Prosper Loans: 2021 Personal Loan Review

To review Prosper’s personal loans, NerdWallet collected more than 40 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 personal loans to borrowers with fair or good credit. The company says it has originated more than $17 billion in loans to over 1 million people since it was founded in 2005.

To qualify applicants, the company uses a risk-rating system that takes into account data points like credit history and debt-to-income ratio. Borrowers are then assigned a Prosper score, which investors use to decide whether to fund your loan.

Your application expires if your loan request isn’t at least 70% funded within 14 days, though most loans are funded within one to three days, according to the company.

Prosper is best for borrowers who:

• Have fair or good credit (630 to 719 FICO).

• Want to include a co-borrower on their application.

• Are interested in home equity financing.

Prosper at a glance

» COMPARE: Personal loans for good credit

Where Prosper stands out

Joint loan option: Prosper allows two borrowers to apply together as joint applicants for a loan. While the primary borrower must meet Prosper’s main credit criteria, the secondary borrower can qualify with a FICO score of 600, at least one open account reported on their credit report and no bankruptcy filings within the last 12 months.

Including a co-borrower with stronger credit can improve your chances of getting a loan or a lower annual percentage rate.

» MORE: Best fair-credit lenders

Home equity line of credit: In addition to its unsecured personal loans, Prosper offers a home equity line of credit for borrowers in Alabama, Arizona, Colorado, Florida, New Mexico and Texas. With a HELOC, you borrow against the available equity in your home for a lower rate, and the house is used as collateral.

Prosper allows borrowers to apply and receive a HELOC within weeks, and applicants can also see a personalized offer without affecting their credit score.

Range of loan amounts: Prosper offers loan amounts from $2,000 to $40,000, which allow borrowers to cover a wider range of expenses, including debt consolidation and pricey home improvement projects.

Compare Prosper with other loan companies:

• Prosper vs. LendingClub

• Prosper vs. SoFi

Where Prosper falls short

Origination and late fees: Prosper charges an origination fee ranging from 2.41% to 5.99%. It also charges a late fee for loans that are more than 15 days past due — 5% of the monthly payment amount or $15, whichever is greater.

Limited term lengths: Borrowers can choose a three- or five-year loan repayment term. That’s somewhat common for online lenders, but it doesn’t give you the option to choose a shorter term and pay less interest, or a longer one to lower your monthly payments.

No rate discount for autopay: Unlike other lenders, Prosper does not offer an additional rate discount for setting up autopay. The discount usually ranges from 0.25% to 0.5%, and helps borrowers make payments on time.

No direct payments to creditors: Prosper does not send your loan proceeds directly to creditors when you consolidate debts with a loan. Instead, borrowers have to keep track of their own repayments.

» COMPARE: Peer-to-peer online lenders

How to qualify for a Prosper loan

• Minimum credit score: 640; borrower average is 726.

• Minimum credit history: 2 years.

• Minimum income: No minimum income requirement; borrower average is $113,000.

• Maximum debt-to-income ratio: 50% (excluding mortgage); borrower average is 18% with housing payment.

• No bankruptcies filed within the past year.

• At least three open accounts on credit report.

• Fewer than five credit bureau inquiries in the last six months.

• Must be at least 18 years old.

• Must provide Social Security number and a U.S. bank account.

Loan example: A five-year, $15,000 loan with a 17.4% APR would cost $376 in monthly payments. You’d pay $7,560 in total interest on that 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