Prosper 2026 Personal Loan Review
Prosper works with borrowers in most credit situations, including bad credit or a thin credit file, but watch out for the origination fee and other charges.
4.4
- Need a lender with flexible credit requirements.
- Want a joint loan.
- Want to pre-qualify with a soft credit check.
- Need fast funding.
- Want to avoid an origination fee.
- Need a co-signed or secured loan.
- Prefer to direct-pay creditors.
- Want to earn rate discounts.
What to know about Prosper personal loans
Prosper is a peer-to-peer lending platform that stands out for its willingness to work with borrowers across the credit spectrum. But its fees can add up, so we recommend pre-qualifying with several lenders.
Many lenders require a credit score in the mid- to high 600s, but Prosper accepts borrowers with scores as low as 560. Because the lender has no minimum length of credit history or number of open accounts, it could be a decent option if you have a thin credit file.
That doesn’t mean you’ll automatically qualify with a 560 credit score. In fact, the lender says its average borrower has a score in the high 600s to low 700s and annual income over $100,000.
Still, I’d recommend checking out Prosper if you have less-than-perfect credit or limited credit history. One thing I like about Prosper is that it uses alternative data, like cash flow and bank transaction history, that doesn’t appear in traditional credit reports. Sometimes, these data points can help you qualify for a loan that you wouldn’t otherwise be eligible for.
You can pre-qualify for a loan with a soft credit check, which doesn’t hurt your credit. Many other lenders also offer pre-qualification, so you can easily compare several loan options.
Usually, the best personal loan offer is the one with the lowest annual percentage rate. Prosper’s lowest rates are competitive, starting at less than 10%. However, the average borrower’s rate is quite a bit higher in the low- to mid-20% range.
Prosper has a few fees you’ll want to keep an eye out for – most notably, its origination fee of up to 9.99%. The lender deducts the charge from your loan amount. For example, if you take out a $10,000 loan with a 5% origination fee, you’d only get $9,500, so you may need to borrow more if you need the full $10,000.
The lender also charges a late fee if your payment is more than 15 days past due and a fee for a returned check. There’s also a fee for mailing your payment by check – something I rarely see in personal loans.
Loans are available for $2,000 to $50,000, with repayment terms of two to six years – which gives you pretty broad flexibility to cover many financing needs. Most loans fund the day after approval.
Several lenders have lower minimums of $1,000 or less, and those may be a better choice if you need to borrow for a relatively small, one-time expense. Otherwise, I could see Prosper loans as being a good fit for things like a car repair or medical bill.
Prosper’s maximum loan amount of $50,000 will probably be sufficient for many borrowers, but a few lenders offer personal loans of up to $100,000 if you need to borrow more.
» MORE: Compare the best personal loans
What we like most about Prosper
- Works with many credit situations: Prosper personal loans may be an option if you have bad credit or a limited credit history. While many lenders have minimum credit scores in the mid-600s, Prosper works with borrowers who have at least a 560 score. The lender also has flexible income and credit history requirements, and it uses alternative data points that could help you qualify based on factors that don’t appear in your traditional credit reports.
- Wide range of loan amounts: Prosper personal loans range from $2,000 to $50,000. If you need a loan for a smaller expense, it may be worth looking at a lender with a lower minimum to avoid paying interest on funds you don’t need, but otherwise, the broad range of loan amounts gives you flexibility to cover many financing needs.
- Offers joint loans: Prosper offers both individual and joint personal loans, where co-borrowers share access to loan funds and responsibility for repayment. The lender says co-borrowers may have “slightly relaxed” requirements for things like credit scores and DTI ratios compared to individual borrowers.
- Lets you pre-qualify with a soft credit check: Prosper lets you see if you qualify without affecting your credit. If you pre-qualify, you can see most loan details, including the potential amount, interest rate and total interest costs, repayment term and monthly payment. You may also be able to choose from multiple loan offers.
Why Prosper may not be right for you
- Charges an origination fee, plus other fees: Prosper charges an upfront origination fee of 1% to 9.99% that gets deducted from your loan. Because this fee reduces the amount you receive, you may need to borrow more to offset the cost. Not all lenders charge an origination fee. Prosper loans have a few other fees to be aware of, too: A late fee of 5% of the loan amount due or $15, whichever is greater (unless your state requires a lower amount); an insufficient funds fee of $15; and a $5 fee for payments mailed by check.
- No rate discounts: Unlike some lenders, Prosper doesn’t offer rate discounts for things like setting up automatic payments, being an existing customer or making direct payments to creditors if you’re using the loan to pay off debt. That said, I don’t think lack of rate discounts should deter you if you’re offered an already-competitive rate by Prosper. And while there’s no formal discount for existing customers, the lender tells NerdWallet that repeat borrowers may qualify for a lower rate or a higher loan amount, depending on their current financial circumstances and credit profile.
- No co-signed or secured loans: Though Prosper offers joint personal loans, it doesn’t offer co-signed loans, where someone agrees to make payments if the main borrower defaults but doesn’t have access to loan funds. The lender also doesn’t have secured personal loans, which are backed by collateral (like a vehicle or savings account) that the lender can seize if you don’t make payments. Both co-signed loans and secured loans can sometimes help you qualify for a loan with terms you wouldn’t be eligible for based on your credit profile.
