Prosper Review

Summary

• Apply for loans between $2,000 and $4,000.

• Repayment terms of up to 5 years.

• APRs range from 7.95% – 35.99%

• They have facilitated over 17 billion in loans.

What Is Prosper?

Prosper is an online loan servicing company that connects lenders and borrowers together and facilitates the process.

Launched in 2005, Prosper was the first of its kind as a peer-to-peer lending marketplace. They have facilitated over 17 billion in loans in the U.S.

Today, peer-to-peer lending is becoming more popular than applying for a loan at your local bank. Prosper is the perfect example of this, offering low rates because it isn’t an actual bank.

Prosper’s motto is to “Make Loans Simple” by offering low-interest rates, fixed terms for three or five years, a single monthly payment, no hidden fees, and no prepayment penalties.

Products Offered

Prosper offers the following:

• Personal loans

• Home equity lines of credit

Personal Loans

Personal loans from Prosper range from $2,000 to $40,000 and borrowers can apply online with a quick application process.

HELOCs

Prosper also offers home equity lines of credit with rates starting at 7.95% APR. Pre-qualification takes only a few minutes and won't affect your credit score.

Prosper offers access to a home equity line of credit for borrowers in Alabama, Arizona, Colorado, Florida, New Mexico, and Texas.

How Prosper Works

Prosper provides unsecured loans to individuals with reasonable to good credit.

Borrowers can apply for a loan through Prosper's online portal between the value of $2,000 and $40,000 at a fixed term and rate. Investors can invest in the same way their excess money to make a return.

Loan applications get rated through the company risk-rated system. It rates you on over 100 data including your FICO credit history.

Once those ratings are displayed to lenders who can decide if they want to accept funding your Prosper loan.

If they do not accept a total of 70% within 14 days your application is rejected. Loans are offered with fixed rates and fixed periods between 3 and 5 years.

Loan Requirements

Here are the requirements to qualify for a Prosper loan:

• Must be at least 18 years old

• Have a Social Security number

• Have an active bank account

• A minimum credit score of 640

• A maximum debt-to-income ratio of 50%

• At least three open accounts on your credit report

• No bankruptcies in the past year

Rates & Fees

APRs range from 7.95% - 35.99% and are calculated heavily depending on your credit history.

Example: A $15,000 loan with a five-year repayment and 17.4% APR would cost you $376 per month in payments and you'll pay a total of $7,560 in interest.

Payment Terms

Borrowers can choose between a three- or five-year repayment plan. You can't choose a shorter term to reduce interest, or a longer term to reduce payments.

How to apply for a Prosper Loan

Our Prosper Review

Pros

• You can change your payment date

• Offers a wide range of loan amounts

• Offers joint loans

Cons

• No discounted rate for AutoPay

• Charges late fees and origination fees

• Only two repayment term options available

Reputation

Prosper is known to be a reliable online peer-to-peer lending marketplace. Many of their customers use them more than once.

Many customers from building their credit receive lower APRs the next time they apply for a loan.

Their no prepayment penalties are enticing for those that need funds but have a reliable source of income and are able to pay the loan back faster.

One thing to consider when signing up to apply for a loan is the application will not be accepted overnight.

Because it is a peer to peer lending you may have to wait up to 14 days to get confirmation and your funds. However, funds are usually distributed within five days.

There are mixed Prosper reviews with the time frame it takes those investing in Prosper to receive their investment money back into their personal accounts.

However we have not found there to be an issue in receiving funds back, just the time frame it took to receive them.

Be sure to read the fine print about the loan you are lending to and what returns you are expected to receive.

Prosper.com Website and Functionality

Based on our experience and the customer feedback we have received the Prosper website is easy to navigate and full of clear information.

They have a login for lending and for borrowing. Their APR information is on their main page and they offer a clear overview of hour lending and borrowing works.

Their login site is easy to navigate and clear to comprehend. You do need to read the fine print when it comes to fees etc but it is all on their site to go over and evaluate if it is the right lender for you.

Prosper Customer Service

Our experience with Prosper has been positive. They respond to emails in a timely manner. Their site doesn’t offer live chat but they do have a contact phone number and you will get put through to a real person 1-(866) 615-6319.

Does Financer Recommend Prosper.com

Yes, Financer has had a good experience with Prosper for personal loans. It is a straightforward company that should be considered when you are looking for the right loan.

It has fair APRs especially for those with higher credit scores. Their no penalty early payment is a bonus.

We will say when comparing Prosper to other lenders it is important to ensure you are taking all fees into consideration.

Always read other Prosper loan reviews when comparing lenders.

As Prosper does have late payment penalty fees and origination fees. However, they are still reasonably priced and easy to deal with as an online lender.