Peer-to-peer (P2P) lending has come a long way in the last decade or so, and individuals now have numerous options to choose from. P2P personal loans give you the ability to move away from conventional lenders such as banks and credit unions, who tend to offer loans only to people with at least good credit scores. With a P2P lender, your ability to repay the amount you borrow is given due importance because it would bring attention to your income and existing financial situation. Of the several P2P lending platforms in the market, Prosper is among the leaders.
Founded in 2005, Prosper is as legit as they get. It was the first P2P lending marketplace in the U.S, and, since its inception, it has disbursed over $19 billion in funding to more than a million customers. It also received backing from prominent investors such as Sequoia Capital, Credit Suisse NEXT Fund, and Francisco Partners.
Prosper reports your activity to the three major credit bureaus. This helps you to build your credit score by making timely payments.
This P2P lender provides personal loans for various purposes, as well as a home equity line of credit (HELOC). It does not, however, offer home loans.
Prosper assigns all loan applications with “Prosper Ratings,” its proprietary rating system. This gives potential investors insight into an application’s risk level.
Prosper Loan Types
The types of personal loans that Prosper provides include:
- Debt Consolidation Loans. You may use a Prosper debt consolidation loan to combine and pay off your high-interest credit card debt through a single fixed monthly payment.
- Home Improvement Loans. No matter if you need to purchase new furniture or appliances, remodel your bathroom or kitchen, get new doors or windows, or hire a contractor, you may get the money you need by getting a Prosper home improvement loan.
- Short-Term & Bridge Loans. If you need access to short-term financing for any reason, getting a short-term or bridge loan from Prosper might work well for you. The loan term can be three or five years. You can pay off the loan in advance without worrying about prepayment penalties.
- Auto & Vehicle Loans. You may use proceeds you receive through a Prosper auto loan to purchase a new or used vehicle of practically any type. Using the money you receive to refinance an existing auto loan is also an option.
- Small Business Loans. Prosper does not provide a conventional small business loan. However, once approved by Prosper, you may use the funds you get through its short-term personal loan for business purposes.
- Baby & Adoption Loans. If you feel financially ill-prepared to deal with the arrival of a new member of your family, you might consider getting a baby or an adoption loan to deal with the expenses that are bound to come your way.
- Engagement Ring Financing. If buying the engagement ring you want seems costly, getting engagement ring financing through Prosper might work well for you. This way, you don’t have to make a long-term commitment based on a short-term lack of cash.
- Special Occasion Loans. Prosper lets you use the money you receive through its special occasion loan to finance just about any type of event or celebration, be it a birthday, graduation, a wedding, or a funeral.
- Green Loans. Given that the initial costs for converting to green technologies can be prohibitive, Prosper provides green loans to meet financial requirements of different purposes. These include but are not limited to: installing water preservation systems, solar panels, and LED lighting.
- Military Loans. Prosper aims to simplify how people who serve in the military get personal loans by making the application process entirely online. You may use the funds you receive for just about any legitimate purpose.
- Healthcare Lending. Whether you need to pay for emergency medical expenses, an elective procedure, or hospitalization for any reason, you may get the healthcare financing you need through Prosper.
You can apply for the following types of loans: debt consolidation, home improvement, short-term & bridge loans, auto & vehicle loans, small business loans, baby & adoption loans, engagement ring financing, special occasion loans, green loans, military loans, healthcare lending.
|APR||7.95 - 35.99% |
|Amount||$2,000 - $40,000 |
|Term||3 - 5 years |
|Origination fee||2.41 - 5% |
As you can see from the table the maximum loan amount is $40,000, and the APR starts at 7.95% for the best graded borrowers. The loan period varies from 3 to 5 years.
