LendingClub vs. Prosper Loans: How They Compare
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Prosper and LendingClub are online loan companies targeting fair- and good-credit borrowers. They’re among the pioneers of peer-to-peer lending and today offer personal loans for debt consolidation, home improvement and other purposes.
How are Prosper and LendingClub different? And which has the best loan for you? Given their similarities, it might come down to the interest rate you’re offered. Still, it’s worth comparing these two companies’ fees, approval processes and special features.
LendingClub vs. Prosper at a glance
Est. APR9.57-35.99% | Est. APR8.99-35.99% |
Loan term2 to 5 years | Loan term2 to 5 years |
Loan amount$1,000-$40,000 | Loan amount$2,000-$50,000 |
Min. credit score600 | Min. credit score560 |
Consumers who qualify for personal loans from LendingClub and Prosper typically have good credit. LendingClub’s average borrower has a score of 700. Prosper borrowers have an average score of 685.
Consumers with lower credit scores can still apply; both lenders consider additional factors like debt-to-income ratios and income when approving loans.
Both LendingClub and Prosper accept joint applications, which can boost borrowers’ approval odds.
LendingClub might be a better option if you:
Want to consolidation high-interest debt.
Can take advantage of its Member Center benefits.
LendingClub may be a good fit for fair-credit borrowers, particularly those looking to consolidate debt. The lender simplifies the debt consolidation process by sending loan proceeds to up to 12 creditors, a feature that Prosper doesn’t offer.
LendingClub's Member Center offers tools and information to help customers manage their money and credit.
How to qualify: LendingClub requires a minimum credit score of 600. The average borrower has an annual income of $85,000.
Single applicants must have a debt-to-income ratio of 60% or lower, while the combined DTI for joint borrowers must be 40% or less.
Approval and funding time: LendingClub says it can approve applications within 24 hours and fund loans within two days.
Costs: LendingClub’s APRs include an origination fee of 1% to 6% of the loan amount. The fee is deducted from the loan before you receive it.
There's no charge to make extra payments or pay back the loan early. If your payment is more than 15 days late, you may be charged a fee of 5% of the amount due or $15, whichever is greater.
Prosper might be a better option if you:
Need a large loan.
Want faster funding.
Prosper offers personal loans to fair or good-credit borrowers. It offers loans up to $50,000 and loan terms of two to five years. LendingClub's terms are three or five years.
How to qualify: Prosper’s minimum credit score is 600, and its average borrower has an annual income of $86,000.
» MORE: Personal loans for good credit
Approval and funding time: Prosper says it can approve applications instantly, and borrowers may receive their funds in one business day after approval.
Costs: Prosper’s APRs include an origination fee from 1% to 5%. As with LendingClub, the fee is deducted from your loan amount before you receive the money.
Prosper, like LendingClub, doesn’t charge to make extra payments or pay your loan off early. It has the same late payment fee of 5% of the amount due or $15, whichever is greater, after a 15-day grace period.
Shop around to find the best personal loan
Your best bet might be to pre-qualify with both LendingClub and Prosper and compare rates on any offers you get. The lenders are similar businesses but have unique grading systems, so one might offer you a better APR than the other.
NerdWallet recommends comparing loans to find the best rate for you. Enter your desired loan amount below and click the button to pre-qualify on NerdWallet and receive personalized rates from lenders that partner with us.
Personal Loans Rating Methodology
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Our star ratings award points to lenders that offer consumer-friendly features, including: soft credit checks to pre-qualify, competitive interest rates and no fees, transparency of rates and terms, flexible payment options, fast funding times, accessible customer service, reporting of payments to credit bureaus and financial education. We also consider regulatory actions filed by agencies like the Consumer Financial Protection Bureau. We weigh these factors based on our assessment of which are the most important to consumers and how meaningfully they impact consumers’ experiences.
This methodology applies only to lenders that cap interest rates at 36%, the maximum rate most financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation for our star ratings. Learn more about our ratings methodologies for personal loans and our editorial guidelines.
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