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Prosper Personal Loan Review
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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. Through Prosper, borrowers can find a wide range of loan amounts, as well as competitive interest rates and fees. However, while there is no prepayment fee, there are other fees such as an origination fee and a check processing fee. Keep reading to learn more about loans you can get through Prosper.
- Prosper personal loan highlights
- Prosper at a glance
- Eligibility requirements
- What borrowers are saying about Prosper
- Applying for a personal loan through Prosper
- Who’s the best fit for a personal loan through Prosper?
- Alternative personal loan options
Prosper personal loan highlights
- Two loan term options: The company offers loans in fixed terms of either 36 or 60 months; however, there’s no penalty for paying off your loan sooner than this.
- Prepayment penalty: One of the best things about Prosper is that it doesn’t have any prepayment penalties. That means you can pay off your loan with no additional fees for doing it ahead of schedule.
- Fixed APRs: Prosper offers fixed APRs that range between 7.95% and 35.99% APR. By answering a few questions on its site, you can instantly find out your lowest possible rate.
- Origination fee: Prosper charges loan origination fees that range from 2.41% - 5.00%, which seems in-range compared to other peer-to-peer platforms like LendingClub, which charges 3.00% - 6.00%.
- Other fees: If repaying your loan by check, you will be charged a check processing fee of 5% of your payment amount, or $5 (whichever is lower). There’s also a late fee of 5% of the unpaid amount, or $15, whichever is greater.
Prosper at a glance
- APR range: 7.95% to 35.99%
- Minimum credit score: Not specified
- Terms: 36 or 60 months
- Origination fee: 2.41% - 5.00%
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Eligibility requirements
- Minimum credit score: Not specified.
- Minimum credit history: Not specified.
- Maximum debt-to-income ratio: Below 50%.
In addition to having a debt-to-income ratio that’s below 50%, borrowers must also have fewer than five credit bureau inquiries within the last six months, no bankruptcies in the past year, and a stated income greater than $0.
Prior to analyzing these borrower criteria, the company will obtain a credit report from TransUnion to determine initial borrower eligibility.
What borrowers are saying about Prosper
On LendingTree, recent Prosper customer reviews have been positive, citing an easy, straightforward application process that allows them to receive funds quickly.
Others mention they had a positive customer service experience and found the interest rates to be competitive with other offers they received. The one real point of dissatisfaction in reviews stems from the loan origination fee, which, according to the company’s website, ranges from 2.41% - 5.00%.
“Customer service was great,” said Shirley from Powder Springs, Ga. “I just don’t like the fee they charge you.” To avoid any unwelcome surprises, we recommend specifying this amount before closing on the loan agreement.
Applying for a personal loan through Prosper
Borrowers interested in Prosper will find the online loan form relatively straightforward. After completing a brief questionnaire which includes details about your income, monthly housing expenses and desired loan amount, you’ll instantly receive a quote from Prosper with your lowest eligible rates. If you’re interested in moving forward, you’ll be prompted to complete your loan application by selecting the loan amount and term.
At this point, your loan application will be reviewed by the underwriting team, which usually takes seven days or less. During this time, you’ll be able to check your loan application status by logging into your account and looking at the Account Overview page.
Once the underwriting and verification process is complete, your loan will be listed to allow investors to commit your desired amount. Investors will only have 14 days to commit funds to your loan; if they don’t come up with the full amount, it’s possible your loan isn’t granted.
If all goes well, a transfer of your loan funds will be initiated into your bank account on the day the loan is originated. It may take up to three days for the transfer to be completed. If you prefer to apply over the phone, you can call 877-611-8801.
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Who’s the best fit for a personal loan through Prosper?
Getting a personal loan through Prosper would be a good fit for someone who’s comfortable applying online (and can benefit from the convenience of this process), and who’s ready to commit to one of two repayment term options. Keep in mind that because Prosper is a peer-to-peer marketplace, that this might mean your loan isn’t approved based on a lack of committed funds. You should have a few backup lenders in mind, and make sure to apply well before you need the funds.
Someone looking to borrow through Prosper should also be ready to commit to the loan origination fee, which may be higher than with competing lenders.
Be sure to shop around for a loan before settling on a lender. If you don’t have strong credit, you may look into bad credit personal loans.
Alternative personal loan options
LendingClub
- APR: 7.04% to 35.89%
- Minimum credit requirement: 0
- Terms: 36 or 60 months
- Origination fee: 3.00% - 6.00%
LendingClub is a loan marketplace. Through it, you may find similarly competitive rates and origination fees. The fixed terms for loans through LendingClub are for up to $40,000.
Like Prosper, LendingClub doesn’t charge prepayment fees, but it does charge check processing and late payment fees. The real reason to apply for a personal loan through LendingClub is for the lower credit qualifications might be lower, and if accepted you’ll enjoy many of the same benefits.
Upstart
- APR: 4.37% to 35.99%
- Minimum credit score: 600
- Terms: 36 or 60 months
- Origination fee: 0.00% - 8.00%
Upstart offers a similar product to Prosper in that its loans have the same fixed terms, slightly more competitive interest rates (depending on what you qualify for), and the potential to pay a lower origination fee.
Upstart has serviced over 300,000 borrowers and offers loans in amounts up to $50,000. Upstart borrowers can also pay off loans early without worrying about a penalty fee and may get their funds faster than they would from other lenders. According to the Upstart website, 99% of applicants receive funds one business day after accepting their loans.
Marcus by Goldman Sachs
- APR: 6.99% to 19.99%*
- Credit requirements:
- Terms: 36 to 72 months
- Origination fee: No origination fee
Marcus by Goldman Sachs® offers competitive interest rates and similar loan terms when compared to Prosper. Possibly one of the biggest perks of working with Marcus by Goldman Sachs is that it doesn’t charge any fees, ever. According to the company site, Marcus won’t charge you origination fees or late fees. Instead, late payments will be tacked on to your total loan amount.
The company offers loans up to $40,000 with fixed rates. If you qualify for its lower rates, this lender could end up saving you money on fees.
*Your loan terms are not guaranteed and are subject to our verification of your identity and credit information. To obtain a loan, you must submit additional documentation including an application that may affect your credit score. The availability of a loan offer and the terms of your actual offer will vary due to a number of factors, including your loan purpose and our evaluation of your creditworthiness. Rates will vary based on many factors, such as your creditworthiness (for example, credit score and credit history) and the length of your loan (for example, rates for 36 month loans are generally lower than rates for 72 month loans Your maximum loan amount may vary depending on your loan purpose, income and creditworthiness. Your verifiable income must support your ability to repay your loan. Marcus by Goldman Sachs is a brand of Goldman Sachs Bank USA and all loans are issued by Goldman Sachs Bank USA, Salt Lake City Branch. Applications are subject to additional terms and conditions.