NerdWallet rating: 4.0 / 5.0
Good for: Good credit, debt consolidation
Prosper is one of the pioneers of peer-to-peer, or marketplace, lending. It connects good-credit borrowers with investors who can choose to fund their loans.
Prosper is a good fit for those who:
- Have good to excellent credit scores. Prosper’s minimum score is 640, but its customers average 710.
- Have substantial annual income. The average for Prosper borrowers is $86,400. There’s no minimum requirement, but borrowers generally have high incomes and experience with multiple lines of credit.
- Want a loan from an online lender that’s been around for a while. San Francisco-based Prosper was founded in 2006.
Prosper at a glance
|Typical APR||5.99% – 36%|
|Loan amounts||$2,000 – $35,000|
|Time to funding||Three to five business days|
|Origination fee||1% – 5%|
|Soft credit check with application?||Yes|
Clicking “Check rates” will take you to an application form on NerdWallet.
»MORE: Best loans for good credit
Prosper personal loan review
To review Prosper, NerdWallet collected more than 30 data points from the lender, interviewed company executives, completed the online loan application process with sample data and compared the lender with others that seek the same customer or offer a similar product. Loan terms and fees may vary by state.
Prosper doesn’t fund loans with its own money like some online lenders do. The company underwrites applicants and charges a fee to match investors with approved borrowers. Lending Club, another big marketplace lender, uses the same model. Other online lenders, such as SoFi, typically use their own capital to fund loans.
Prosper assigns all borrowers a grade by analyzing internal data about its past borrowers’ behavior and combining it with traditional credit data such as credit scores and debt-to-income ratios. Your grade, which you can see, determines the interest rate you receive and your origination fee. Investors use it to decide whether to invest in your loan.
How Prosper loans compare
Prosper loans aren’t as flexible as those from some other online lenders; you can’t adjust your payment schedule, and you’ll be charged a late fee if you fail to make a payment. Lending Club has slightly more flexible loan terms and a lower minimum loan amount. It lets borrowers file joint loan applications and offers a payment modification plan when borrowers have trouble making payments.
How to apply for a Prosper loan
You can apply directly on Prosper’s website, or you can apply on NerdWallet.
If you want to compare an offer from Prosper with those from other lenders, you can check rates with multiple lenders on NerdWallet using the button below. NerdWallet will check its lender marketplace and display the loans for which you qualify, so you can compare rates in one place. Checking your rates won’t affect your credit score.
More about Prosper
Prosper loan requirements
- Minimum credit score: 640
- Minimum gross income: None, but generally high
- Minimum credit history: None, but generally several years
- Limitations: Aimed at good-credit borrowers
- Maximum debt-to-income ratio: 50% (excluding mortgage)
Prosper lending terms
- Annual percentage rate range: 5.99% to 36%
- Minimum loan amount: $2,000
- Maximum loan amount: $35,000
- Loan duration: Three or five years
- Time to receive funds: Typically three to five business days
Prosper fees and penalties
- Origination fee: 1% to 5% of the loan amount, depending on the borrower’s Prosper grade
- Prepayment fee: None
- Late fees: The greater of $15 or 5% of the payment amount
- Unsuccessful payment fee: $15
- Personal-check processing fees: None
Before you take a personal loan
Updated May 3, 2017.
Personal Loans Ratings Methodology
NerdWallet’s ratings for personal loans awards points to lenders that offer consumer-friendly features, including soft credit checks, no origination fees, payment options, short time to funding, interest rate caps of 36% and absence of prepayment penalties. Features are considered for their positive impact on consumers’ credit history and financial health. To ensure accuracy and consistency, our ratings are reviewed by multiple people on the NerdWallet Personal Loans team.
— Among the very best for consumer-friendly features
— Excellent; offers most consumer-friendly features
— Very good; offers many consumer-friendly features
— Good; may not offer something important to you
— Fair; missing important consumer-friendly features
— Poor; proceed with great caution