Best for peer-to-peer (P2P) lending
Prosper was the first peer-to-peer loan lending platform in the U.S. and is the only true P2P lender remaining today. For individual borrowers, P2P lending can mean better approval odds, especially if you have fair or bad credit. For investors, P2P lending can present an opportunity to help credit-challenged borrowers while earning a return.
Prosper offers unsecured personal loans that are best for borrowers looking for funding between $2,000 and $50,000 who possess a FICO credit score of 600 or higher. Funds can be disbursed as soon as one business day after loan approval.
Prosper evaluates individual borrowers and assigns them a risk tier based on their financial profiles. Investors can then choose which borrower(s) to fund, based on their tier. The higher the risk assessment, the higher the potential return for investors, and the higher the interest rate for borrowers. Prosper investors invest in notes, which are portions of loans. This allows them to invest in more borrowers and diversify their investments.
Once the borrower begins making monthly payments on the loan, contributing investors receive interest payments proportional to their investment in the loan.
Best peer-to-peer lender
Prosper
4.2
Credible Rating
Est. APR
8.99 - 35.99%
Loan Amount
$2,000 to $50,000
Min. Credit Score
640
Pros and cons
More details
Great for cosigned loans
Not all lenders allow potential borrowers to apply with a cosigner, but Prosper does.
Applying with a cosigner can help bolster your application and boost your loan approval odds if you're struggling to get approved on your own. Unlike a co-borrower, a cosigner has no access to the loan funds and is not the primary payer on the loan but instead serves as a backup if you should stop paying.
Cosigners should have a stable and sufficient income, as well as good credit, to improve your chances of being approved. A cosigned loan, if approved, will be recorded on the cosigner's credit report, which means that any late or missed payments on your part will hurt their credit.
Explore: Ways To Improve Your Personal Loan Application
About Prosper
Prosper was founded in 2005 to offer peer-to-peer lending as a new approach to borrowing for consumers. If you qualify with the company, Prosper connects your application with investors who decide whether to invest in your loan. With 20 years under its belt, Prosper has helped over two million customers with their financial journeys.
The company offers personal loan products for debt consolidation, home improvement, medical and dental expenses, and special occasions, and it allows cosigners and co-borrowers on its products. Loans are originated through WebBank.
How to get a Prosper personal loan
You can get a personal loan with Prosper through online lending platforms like Credible or directly through its site. Prosper operates digitally, meaning you can do everything online. To start the process, prequalify by providing information about your borrowing needs, including the loan amount and reason for your loan, and income/employment
Prequalification allows you to receive a rate and loan estimate for a potential loan, but it is not an official offer of credit. You will not hurt your credit score by prequalifying, but Prosper will run a hard credit inquiry with TransUnion if you formally apply, which could temporarily ding your score.
How to qualify for a Prosper personal loan
Credit score and financial history
Borrowers should have a FICO score of at least 600 to qualify for a Prosper personal loan. If your score is lower than this, consider applying with a cosigner who has a strong credit profile and score, as well as a stable income.
Note that even if you meet the minimum credit score requirement, you'll still need to qualify based on other factors, including your income and current debt.
Related: What Are the Requirements for a Personal Loan?
Income and employment
While Prosper does not state a minimum income requirement, that doesn't mean you can qualify without an income. Prosper will consider the stability of your income and the amount, as well as your current debt load when deciding whether to lend to you and determining your rate.
Lenders, including Prosper, want to see that you're able to afford payments on a loan. This means, you'll need enough money left over after your current debts are paid to afford the new loan. Most lenders prefer a debt-to-income ratio (DTI) below 36%.
Tip
Calculate your DTI by adding up all your monthly debt payments and dividing that amount by your gross monthly income.
Prosper personal loan purposes
- Debt consolidation
- Vehicle purchases
- Household expenses
- Home improvement
- Health care financing
- Other needs, except for post-secondary education
Prosper personal loan fees and penalties
Loan origination fees
Loan origination fees range from 1% to 9.99% for Prosper personal loans. How much you're charged depends largely on the risk you present to the lender. Origination fees are deducted upfront from the loan amount and accounted for in the APR you're quoted when you prequalify.
Prepayment fee
None.
Late fee
A late fee of $15 or 5% of the unpaid amount - whichever is greater - will be charged if you have not made your full monthly payment within 15 calendar days after your due date.
Insufficient funds fee
You'll be charged $15 for each returned or failed payment.
Check payment fee
If you pay by check, you'll be charged a check payment fee equal to either 5% of your payment or $5, whichever is less.
How Prosper compares to other lenders
Credible rating
Credible rating
Credible rating
How to contact Prosper
- Email: [email protected]
- Phone: 866-615-6319
Phone support is available from 5 a.m. to 5 p.m. PT Monday through Friday for new loan applications, and from 5 a.m. to 7 p.m. PT Monday through Friday for existing customers.
You can send payments via regular mail or overnight to:
Regular Mail (Do not send correspondence)
Prosper Marketplace Inc.
P.O. Box 886081
Los Angeles, CA 90088-6081
Overnight Mail
Lockbox Services - #0136081
Prosper Marketplace, Inc.
3440 Flair Dr. El Monte, CA 91731
Rating Prosper personal loans
We collected over 700 points of data on 24 lenders to determine which lenders are best overall, and which are the best for specific uses and needs, such as personal loans for debt consolidation and personal loans for bad credit and fair credit. Criteria were sorted into categories, which were weighted as follows to determine the best personal loans overall:
- Rates and fees:18%
- Loan terms:18%
- Customer experience: 17%
- Eligibility: 14%
- Customer satisfaction: 10%
- Efficiency: 10%
- Options for poor and no credit: 9%
- Discounts: 4%
Examples of specific criteria collected include each lender's minimum and maximum fixed APRs, minimum and maximum loan amounts, minimum credit score and income requirements, time to fund, repayment terms, fees, and discounts. For a complete list of metrics, as well as how we collected and verified data, please see our full Personal Loans Lender Rating Methodology.
FAQ
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