Prosper Personal Loan Review 2024: FAQs, Pros and Cons
Personal loans are a financial tool that you can put to work in a variety of ways.
You might need a personal loan to get caught up on bills if you’ve fallen behind because of a job loss. Or you might use a personal loan to consolidate high-interest debt so you can pay it off faster and save money on interest.
Having access to personal loans can provide some financial peace of mind if an unexpected expense arises.
A Prosper personal loan is one option for getting a personal loan online. Founded in 2005 as the first peer-to-peer lending marketplace in the U.S., the platform has helped 1.14 million borrowers secure more than $19 billion in loan funding over the years.
But is it right for you? Our Prosper review offers a closer look at how this company’s personal loans work.
Pros and Cons of Prosper
When comparing the best personal loan options, it’s important to consider the advantages and potential disadvantages, if any. In this Prosper review, we’ve highlighted the most important pros and cons of borrowing through the platform.
Pros
- Prosper offers personal loans ranging from $2,000 up to $40,000
- Borrowers can choose between 3- and 5-year loan repayment terms
- Funding as soon as one business day after approval once all requirements completed
- Checking your rate won’t affect your credit score
- No prepayment penalties for paying loans off early
Cons
- Some personal loan lenders may offer higher borrowing limits
- Customers may pay loan origination fees
- Loans cannot be used to pay for college tuition or expenses
- Limited repayment term options
- Autopay discount not offered
Who Is a Prosper Personal Loan For?
Prosper may be a better fit for some borrowers than others. When comparing personal loan lenders, it’s helpful to find one that checks off most or all of the boxes on your list in terms of features and benefits.
With that in mind, Prosper could be good for people who:
- Need to borrow between $2,000 and $40,000
- Want to get an unsecured personal loan
- Don’t mind the possibility of paying a loan origination fee
- Are looking for a personal loan with a fixed rate
- Want to take out a joint personal loan with a co-borrower
One thing to note is what Prosper loans can be used for. As mentioned, you can’t use these loans for college expenses. But you can use Prosper personal loans for any of the following:
- Debt consolidation
- Home improvement
- Medical and dental expenses
- Large purchases
- Vehicle purchases or repairs
- Household expenses
- Special occasions
- Starting or funding a business
- Paying taxes
- Vacations
- New baby expenses
Overall, Prosper is pretty flexible when it comes to how you can put loan proceeds to work.
Not sure which loan is best for you? We can help. Get matched with loans, compare rates, and choose a lender now.
Top Features of Prosper
Prosper is a peer-to-peer lending marketplace that connects people who need to borrow money with investors who are able to fund loans. So if you apply for a loan here, you’re getting a loan from one or more investors, with Prosper acting as a go-between.
In terms of what people seem to like best about Prosper, the top features include:
Competitive loan amounts
A single Prosper personal loan can allow you to borrow up to $40,000. That may be sufficient to fund any number of financial goals, from paying off debt to consolidating credit card debt.
Joint loan option
Prosper allows creditworthy borrowers to apply for a joint personal loan. The better your credit scores, the lower your rates are likely to be if approved.
Check rates without affecting credit
You can get a rate quote from Prosper without triggering a hard pull of your credit report. That means your score won’t be impacted unless you decide to move forward with a full Prosper loan application.
Next day funding
If approved for a Prosper personal loan, the funding can be deposited into your bank account as quickly as one business day. That’s important if time is of the essence and you need to cover an emergency expense.
No prepayment penalty
Paying off a personal loan early could save some money on interest. Prosper won’t charge you a prepayment penalty if you decide to clear your loan balance ahead of schedule.
How to Apply for a Prosper Personal Loan
Prosper makes it as simple as possible to apply for personal loans online. The first step is checking your rate. To do that, you’ll need to tell Prosper:
- How much you want to borrow
- What the money will be used for
- Whether you plan to apply individually or with a co-borrower
- Your name and email address
- Your date of birth
Once you’ve created your profile, Prosper will review your information and present you with loan offers.
