Prosper Personal Loan Review
- APR
- 8.99% to 35.99%
- Eligibility and access: 5/5
- Cost to borrow: 4.1/5
- Loan terms and options: 5/5
- Repayment support and tools: 4/5
Prosper is unique because it offers peer-to-peer loans, which are funded by individual investors instead of a single lender. Peer-to-peer loans tend to be easier to qualify for, but at times, slower to fund. Here’s what you can expect with a Prosper personal loan.
- Midsize loans: Prosper offers loans with a low minimum and a high maximum borrowing amount ranging from $2,000 to $50,000. Unless you’re shopping for a very small or very big loan, Prosper can probably accommodate your needs.
- Open to borrowers with less-than-perfect credit: Prosper generally requires a credit score of at least 600 to qualify.
- Not as competitive if you have excellent credit: Prosper’s starting annual percentage rate (APR) is 8.99%. While that’s respectable, you can probably find a lower rate with a lender that specializes in excellent credit.
- Charges an origination fee: Prosper charges between 1.00% - 9.99% of your loan as an origination fee. Origination fees tend to be higher the lower your credit score is.
- Investors might not fund your loan, even if Prosper approves you: Investors have 14 days to fund at least 70% of your loan after Prosper approves your loan application. If that doesn’t happen, then your listing will expire and you won’t receive a loan.
- Can add a second person to your loan: If you don’t meet Prosper’s eligibility requirements on your own, consider a joint loan. Adding a co-applicant could improve your approval odds or help you to qualify for a better rate if that person has strong credit.
- Best for fair-credit borrowers who don’t need same-day funds: With a minimum credit score of 600, Prosper may be a good option if you have less-than-perfect credit. However, unlike some lenders, you can’t get your money the same day that you apply.
Prosper pros and cons
Signing a personal loan agreement is serious business. Unless you refinance your personal loan, you’ll be with your lender until you’ve fully paid off the money you borrowed. Review Prosper’s pros and cons before making your decision.
Pros
- Don’t need perfect credit
- Offers joint loans
- Can check rates on the mobile app without giving out your phone number or email address
Cons
- Funding for peer-to-peer loans can be slower than traditional bank loans
- Every loan comes with an origination fee (1.00% - 9.99%)
- Rates aren’t as competitive if you have excellent credit
Put Prosper on your radar if you’re having trouble getting a loan from a traditional lender. This peer-to-peer lender only requires fair credit (600+), and you can add a second person to your loan application to boost your approval odds.
In general, peer-to-peer loans are easier to qualify for because instead of one lender bearing the risk, multiple investors fund your loan. However, peer-to-peer loans aren’t always the quickest for funding.
With Prosper, investors have 14 days to fund at least 70% of your loan. If they don’t, your loan listing will expire and you’ll have to try again. Although this scenario is possible, it isn’t typical. That’s because it usually only takes one to three days for investors to bite.
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 score | 600 |
| Residency requirements |
|
| Required documents |
|
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 money 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 suits 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, depending on how interested investors are in your loan request.
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.
| Lender | Prosper | Happen Bank | Upgrade |
|---|---|---|---|
| LendingTree’s rating | 4.5/5 | 4.4/5 | 4.7/5 |
| Minimum credit score | 600 | 600 | 600 |
| APRs | 8.99% to 35.99% | 5.96% to 35.96% | 7.74% to 35.99% |
| Loan amounts | $2,000 to $50,000 | $1,000 to $75,000 | $1,000 to $50,000 |
| Repayment terms | 24 to 72 months | 24 to 84 months | 24 to 84 months |
| Origination fee | 1.00% – 9.99% | 0.00% – 8.00% | 1.85% – 9.99% |
| Funding timeline | Get money in as soon one to three business days | Get money as soon as 24 hours after approval | Get money as soon as one business day after approval |
| Bottom line | Prosper is a solid alternative to traditional lending that offers loans for fair credit. It charges an origination fee on every loan, but it may be worth it if you can’t find another lender to approve you. | Happen Bank offers comparably low APRs and origination fees. With funds available as soon as 24 hours after approval, this lender may be best for borrowers with fair credit who need money in a hurry. | Like Happen Bank, Upgrade lets you spread out your loan payments for up to 84 months. Longer loan terms can help make monthly payments more affordable, but you’ll likely pay more overall interest. |
How we rated Prosper
We evaluate personal loan lenders on more than just interest rates. Our goal is to show how accessible, affordable, transparent and supportive each lender really is.
Our categories
Every lender is scored out of 5 stars, with 5 stars being the highest rating. LendingTree loan experts determine this score using dozens of underlying data points across four weighted categories covering the full borrowing journey.
We assess how easy it is for people to qualify and apply. This includes state availability, soft-credit prequalification, membership requirements, funding speed and whether borrowers with less-than-excellent credit can get a loan.
We evaluate how affordable the loans are based on minimum and maximum APRs, loan fees and rate discounts. Lenders with unclear or potentially predatory costs receive lower scores.
We consider repayment term flexibility, loan amount ranges and whether options like secured loans, joint loans or direct-to-creditor payments are offered — plus whether the lender clearly communicates these options.
We evaluate borrower experience after funding: customer service access, hardship or forbearance programs, payment flexibility and digital tools like mobile apps or credit monitoring.
Our process
We gather data directly from lenders through their websites, disclosures and direct communication with company representatives. Our editorial team verifies and updates information regularly. We value transparency and award less favorable scores when lenders obscure or omit details.
In some cases, our editors may apply a small adjustment (no more than 4% of the overall score) to account for factors not captured by the methodology. This could include J.D. Power customer satisfaction surveys, recent regulatory actions or features that stand out in ways our rubric doesn’t measure directly.
Our editorial team applies the same scoring model and standards to every lender. Lenders cannot pay to influence our ratings. Read more about our editorial guidelines.
Frequently asked questions
Borrowers with a credit score of 600 or above may be eligible for Prosper loans. Because these loans are unsecured, they do not require collateral.
If you are concerned about your chances of approval, adding a co-applicant to your loan could strengthen your application and potentially open up more favorable terms. Choose someone you trust, with good credit and stable employment.
When you apply for a loan through Prosper, a soft credit inquiry will confirm the rate you could receive. This will not affect your credit. However, if you choose to move forward with a loan offer, Prosper may use a hard credit pull to confirm your history. This will decrease most applicants’ FICO Scores by up to five points for one year.
Your loan payment history will also affect your credit score, so make sure to meet all deadlines and pay bills in full.
Yes, you can pay a Prosper loan off early with no prepayment penalties. Partial prepayments won’t change the terms of your loan or your monthly payment, but the prepaid portion of your principal will no longer accrue interest. In other words, your monthly bill won’t change, but you will pay less interest in the long run.
Get personal loan offers from up to 5 lenders in minutes