The bottom line: Prosper loans come with limited terms, but rates and fees that compare to other fair- and good-credit lenders.
Pros & Cons
No prepayment fee.
Option to change your payment date.
Joint loan option.
Charges origination fee.
Charges late fee of $15 or 5% of the unpaid loan amount.
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To review Prosper, NerdWallet collected more than 30 data points from the lender, interviewed company executives 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 is a peer-to-peer lender that provides unsecured personal loans to borrowers with fair or good credit.
To qualify applicants, the company says it rates borrowers using a risk-rating system that takes into account hundreds of data points, including credit history. Those ratings are used by investors to decide whether to fund your loan. Your application expires if your loan request isn’t at least 70% funded within 14 days.
Prosper loans come with either a three- or five-year term.
The company says it has originated more than $16 billion in loans to over 980,000 people since it was founded in 2005.
Loan uses: These loans can be used for nearly any purpose, including debt consolidation and home improvement. The company has a separate product for medical loans as well.
Time to fund: On average, Prosper takes three to five days to fund a loan.
Payment options: Prosper allows borrowers to change due dates in most situations, but a loan can’t be extended, even for an emergency. Unlike some lenders, this lender doesn’t directly pay your creditors if you're consolidating debt.
Joint loan option: Prosper says getting a joint loan with someone who has strong credit could improve your chances of getting a loan or get you a lower rate on one.
Origination fee: 2.4%-5%.
Late fee: $15 or 5% of the unpaid amount (whichever is greater).
Insufficient funds fee: $15.
» MORE: Personal loans for good credit
How to qualify:
Minimum credit score: 640, but the average is 717.
Minimum credit history: Two years, but the average is 11.
Minimum annual income: None, but average is $89,000.
Maximum debt-to-income ratio: 50% (excluding mortgage).
No bankruptcies filed within the past year.
Fewer than five credit bureau inquiries in the past six months.
Compare Prosper with other loan companies:
Loan example: For a borrower with good credit, a $10,000 personal loan with a repayment term of three years at 18% APR would carry monthly payments of $362, according to NerdWallet’s personal loan calculator.
Before you shop for a personal loan
Pre-qualify on NerdWallet
NerdWallet recommends comparing loans to find the best rate for you. Pre-qualifying may get you personalized rates from multiple lenders that partner with us, including Prosper. Pre-qualifying will not impact your credit.
Apply on Prosper
You can apply directly on Prosper’s website, submitting information including your employment status, income and monthly housing payment. Once approved, Prosper says funds will be transferred to your bank account within one to three business days.
on Prosper's website
Personal Loans Rating Methodology
NerdWallet's ratings for personal loans award points to lenders that offer consumer-friendly features, including: soft credit checks, no fees, transparency of loan rates and terms, flexible payment options, accessible customer service, reporting of payments to credit bureaus, and financial education. We also consider the number of complaints filed with agencies like the Consumer Financial Protection Bureau. This methodology applies only to 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.