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Prosper Personal Loans: 2018 Review

Loans, Personal Loans, Personal Loans Reviews
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4 stars out of 5

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. There’s no minimum requirement, but the average for Prosper borrowers is about $89,000.
  • 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 APR5.99% – 35.99%
Loan amounts$2,000 – $35,000
Time to fundingOne to three business days after approval
Origination fee1% – 5%
Soft credit check with application?Yes

Click “Check Rates” to apply on Prosper.


» 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 personal loan 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. LendingClub, 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

Compare Prosper

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. LendingClub 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. SoFi, which offers similar starting rates, offers its “members” social perks like networking and educational opportunities.

How to apply for a Prosper loan

You can apply directly on Prosper’s website.

NerdWallet recommends comparing loans to find the best rate for you. Click the button below to see estimated rates from multiple lenders on NerdWallet.

More about Prosper

Prosper loan requirements

  • Minimum credit score: 640
  • Minimum gross income: None, but generally high
  • Minimum credit history: Two years. Borrowers average 11 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 35.99%
  • Minimum loan amount: $2,000
  • Maximum loan amount: $35,000
  • Loan duration: Three or five years
  • Time to receive funds: Typically one to three business days after approval

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 shop for a personal loan

Updated Jan. 2, 2018.

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. We only review lenders that cap interest rates at 36%, the maximum rate financial experts and consumer advocates agree is the acceptable limit for a loan to be affordable. NerdWallet does not receive compensation of any sort for our reviews. Read our editorial guidelines.

5 stars out of 5 — Among the very best for consumer-friendly features

4.5 stars out of 5 — Excellent; offers most consumer-friendly features

4 stars out of 5 — Very good; offers many consumer-friendly features

3.5 stars out of 5 — Good; may not offer something important to you

3 stars out of 5 — Fair; missing important consumer-friendly features

2.5 stars out of 5 — Poor; proceed with great caution

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