitive 7.95%, which is much less than the typical APR for a credit card.

The drawbacks

Late fees. You might have to pay a late fee of $15 or 5% of the amount due, an insufficient funds fee of $15 or a check processing fee if you opt to pay by paper check.
APR based on credit score. Those applicants with excellent scores will likely be eligible for an APR of 7.95%, while those with less-than-perfect credit may qualify for up to 35.99%.
Origination fee. Prosper’s APR includes an origination fee of between 2.41% and 5% of your loan amount, which it deducts from your loan amount before you receive your funds.
Potential to go unfunded. Investors have to commit to your loan within 14 days of listing. If this doesn’t happen, you will have to create a new listing and begin again.
Loan Process. Prosper evaluates each loan application through a proprietary rating system, which makes the approval process slightly mysterious.

How Prosper Compares

Prosper’s APRs aren’t the lowest on the market, but they are relatively competitive, especially for those with excellent to good credit.

» MORE: Side-by-Side Comparison of SoFi Vs Prosper

Should you apply?

If you have solid credit, you’ve got a great shot at nabbing a low APR. And it's worth applying. But if your credit is lacking, you might be stuck with an APR as high as 35.99% and have better luck with another lender.