Prosper Personal Loans: Pros & Cons
|Pros: ||Cons: |
|Widespread availability. Prosper personal loans are available in all states except Iowa and West Virginia. ||No autopay discount. Setting up autopay does not come with any discount. |
|Pre-qualification. Seeking pre-qualification is an option, and it does not affect your credit score. ||Relatively high credit requirements. Borrowers cannot qualify for Prosper personal loans if they have poor or bad credit. |
|Apply with average credit. Prosper requires a minimum credit score of 640, which enables you to qualify even with average credit. ||Origination fee. All Prosper loans come with an origination fee of 2.41 - 5%. |
|Transparency. Prosper offers complete transparency by displaying rates, fees, and terms on its website. It also provides all the information you might need about its loans in an easy-to-access manner. ||Other fees. Check payment fee stands at $5 or 5% of the payment amount; late fee at $15 or 5% of the amount that’s due; and insufficient funds fee at $15. |
|Joint loans. You may apply for a personal loan through Prosper with a joint applicant. ||Absence of app. While Prosper provides an app for investors, there’s no app for borrowers. |
|Change payment date. You get the ability to set your payment due date according to your convenience. |
|No prepayment penalty. You may pay off your Prosper loan ahead of time without worrying about prepayment penalties. |
Applying for a Prosper loan
You might get pre-approval for a Prosper personal loan if you meet its initial lending requirements. In some cases, Prosper provides pre-approval via mail or its partner websites. Even if you have been pre-approved, you still need to submit an application directly through Prosper. You get an eight-digit confirmation number along with your pre-approval, which you may use to speed up the application process by visiting the Save With Prosper page.
As an individual, you may apply for a Prosper loan online or over the phone. However, if you wish to submit a joint application, you have to submit an online application. You may visit the Prosper website at any time to initiate your application.
You need to meet these eligibility criteria to qualify for a Prosper personal loan:
- You are over 18 years old
- You are a resident of the United States and live in a state where Prosper loans are available
- You have a Social Security Number and an active U.S. bank account
- Your FICO score is at least 640
- You had less than five credit inquiries in the last six months
- Your debt-to-income ratio is below 50%
- Your credit report shows a minimum of three active accounts
- You have not filed for bankruptcy in the last 12 months
To apply, you will need to provide:
- Your complete name and Social Security Number
- Your phone number, residential address, and email address
- Information about your income, expenses, assets, and existing debt
- Proof of address and proof of income
Prosper goes through your credit report during the review stage. It might contact your employer to verify your employment status and for income verification. This process may take up to five business days. While investors get 14 days to fund your loan, Prosper says they typically commit to funding in one to three days. If your loan does not receive at least 70% funding within 14 days, its listing expires.
Upon your loan’s approval, the originating bank transfers the funds to your bank account on the same day. It may take one to three business days for the money to get to your account, depending on your bank.
Getting a personal loan through Prosper might be worth your while if you don’t have a good or excellent credit rating or if you wish to get a loan with a joint applicant. However, if you want to avoid loan origination fees and long lists of eligibility criteria, you might consider other alternatives.
What are Prosper loans?
Prosper loans are unsecured
personal loans. They come in the form of debt consolidation loans, home improvement loans, short-term & bridge loans, auto & vehicle loans, baby & adoption loans, engagement ring financing, special occasion loans, green loans, and military loans.
What is the Prosper customer service phone number?
The Prosper customer service number for borrowers is 1-866-615-6319
. You may call this number to get more information about Proper loans, initiate your application, or file complaints. Its customer service phone number for investors is 1-877-646-5922
Is Prosper legit?
Yes, Prosper Funding LLC is a completely legitimate company.
Is Prosper a good loan company?
Customer reviews of this lender are largely favorable. On Trustpilot, Prosper rates as excellent, with a rating of 4.6 out of 5 after over 6,900 reviews. This goes to show that Prosper is safe and reliable.
Does Prosper verify income?
Yes, Prosper verifies your income as part of the application review process.
How long does it take to fund a Prosper loan?
Verifying the information you’ve provided through your application may take up to five business days. Investors then get 14 days to invest in your loan. Prosper says that most approved applications find investors within three days. Once approved, it might take up to three days for the money to reach your bank account.
What credit bureaus does Prosper report to?
The credit bureaus that Prosper reports your payment history and other loan-related information to include: Equifax, Experian, and TransUnion.
Does Prosper do a hard pull?
Yes, once you accept Prosper's offer, it carries out a hard pull. Checking the rate you qualify for through Prosper’s initial online application involves a soft pull and does not affect your credit score.