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2023 Prosper Personal Loan Review

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, commissioned or otherwise endorsed by any of our network partners.

Personal loan rating: 4.3/5
  • Accessibility: 5/5
  • Rates and terms: 3.2/5
  • Repayment experience: 5/5
Personal loan overview
  • APR range: 6.99% – 35.99%
  • Loan terms: 24 to 60 months
  • Loan amount: $2,000 to $50,000
  • Minimum credit score: 580
Our verdict: Because of its peer-to-peer lending model, Prosper may be a good fit for fair-credit borrowers looking for an alternative option to traditional lending.

Prosper personal loans are provided through a peer-to-peer lending marketplace, where the company handles all loan servicing for both the borrower and the investor, which can make the process faster and easier.

  • Flexible loan amounts: Prosper offers loans with a low minimum and a high maximum borrowing amount ($2,000 to $50,000) which offers flexibility to consumers.
  • Competitive interest rates: This lender offers competitive annual percentage rates (APR), as low as 6.99%. However, Prosper’s maximum APR is pretty steep at 35.99%.
  • Charges an origination fee: Prosper charges an origination fee that ranges between 1.00% - 5.00%.
  • Potentially slow funding timeline: Getting approved for a loan can take up to five business days. If you’re approved for a Prosper personal loan, it can take anywhere from one to three business days to receive your funds.
  • Allows for co-applicants: If you don’t meet Prosper’s eligibility requirements on your own, this lender offers the option to apply with a co-applicant. This can increase your chances of getting approved for a personal loan because it lowers the perceived risk to the lender.
  • Best for fair-credit borrowers: With a minimum credit score of just 580, Prosper may be a good option for consumers with less-than-perfect credit scores. Potential borrowers may also fill out a joint application.

Prosper pros and cons

As a lender, Prosper offers flexibility and competitive interest rates to consumers; however, it’s not without its downsides. Here are a few pros and cons to keep in mind when considering a Prosper personal loan.

ProsCons

 Allows for co-applicants

 Low minimum borrowing amount

 Competitive interest rates

 Charges an origination fee (1.00% - 5.00% )

 High maximum APR (35.99%)

 May take up to three days for funding

If you’re looking for a small personal loan, Prosper offers loans as low as $2,000. This lender also offers competitive APRs — as low as 6.99%. However, keep in mind that the lowest rates tend to go to borrowers with the strongest credit profiles. If you don’t have a great credit score, you may be able to qualify for a Prosper personal loan if you fill out a joint application.

However, a Prosper personal loan may come with an origination fee that can range anywhere from 1% to 5%. On top of that, Prosper also has a high maximum APR (up to 35.99%) and it can take up to three business days until you receive funding after you’ve signed your agreement.

Prosper requirements

To qualify for a personal loan with Prosper, you must be at least 18 years old and meet these additional requirements:

Minimum credit score640 (600 for co-borrowers)
Minimum credit score640 (600 for co-borrowers)
Residency requirements
  • Must be a U.S. citizen
AND
  • Loans not available in Iowa or West Virginia
Required documents
  • Must have Social Security number
  • Must have verifiable bank account

If Prosper’s loan options won’t work for your borrowing needs, be sure to shop around for a lender that helps you meet your financial goals and can offer you the best-fitting rates, terms and amounts.

How to get a loan with Prosper

Though it may take some time before you actually receive your personal loan funds from Prosper, this lender’s application process is simple and straightforward.

Prequalify

First, you’ll need to see if you prequalify for a personal loan with Prosper. During the initial application process, you’ll need to specify how much you need, the purpose of the loan and your personal information. You’ll also need to disclose whether you plan to apply as an individual or with a co-borrower.

Hard credit pull

After you find out whether you prequalify, you’ll need to choose which of Prosper’s loan offers best suit your needs. Should you decide to proceed with the loan, you’ll have to submit documentation verifying your identity as well as your income. You may also have to submit to a hard credit pull. Approval can take up to five business days.

Sign loan contract

If you’re officially approved for a Prosper personal loan, you’ll need to sign a loan agreement. From there, it can take one to three business days to receive your funds.

If you’re having trouble qualifying for a Prosper personal loan on your own, consider improving your chances of getting approved by utilizing strategies such as applying with a co-borrower or raising your credit score.

How Prosper compares to other personal loan companies

Even if you believe Prosper aligns with what you’re looking for in a personal loan, it never hurts to shop around and compare other lenders. Here’s how Prosper stacks up against similar personal loan lenders.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

How Does LendingTree Get Paid?

LendingTree is compensated by companies on this site and this compensation may impact how and where offers appear on this site (such as the order). LendingTree does not include all lenders, savings products, or loan options available in the marketplace.

LenderProsperLendingClubUpgrade
LendingTree’s Rating4.3/53.8/54.6/5
Minimum credit score580600580
APRs6.99% to 35.99%8.05% to 36.00%8.49% to 35.97%
Loan Amount$2,000 to $50,000$1,000 to $40,000$1,000 to $50,000
Repayment term24 to 60 months24 to 60 months24 to 84 months
Origination fee1.00% - 5.00% 2.00% - 6.00% 1.85% - 8.99%
Funding timelineReceive funds within one to three business daysReceive funds as soon as 24 hours after approvalReceive funds as soon as one business day of approval
Bottom LineProsper is a solid alternative to traditional lending that offers competitive rates and a lower origination fee than some other lenders.LendingClub offers a low minimum credit score requirement for borrowers and quick funding, so this lender may be best for borrowers with low credit who need funds in a hurry.Upgrade offers some of the most flexible repayments terms on the market. While it does have a high origination fee, borrowers may receive their loans quickly.

How we rated Prosper

To come up with our star rating for personal loan companies, LendingTree considered 22 data points across three categories:

  • Accessibility: We paid attention to whether lenders offered loans to nontraditional borrowers, as well as those without excellent credit scores. We also checked if lenders offered soft credit pulls, and whether they were transparent about eligibility criteria other than credit scores.
  • Rates and terms: We wanted to know if lender rates, terms, amounts and fees were not only transparent, but competitive.
  • Repayment experience: We based this category on lenders’ reputations, customer support availability and unique benefits.

The data points reflect every step of the process to shop and apply for, borrow and repay personal loans. A five-star lender, for instance, has flexible eligibility requirements, offers you the chance to prequalify without commitment and supports you in zeroing your balance.

The 22 data points, culled from the lenders themselves, determine the overall rating. We score lenders consistently, sometimes awarding partial points, so that you can make apples-to-apples comparisons when shopping around.

LendingTree isn’t paid for conducting these reviews, and lenders don’t have control over their content. With our reviews and ratings, we aim to give our users the objective and exhaustive information they need to make the best possible decisions.

Frequently asked questions

Yes — Prosper has provided more than $22 billion in loans to more than 1.3 million borrowers, according to its website. This lender is backed by investors, including big names such as Sequoia Capital — which also backs brands such as DoorDash and Zoom — and Institutional Venture Partners — which invests in companies like Discord and Klarna.

In order to qualify for a personal loan, Prosper customers must have a credit score of at least 580. If you are unable to meet this requirement, consider applying for a Prosper personal loan with a co-borrower.

Prequalifying for a personal loan through Prosper will not hurt your credit score. However, if you choose to move forward with the loan, you may have to submit to a hard credit inquiry, which can temporarily cause your credit score to go down by a few points.

 

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