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Prosper is a peer-to-peer personal loan company that can help you pay off debt or fund a big project or event. In this review, we’ll explain how a Prosper personal loan works, explore the pros and cons, and help you decide if it is right for you. Enjoy!
When trying to fund a project or pay off existing debt, personal loans aren’t the first option people usually consider. However, there are times when personal loans can be a beneficial tool. This may include paying for things like weddings, home improvement projects, or moving expenses.
Prosper provides a way to fund those goals through peer-to-peer lending solutions. With personal loans available up to $40,000, Prosper can help you navigate your financial circumstances. There’s even a way to quickly check rates without committing to anything or affecting your credit.
Here’s a detailed look at Prosper and its personal loan requirements so you can determine if a Prosper personal loan is right for you.
Personal Loans Starting at 7.95% APR – Prosper offers personal loans you can use to pay off debt, fund that big project, or pay for an event. Get started here.
What Is Prosper?
Prosper is an online peer-to-peer lending marketplace for personal loans and home equity lines of credit (HELOCs). Launched in 2005, Prosper is an originator and leader in crowd lending. Prosper offers fixed-rate personal loans to fund a variety of projects, events, and debt consolidation. Over one million people have received loans totaling over $17 billion through Prosper since its inception.
How Does Prosper Work?
Prosper simplifies the borrowing process by allowing individuals and joint borrowers to check rates before applying for a personal loan. This requires a soft credit check, which won’t negatively affect your credit score.
Borrowers can fill out the form on Prosper’s website to check rates. You’ll be asked how much you want to borrow, as well as other personal information such as your:
- Date of birth
- Home address
- Email address
- Reason for the loan
- Employment status
- Annual income
- Mortgage or rent payment amount
- Phone number
If you qualify, you’ll receive loan offers with available rate and term options. Rates are generated instantly, so there’s no wait to find out where you stand. Receiving offers doesn’t mean you are locked into a personal loan through Prosper if you don’t like what you receive.
Prosper Personal Loans: Quick Facts
Personal loans from Prosper are backed by the company’s investment partners and made by FDIC-insured WebBank. Here are the details you need to know about Prosper personal loans.
- Minimum loan amount: $2,000
- Maximum loan amount: $40,000
- Interest rates: Start at 7.95% APR
- Rate type: Fixed
- Loan terms: Three- and five-year term options
- Prepayment penalties: None
- Origination fees: 2.41% to 5%
Prosper Personal Loan Requirements
To qualify for a Prosper personal loan, you’ll need to meet specific requirements, including:
- Must be 18 years or older
- Be a U.S. resident in a state where Prosper loans are available
- Have a social security number
- Have a U.S. bank account
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What Kind of Credit Do I Need for Prosper?
You’ll also need to meet several credit requirements to qualify for a personal loan through Prosper. Loan rates are based on creditworthiness, with the best rates reserved for individuals with excellent credit scores.
That doesn’t mean you won’t qualify for a personal loan without excellent credit, though. Prosper has a minimum credit score requirement of 640, which is considered fair credit. Their personal loans are also available for joint applicants, which might help secure better interest rates.
To qualify for a personal loan from Prosper, you’ll need to meet the following financial requirements:
- Fewer than five credit inquiries within the last six months
- Annual income over $0
- A debt-to-income ratio of 50% or less
- At least three open trades reported on your credit report
- Haven’t filed for bankruptcy in the last 12 months
How to Apply for Prosper Personal Loans
After you receive prequalifying offers from Prosper, take time to compare them to other lenders. If you like an offer, you can apply for the loan on Prosper’s website. You can apply for an individual personal loan over the phone, too.
As you move through the process, Prosper will perform a hard credit inquiry to get a more detailed picture of your creditworthiness and financial standing. Hard credit inquiries negatively affect your credit, though only temporarily.
What to Look For in a Personal Loan
When looking at personal loans, compare multiple lenders. It’s a good idea to know exactly how much you need to borrow too. Here are some factors to consider before taking out a personal loan:
- Interest rates: One of the most significant factors to consider with personal loans is the interest rate. A good interest rate means you’ll pay less interest over the life of your loan. Don’t accept any loan offers if you don’t get the rate you want. You might be better working to improve your credit score and applying for a loan at a later date.
- Fees: Most people don’t think about loan fees, but they add up quickly, especially if you don’t make payments on time. Fees charged by lenders could include origination fees, processing fees, late payment fees, and prepayment penalties. Read the fine print before signing up for a personal loan.
- Terms: Your loan term is the length of time it’ll take to pay off your personal loan. Loan terms affect interest rates, too, with shorter terms typically leading to lower interest rates.
Steps to Take Before Choosing a Personal Loan
Be sure to take these two steps before moving forward with a personal loan:
- Do your homework: Not all lenders are created equal. Read reviews, ask around, and comb the fine print to make sure you’re dealing with a reputable lender.
- Get a copy of your credit report: Having a copy of your credit report lets you see all the details a lender will see so you to know where you stand. You can access your credit report for free at AnnualCreditReport.com.
Prosper Personal Loans: The Bottom Line
Prosper is an excellent lending option for anyone looking for a personal loan, especially if you have good credit. That said, Prosper isn’t the only lender around. You might find better rates elsewhere, which is why it’s important to shop around.
Prosper provides a quick and easy way to check rates and prequalify for a personal loan. The company does require an email address and phone number during the process, though, so expect to receive follow-up emails and calls regardless if you choose one of Prosper’s loan offers.
Low Personal Loan Rates – Prosper offers personal loan rates starting at 7.95% APR so you can pay off your debt faster and move on with your life. Find your rate here!