Editorial Review

Prosper Loans: 2019 Personal Loan Review

Prosper loans to borrowers with long credit histories and solid annual income. Charges a fee to originate your loan.

Narottam MedhoraAugust 15, 2019

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Our Take

4.0

NerdWallet rating 

The Bottom Line: Prosper is a peer-to-peer lender with rates and fees that compare to other loans for good-credit borrowers.

Prosper

on Prosper's website

on Prosper's website

Min. Credit Score

640

Est. APR

6.95-35.99%

Loan Amount

$2,000-$40,000

Pros & Cons

Pros
  • Soft credit check.

  • Fast funding.

  • No prepayment penalty.

Cons
  • Origination and late fees.

  • No flexible payment options.

Compare to Other Lenders

Prosper
Lending Club
SoFi
Est. APR

6.95-35.99%

Est. APR

6.95-35.89%

Est. APR

5.99-16.79%

Loan Term

3 to 5 years

Loan Term

3 to 5 years

Loan Term

2 to 7 years

Loan Amount

$2,000-$40,000

Loan Amount

$1,000-$40,000

Loan Amount

$5,000-$100,000

Min. Credit Score

640

Min. Credit Score

600

Min. Credit Score

680

Compare estimated rates from multiple lenders

Compare Rates

Full Review

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, a peer-to-peer lender, provides unsecured personal loans that can be used for nearly any purpose, including debt consolidation and home improvements.

To qualify applicants, Prosper says it uses a proprietary risk-rating system that takes into account hundreds of data points, including credit history. Prosper’s ratings are used by investors to decide whether or not to fund your loan. Your application expires if your loan request isn’t funded.

Payment options: Unlike some lenders, Prosper doesn’t allow you to adjust your payment schedule, nor does it directly pay your creditors if you're consolidating debt.

Fees:

  • Origination fee: 2.4% - 5%.

  • Late fee: $15 or 5% of unpaid amount (whichever is greater).

  • Insufficient funds fee: $15.

How to qualify:

  • Minimum credit score: 640, but average is 717.

  • Minimum credit history: Two years, but average is 11.

  • Minimum annual income: None, but average is $89,000.

  • Maximum debt-to-income ratio: 50% (excluding mortgage).

Compare Prosper with other loan companies:

Loan example: For a borrower with excellent credit, a $10,000 personal loan with a repayment term of three years at 13.9% APR would carry monthly payments of $341, 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. Click the button below to pre-qualify on NerdWallet. You may receive 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.