Posted by: Adam McCann

Quick Review: Prosper personal loans are best for people with excellent credit, as they have the best chance of qualifying for Prosper’s minimum APR of 6.95%. People with credit scores as low as 640 can still qualify for a loan from Prosper, but applicants who barely meet the minimum requirements are much more likely to get an APR toward the high end of Prosper’s range. It could be as high as 35.99%, one of the highest personal loan rates on the market.

Prosper offers personal loans of $2,000 to $40,000, over either three or five years. However, one other drawback is that there is an origination fee of 2.41% to 5%, which is built in to the loan’s APR. In other words, someone who qualifies for the lowest interest rate possible and has a 2.41% origination fee will pay the minimum APR of 6.95%. Below, you can examine the pros and cons of Prosper personal loans and see how they stack up to other lenders’ offers.

Prosper Loan Terms

APRs	6.95% - 35.99%
Loan lengths	36 or 60 months
Loan amounts	$2,000 - $40,000
Approval time	7 business days
Funds delivery time	1 - 3 business days
Origination fee	2.41% - 5%
Late fee	5% (min $15)
Early payoff fee	None
Credit score requirement	640
Minimum income requirement	Not disclosed
Other requirements (all must apply)	18 years old U.S. citizen/permanent resident SSN

Prosper Interest Rates & Fees

Prosper interest rates can be anywhere from 6.95% to 35.99%. Therefore, Prosper offers low interest rates for people with the best credit and income, but some of the highest rates on the market for people in less ideal financial situations. Prosper’s rates are fixed, so they won’t change at all during the life of the loan.

The Prosper origination fee will be between 2.41% and 5% of the loan’s amount. It too depends on the factors such as your  credit history and income. This origination fee isn’t charged separately but rather built into your loan’s interest rate. The 6.95% to 35.99% range already includes origination fees.

Prosper does not charge any fee if you pay off your loan earlier than expected. Their monthly late fee is $15 or 5% of the payment amount, whichever is greater.

Prosper Loan Requirements & Application Info

The Prosper credit score requirement is at least 640, according to Prosper representatives, though you are still allowed to try with a lower score. The Prosper income requirements are not public knowledge.

There are other Prosper loan requirements, too. In order to qualify for a Prosper personal loan, you will need to be at least 18 years old and a U.S. citizen or a permanent resident with a Social Security number.

Prosper lets you see what rates you could potentially get before actually submitting an application. You will have to create a password to log in to the Prosper site and put in some personal information like your address and income to check for pre-qualification. Checking your rate will not affect your credit score, but applying for a loan will temporarily. You can apply for a Prosper personal loan online or over the phone (1-866-615-6319). Prosper does not allow joint applications.

Prosper Personal Loan Reviews & Transparency

Prosper has a great reputation with the Better Business Bureau. They also have few complaints filed with the Consumer Financial Protection Bureau, none of which are recent.

• Better Business Bureau: Prosper has an A+ rating by the BBB. It has been accredited since 2012.
• Consumer Financial Protection Bureau: There have only been 240 complaints filed with the CFPB against Prosper. Just 101 of those complaints are specifically about personal installment loans. Some complaints include having trouble paying off a Prosper loan with another loan and a case of fraud.

  Prosper has given “timely” answers to all previous complaints. The latest complaint in the database is from April 2019.

• WalletHub: WalletHub’s users rate Prosper 3/5. WalletHub’s editors award Prosper personal loans a score of 3.5/5.

Prosper’s personal loan terms are very transparent. You can easily find them on their website. In addition, Prosper is open about their credit score requirements, which is not too common with personal loan lenders. Prosper doesn’t disclose a minimum income requirement, though.

Prosper Personal Loans vs. Popular Competitors

Lender	Prosper	American Express	LendingClub
APR	6.95% - 35.99%	6.90% - 19.98%	6.95% - 35.89%
Loan amounts	$2,000 - $40,000	$3,500 - $40,000	$1,000 - $40,000
Loan lengths	36 or 60 months	12, 24, 36, or 48 months	36 or 60 months
Credit score required	640	660	600-640*

*According to multiple third-party sources Methodology

WalletHub’s scorecard for Prosper personal loans included 23 metrics in 7 major categories, ranging from rates and fees to requirements and transparency. Some metrics had higher effects on the scoring than others – for example, APR had a big impact. Below, you can view all the things we considered.

• Requirements: WalletHub considered credit score and income requirements in addition to citizenship and identification requirements.
• APR: Our editors checked Prosper’s highest and lowest interest rates as well as whether the loans have fixed APRs or variable APRs.
• Fees: We looked at Prosper’s fees. We focused on origination fees, prepayment penalties and late fees.
• Loan amounts: We considered the highest and lowest loan amounts offered. We also looked at how many months you can take to pay off the loans.
• Application process: We looked at the different ways available to apply, plus whether co-signers are accepted. We also checked whether Prosper offers pre-qualification, how long it takes to get approved and how long it takes get a loan funded.
• Customer satisfaction: We checked Prosper’s BBB rating, the number of CFPB complaints filed against them, and WalletHub user reviews.
• Transparency: Our editors evaluated how clear Prosper is about both how to get a loan and what APRs, fees and other terms loans have.

from Wallet HubWallet Hub


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