How much does a Prosper personal loan cost?
The total cost of your Prosper loan depends on the amount borrowed, annual percentage rate and loan term. Here is an example of how different rates affect the costs of a $15,000 loan with a five-year term. The lender told NerdWallet its average borrower typically gets an APR from 20% to 24.99%.
APR | 20% | 25% |
|---|---|---|
Monthly payment | $397 | $440 |
Total interest cost | $8,845 | $11,416 |
Total loan cost | $23,845 | $26,416 |
» MORE: Use our personal loan calculator to estimate your costs
Do you qualify for a Prosper personal loan?
You may be able to qualify for a Prosper personal loan if you have bad credit. The lender accepts borrowers with credit scores as low as 560 and a DTI ratio of 50%, not including a mortgage. The lender doesn’t have a minimum length of credit or number of accounts to qualify.
That said, the average Prosper borrower has good credit (a score between 690 and 719), a DTI ratio between 31% and 50%, and average annual income above $100,000.
Prosper personal loans are available in 47 states and Washington, D.C., but they aren’t available in Iowa, North Dakota or West Virginia.
Prosper’s borrowing requirements
- Minimum credit score: 560.
- Maximum debt-to-income ratio: 50%, excluding mortgage.
- Minimum credit history: No minimum length of credit history or number of accounts.
- Must be at least 18 (or the age of majority in Alabama, Mississippi and Nebraska).
- Must be a U.S. resident and live in a state where Prosper loans are available.
- Must have a Social Security number.
- Must have a valid email address and U.S. bank account.
Profile of an average Prosper borrower
- Average loan amount: $10,000 to $20,000.
- Average APR: 20% to 24.99%
- Most common loan term: 5 years.
- Most common loan purposes: Debt consolidation, home improvement, medical/dental, vacation, wedding or major life event.
- Average borrower’s credit score: 690 to 719.
- Average annual income: $100,000 or higher.
- Average borrower’s debt-to-income ratio: 31% to 50%.
» MORE: How to get a personal loan
Frequently asked questions
Q: What is an origination fee?
A: A personal loan origination fee is an upfront expense some lenders charge to cover administrative costs to process the loan. The fee is typically from 1% to 10% of the loan amount.
Q: What’s the difference between the APR and interest rate on a personal loan?
A: A personal loan annual percentage rate (APR) is the combined total of the interest rate plus the origination fee, calculated on a yearly basis and expressed as a percentage.
APR is important because it shows you the full cost of borrowing over one year. It’s usually the best point of comparison if you’re comparing multiple personal loan offers.
Q: What’s the difference between a co-borrower and co-signer?
A: A co-signer is someone who adds their name, credit profile and financial information to the primary borrower’s loan application to help them qualify for a loan. A co-signer shares legal responsibility for loan payments but doesn’t get access to loan funds. A co-borrower, on the other hand, has access to loan funds and is also responsible for repaying the loan.
How does Prosper compare to the best lenders?
 |  |  |  |
|---|---|---|---|
Est. APRFrom 6.99% to 35.49% | Est. APRFrom 6.53% to 35.99% | Est. APRFrom 7.24% to 24.89% | Est. APRFrom 7.74% to 35.99% |
Loan amountFrom $5,000 to $100,000 | Loan amountFrom $1,000 to $75,000 | Loan amountFrom $5,000 to $100,000 | Loan amountFrom $1,000 to $50,000 |
Min. credit scoreNaN | Min. credit score600 | Min. credit score660 | Min. credit score600 |
How we rated this lender
NerdWallet’s editorial team rates lenders using a rubric with five weighted categories and 29 subcategories. Here are the factors we prioritized, plus why this lender received each score.
Prosper has relatively competitive APRs, but the lender doesn’t offer rate discounts and charges an origination fee of up to 9.99%.
Our Method: We review lenders’ rates and fees, plus any opportunities for rate discounts.
Prosper reports loan payments to all three credit bureaus and has several customer-friendly features like a mobile app to manage your loan, the ability to change your payment date and hardship accommodations for borrowers experiencing financial difficulties.
Our Method: We look at factors such as customer service availability, monthly payment flexibility and whether the lender reports on-time payments to major credit bureaus.
The lender offers unsecured and joint personal loans with repayment terms of one to six years. Small, medium and large loans are available, but the lender doesn’t directly pay creditors when you take out a loan to consolidate debts.
Our Method: We assess loan amount and term ranges and whether lenders offer multiple loan types or direct payment to creditors on debt consolidation loans.
Prosper works with most credit situations, including bad credit and a thin credit file, and allows you to pre-qualify with a soft credit check. Loans are available in 47 states and Washington, D.C.
Our Method: We consider how widely available and accessible the loans are and how lenders review applicants’ credit.
Prosper offers instant application decisions and next-day funding. Most important information, like loan amounts and APRs, are easy to find on the lender’s website.
Our Method: We evaluate loan approval and funding times and the lender’s transparency throughout the application process.
Read more about our ratings methodologies for personal loans.