If you want to proceed, you can move on to the full application process. At this point, you’ll be asked for additional information, including your income, driver’s license number, and Social Security number.
Getting your rate won’t affect your credit, but applying for a loan can. Prosper uses a proprietary rating system for determining loan approvals and interest rates. This system is based on your credit history, income, and other financial information. Prosper generally looks for borrowers with a 640 credit score or higher.
Loan applications are subject to a review process, which can take around five business days.
Once loans are approved, it’s possible to receive next-day funding.
Find Lenders Who Will Work With You
Finding the lender who will work to find the best personal loan to meet your needs is simple and fast. Compare loans picked for you and see the best rates being offered today.
Rating the Features
Throughout this Prosper review, we’ve touched on what’s good (and sometimes not so good) about this platform. Here’s a rundown of how Prosper’s key features rate.
User experience
Prosper’s website is easy to navigate, and getting a quote is simple. You just have to plug in the aforementioned information to get quotes delivered to your inbox. From there, you can decide which loan offer you want to apply for to start the full application process and go through the five-day loan review.
Prosper does have a mobile app, but it’s only for investors who are funding loans. So if you’re a borrower, you’ll need to use the desktop site to manage your account.
Fees and rates
In terms of fees, Prosper can and does charge origination fees for loans. This fee is 2.4% to 5% of the loan amount, based on your Prosper rating.
Additionally, Prosper charges fees for paying by check, paying late, or having insufficient funds to process a payment.
- The check fee is $5 or 5% of your payment, whichever is less.
- The fee for late payments is $15 or 5% of the late payment amount, whichever is greater.
- The insufficient funds fee is $15. There is no prepayment penalty.
- Prosper gives its lowest rates to the most creditworthy borrowers.
- There is no rate discount for autopayments.
Transparency
Prosper does give you a chance to see the rates you might pay for a loan before you move forward with a full application. And if you’re offered a loan, you’re not obligated to follow through with it if the rates or repayment terms don’t work for you.
There’s an online Help Center that features answers to some of the most commonly asked borrower questions.
You can also contact Prosper by phone or email if you need help.
Flexibility
Prosper offers personal loans of up to $40,000, with a minimum loan of $2,000. Again, these loans can have three- or five-year repayment terms, and you can choose what you’d prefer.
Your first loan payment is due the month after the day funds are sent to your bank. But if you need to change your payment due date, you can do that by logging into your Prosper account online.
It’s worth noting that Prosper loans are only available in certain states. As of 2021, you can’t apply if you live in West Virginia or Iowa.
Customer support
As mentioned, Prosper’s mobile app is just for investors. So if you’re looking for a personal loan you can manage from your mobile device, you may need to look elsewhere.
If you need help, Prosper is available by email or phone. The Help Center is available at 1 (866) 615-6319 Monday through Friday, from 9 a.m. to 8 p.m. ET, and Saturdays, from 9 a.m. to 5:30 p.m. ET.
Bottom Line
A personal loan could help to fill a short-term funding need or make it easier to pursue your long-term financial goals.
Prosper could be a worthy candidate for getting a loan if you’re comfortable going through a peer-to-peer lending marketplace and you don’t need to borrow more than $40,000.
Checking your credit beforehand can give you an idea of how likely you are to qualify for a Prosper personal loan, and crunch the numbers with an installment loan calculator to make sure a personal loan payment fits into your monthly budget.
Frequently Asked Questions
Get the answers to some common questions you may have about personal loans.
It isn’t difficult to get a Prosper loan for many people. You need only have a credit score in the “fair” range and a regular income to be considered for a Prosper loan. You will need to fill out an application and gather the information you need in order to fill out your application completely, but AmONE is here to help if you have any issues or questions while filling out your application.
It’s much quicker to get a Prosper personal loan than a home equity loan, but it still takes about a week from your initial application to being approved and receiving your money.
Yes, Prosper will consider joint applications. This means that both applicants would hold equal responsibility for paying off the loan.
