Prosper Review

Compare Prosper to other peer-to-peer lenders The Loan Exchange and LendingClub. Learn about Prosper's features, fees, and rates, along with customer feedback.

Updated on June 10th, 2020

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Prosper is a peer-to-peer lending platform that helps individuals get fixed term, unsecured personal loans. Aside from providing access to small personal loans, users can also create an investment account with Prosper and search for and invest in personal loans for steady, monthly returns.

Pros and Cons:

Pros

  • Easy online application.
  • No prepayment penalties.

Cons

  • Small loan amounts.
  • Limited loan products.
  • Additional fees.

Review:

Prosper is a peer-to-peer lending platform for borrowers and investors. Prosper allows for a very low minimum investment amount which is great for first-time investors.

Prosper is also an attractive option for potential borrowers looking for a small personal loan, offering a speedy application and funding process, reasonable interest rates, and no early repayment penalties.

Highlights:

  • Fast and simple application process.
  • No prepayment penalty.
  • