Prosper Personal Loans: 2023 ReviewCheck Your Rate
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Overview of Prosper
Pros and cons
Loans can be used for a wide variety of household purposes Can apply with joint applicant No fee for paying off loan early
Charges origination fees and other fees Loans cannot be used for postsecondary educational expenses Loan amount cannot be changed once set
Pros of Prosper
Cons of Prosper
Prosper Personal Loan Terms, Rates, and Fees
Who May a Prosper Personal Loan Be Right For?
Consumers who need to borrow a $2,000 personal loan Borrowers seeking a $4k loan for unexpected expenses Borrowers who need quick personal loans from a legitimate lender rather than a loan shark Consumers who need vacation loans to help cover travel-related expenses
Who Prosper May Not Be Right For
Consumers who need to borrow large personal loans of up to $100K Borrowers who don’t want to pay origination fees and daily simple interest on a personal loan Consumers who prefer open-end credit vs. closed-end credit Students enrolled in a postsecondary educational program
What to Watch Out for With Prosper Personal Loans
These quick personal loans may charge APRs as high as 35.99% Prosper personal loans cannot be used as private student consumer loans Failing to pay and defaulting on a personal loan can have a major impact on your credit score There’s no guarantee that your loan request will receive full funding from Prosper’s investors
Prosper Personal Loan Eligibility Requirements
At least 18 years of age Have a personal U.S. bank account Have a Social Security number Meet minimum underwriting standards (640+ credit score) Borrowers and co-borrowers must be U.S. residents in a state where loans through Prosper are available (not available to borrowers residing in Iowa or West Virginia)
Repayment Options for Prosper Personal Loans
Automated recurring payments Manual one-time payments online Payments over the phone Mailing a personal check, money order, or cashier’s check
How to Apply for a Prosper Personal Loan
Apply online. Applicants can get started by answering basic questions on a digital platform, including how much money you would like to borrow and your reason for the loan. Applicants can check to see if they prequalify for funding through Prosper’s platform. Seeing your loan options won’t affect your credit score, but applying for one may trigger a hard inquiry that can cause your credit score to drop by several points. Verify information. Prosper may request applicants and co-applicants to provide additional supporting documents for verification purposes. You may need to provide proof of identity, such as a current driver’s license, passport, or other government-issued photo identification card. Prosper may decline your application if it is unable to independently verify the information in your documents. Accept the loan. Approved applicants may accept the loan offer at this stage. Borrowers may receive their Prosper personal loan funds within one business day. In some cases it may take up to three business days to receive funding in your bank account. It’s your choice whether to accept the loan or cancel the loan application.
Alternatives to Prosper Personal Loans to Consider
LightStream: LightStream is a Truist Financial Corporation brand that offers consumer loans ranging from $5,000 to $100,000. Loan terms can range from 24 to 144 months depending on the purpose of the loan, and the APR may range from 5.99% to 24.49%. One drawback with LightStream personal loans is the funds cannot be used to buy stocks or bonds. Marcus by Goldman Sachs®: Marcus by Goldman Sachs offers personal loans ranging from $3,500 to $40,000. Borrowers can choose loan terms ranging from 36 to 72 months, and the APR can range from 6.99% to 24.99%. Marcus personal loans feature no late fees and no origination fees, but nonprime or subprime borrowers may have difficulty qualifying. Upstart: Upstart is a cloud-based lending platform offering personal loans ranging from $1,000 to $50,000. Borrowers can choose between three-year or five-year terms, and some creditworthy applicants may qualify for interest rates under 7%. One drawback with Upstart personal loans is you may be charged an origination fee that’s deducted from your loan proceeds. Lantern: Lantern by SoFi can help you quickly find online personal loans ranging from $1,000 to $50,000. Just fill out one simple form to compare possible lending options and select a lender of your choice.
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