Item: Prosper
Rating: 4
Author: Nicole Dow

4.0

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4.0

NerdWallet Rating

Est. APR

8.99 - 35.99%

Min. credit score

560

Time to fund

3 days

Loan amount

$2K - $50K

Loan term

2 to 5 years

Origination fee

1% to 9.99%

Disclosures from Prosper

Overview

Prosper is an online peer-to-peer lending platform that provides personal loans to borrowers with credit scores from 560 and above.

To determine which applicants qualify, Prosper uses a proprietary model that evaluates information like bank account transactions and alternative financial history. It also considers more traditional measures of creditworthiness. Then Prosper connects a borrower’s application with investors who can decide to fund the loan.

Prosper offers a wide range of loan amounts, making it a strong option for major and minor expenses.

» MORE: Compare top personal loan lenders and rates

What Prosper is best for

Bad-credit loans

Personal business loans

Peer-to-peer loans

Detailed breakdown

Affordability

(25%)

3/5

We review lenders’ annual percentage rate offerings and the competitiveness of each lenders’ APR range. We also assess whether a lender charges an origination fee and any opportunity for borrowers to receive a rate discount.

Customer experience

(20%)

4.5/5

We consider the experience of the consumer trying to manage a personal loan, which means accessibility of customer service representatives, whether borrowers can choose and change their payment due date, and the ability to track their loan on a mobile app.

Underwriting and eligibility

(20%)

5/5

We consider the rigorousness of each lender’s underwriting practices and how widely available their loans are. This category includes whether a lender does a hard credit check before providing a loan, the range of credit profiles they accept and how many states their loans are offered in.

Loan flexibility

(20%)

4.5/5

We assess how flexible lenders can be with borrowers, including whether they offer multiple loan types, personal loan amounts and repayment term options and whether they offer direct payment to creditors on debt consolidation loans.

Application process

(15%)

4.5/5

We consider the lender’s full application process, including a borrower’s ability to preview their loan offer via pre-qualification, whether basic loan information such as APR range and repayment terms are available and easy to find online and how quickly a loan can be funded after approval.

Overall

4/5

Read more about our ratings methodology for personal loans.

Where Prosper personal loans stand out

Accepts borrowers from across the credit spectrum: Prosper says it offers loans to borrowers whose credit scores range from bad to excellent. The company uses AI in its underwriting process to analyze numerous data points, including non-traditional factors such as bank transactions and rental payment history. Tapping that kind of information can lead Prosper to extend loans to borrowers other lenders may overlook.
Pre-qualifying shows a wide range of information about the potential loan: Prosper lets potential borrowers pre-qualify with a soft credit check. Potential borrowers can view their potential loan amount, rate, repayment term, monthly payment and total interest costs, plus compare multiple offers.
Joint loan option: Prosper's platform allows two borrowers to apply together as joint applicants. The company says requirements for borrowing may be less strict for co-borrowers than single applicants.
Fast funding: Prosper says next-day funding may be available for approved borrowers, and most receive loan funds within three days of loan approval. The platform states that investors have up to 14 days to fund an approved loan. The loan request will be denied if it isn’t at least 70% funded by then.
Well-rated mobile app: Borrowers can apply for a loan, make payments and check their credit score on the Prosper mobile app. The app is a convenient benefit for borrowers who manage their finances on their phone.

Where Prosper personal loans fall short

No rate discount: Prosper doesn’t offer any discounts off a borrower’s annual percentage rate. Other lenders have rate discounts for setting up autopay or authorizing direct pay to creditors on a debt consolidation loan.
Charges origination fees plus other fees: Personal loans through Prosper have origination fees ranging from 1% to 9.99% of the loan amount. The lending platform also charges $15 insufficient funds fees and late fees of $15 or 5% of the monthly payment, whichever is greater. If you choose to make loan payments by mailing in a check, Prosper charges a $5 fee, which is rare among personal loan lenders.
No direct payment to creditors with debt consolidation loans: Prosper does not send your loan proceeds directly to other creditors. That benefit, offered by many other lenders, streamlines the debt payoff process.

How to qualify

Prosper considers loan applications from borrowers across the credit spectrum. The company says it also factors in non-traditional data, such as bank transactions and rental payment history, to determine loan approval.

Prosper’s borrowing requirements

Minimum credit score: 560.
Maximum debt-to-income ratio: 50% not including mortgage payments.
Must have a Social Security number, U.S. bank account and proof of U.S. residency (loans not available to residents of Iowa or West Virginia).

» MORE: How to get a personal loan

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Profile of an average Prosper borrower

Loan amount

$16,008

Average APR

23.1%

Loan term

5 years

Credit score

708

Annual income

$139,000

Debt-to-income ratio

40.1%

Compare Prosper to the best lenders

Personal loan lenders offer different rates, loan amounts and special features, so it pays to weigh other options. The best personal loan is usually the one with the lowest APR.

4.0	4.5	5.0	5.0
EST. APR 8.99% - 35.99%	EST. APR 8.74% - 35.49%	EST. APR 7.9% - 35.99%	EST. APR 7.74% - 35.99%
LOAN AMOUNT $2K - $50K	LOAN AMOUNT $5K - $100K	LOAN AMOUNT $1K - $60K	LOAN AMOUNT $1K - $50K
MIN. CREDIT SCORE 560 Check Rates	MIN. CREDIT SCORE None Check Rates	MIN. CREDIT SCORE 600 Check Rates	MIN. CREDIT SCORE 600 Check Rates