Prosper Personal Loans: 2023 Review (2024)

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At a glance

Prosper is best for borrowers with fair credit who want to consolidate high-interest debt

Prosper was named Bankrate's best personal loan for borrowers with fair credit in 2024. Prosper's flexible eligible requirements can help borrowers with fair credit save money through consolidating existing debt.

Prosper is the only peer-to-peer lender among Bankrate’s best lender picks. The lender's model sets a much lower credit score requirement than many competitors. Plus, the lender allows co-applicants. Adding a co-applicant may help you qualify if you wouldn’t have otherwise. It could also help you land a higher amount or a lower rate that saves you money on interest.

Prosper personal loan purposes

Prosper’s array of loan products, including personal and home equity loans, can be used for the standard personal loan purposes. Borrowers may use the funds for everything from financing home improvement to vehicle purchases.

The lender’s flexible acceptance criteria and fairly low starting rate make their loans a particularly good fit for consolidating high-interest debt. Consolidating debts can reduce the amount of interest you pay and make it easier to keep up with payments. And if your credit improves while you repay a debt consolidation loan, you may be able to refinance to a still-lower rate with another lender.

As with most personal loans, borrowers may not use Prosper’s loans for post-secondary education expenses.

Where Prosper personal loans stand out

• Good online experience: Personal loans made by WebBank feature a streamlined online application process. You can receive the funds in your account in just one business day. According to its website, borrowers only need to provide basic personal and financial information to prequalify. Then, you can review your personalized loan offers and then choose the best terms for your financial situation.
• No prepayment penalties: You will not pay an an early payment penalty if you decide to pay the loan off early. What's more, Prosper offers a unique refund. if you prepay your loan, you may be entitled to a refund of any unearned portion of the origination fee that's over 5 percent of the original principal amount.
• Joint loan applications: Not every lender allows co-borrowers. Adding a creditworthy co-borrower gives applicants a better chance at qualifying for a loan and scoring a more competitive interest rate. In this case, both borrowers are held liable for the loan balance and are responsible for the monthly payments.

Where Prosper personal loans fall short

• Origination fee: Borrowers pay an origination fee between 1 and 9.99 percent, depending on their creditworthiness. Like most lenders, Prosper takes the origination fee from the loan balance immediately. Keep this in mind when applying, especially if you need a specific loan amount.
• High maximum interest rate: The interest rate is capped at 35.99 percent, making the personal loans relatively costly for borrowers with lower credit scores.
• No autopay discount: Unlike many other online lenders, Prosper does not offer a rate discount when you set your account for automatic payments. Autopay discounts typically knock off anywhere from 0.25 percent to 0.50 percent from a borrower's APR just for enrolling.

Prosper customer experience

Customer support

Users can receive assistance through Prosper's online messaging platform, over the phone, through email or by mail.

If you are not a current customer, representatives are available by phone at 866-615-6319, Monday through Friday from 5 a.m. to 5 p.m. PT. You can also email [email protected].

You can call 866-615-6319 from Monday through Friday between 5 a.m to 7 p.m. PT for questions about an existing loan. Existing borrowers can also email [email protected].

Digital experience

Prosper's application and pre-approval process is completed fully online with the option for assistance over the phone if necessary. Android and Apple users can also apply for a loan through Prosper’s mobile app. The app averages 4.6 of 5 stars after 3,440 reviews on the Google Play store.

While it doesn't have in-person support, the lender's online Help Center has a plethora of resources for new and existing Prosper customers. Plus, if you'd rather not speak over the phone or wait for an email response, the lender lists general and product-specific FAQs.

What people are saying about Prosper

Of Prosper’s over 12,700 reviews on Trustpilot, 83 percent are five-star as of June 12, 2024. Many comments praise the company for its easy application process and fast service.

"Really ease application process and easy to track if loan is approved. Staff is extremely helpful and friendly."

— Trustpilot User

Most negative reviews concern getting preapproved for higher interest rates than what they were offered after applying.

Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate. Please see the issuer’s website for updated terms and conditions.

Prosper vs. Happy Money

Just like Prosper, Happy Money offers debt consolidation loans. But unlike Prosper, Happy Money does offer borrowers the option to pay their creditors directly, for a smoother process. Its minimum credit score required is 640, the same as Prosper's. That said, Happy Money’s loans are specifically designed to pay off credit card debt, so if you have other types of unsecured debt you’d like to consolidate, then Prosper is the better choice.

Prosper vs. Upstart

Upstart offers personal loan amounts similar to those of Prosper. But, if consolidating debt is your ultimate goal and you have fair credit or better, Upstart’s loans can definitely maximize your savings with its low starting APR. Upstart’s origination fee can be on the steep side, capped at 12 percent, which is something to consider when comparing loan offers from both lenders.

Do you qualify for a Prosper personal loan?

You may qualify for a personal loan through Prosper if you meet the following criteria:

• Income requirements: You must have a recorded income greater than $0.
• Credit score: At least 640.

If you’re a first-time borrower, you must meet several criteria.

• Debt-to-income ratio of no more than 50 percent.
• Stated income greater than $0.
• Must be at least 18 years old.
• Be a resident of a qualifying state.
• Must have a valid U.S. bank account and Social Security number.

Prosper allows for joint applicants (co-borrowers) but not co-signers.Co-borrowers may need to submit additional documentation and will need to satisfy following criteria:

• Minimum FICO score of at least 600.
• No bankruptcies filed within the last 12 months.
• Have at least one open credit account recorded.

How to apply for a personal loan with Prosper

Like other online lending platforms, Prosper aims to give prospective borrowers loan information in just a few clicks. Here’s how to get started:

1. Get a quote

Fill out basic identifying information, like how much you’re looking to borrow and what the money will be used for (debt consolidation is the most common use). Prosper will conduct a soft credit check, which won’t impact your credit rating, and provide you with potential loan offers within a minute or two.

Behind the scenes, Prosper gives your loan a letter grade: AA, A, B, C, D, E or HR for high risk. The lower the grade, the higher the corresponding risk and interest rate on the loan. Origination fees typically skew lower for those with a better rating too.

2. Add information and finalize your application

The company may also ask for supporting documentation to be uploaded to your account. In some cases, Prosper may call your bank or your employer to verify your information. The screening process typically takes about five business days.

3. Review the loan details

Investors decide if they want to back your loan by reviewing your information anonymously and choosing to fund all or, more often, a portion of your loan. In return, they receive a percentage back above their investment amount once you’re fully paid up.

It’s important to know that lenders have to be willing to fund your request. So even if you’re granted favorable terms in the application process, there is a chance you won’t get any money. If that happens, you can reapply by repeating the process. Keep in mind that if you’ve been late on a previous or current personal loan through Prosper, you may not get approved for another one.

Bankrate considers 20 factors when reviewing lenders. Credit requirements, APR ranges, fees, loan amounts and flexibility are all taken into account so that ratings are representative of how competitive lenders are for a wide range of credit profiles and budgets. The Bankrate Score for personal loans consists of four categories:

• Availability: What the minimum loan amounts are, its eligibility requirements and loan turnaround are considered in this category.
• Affordability: The interest rates, penalties and fees are measured in this section of the score. Lower rates and fees and fewer potential penalties result in a higher score.
• Customer experience: This category covers customer service hours, if online applications are available, online account access and mobile apps.
• Transparency: This category is measured by how accessible credit requirements, rates and fees are on the lender's page. We also considered whether prequalification was available, as all these factors are key for consumers to make an informed decision.

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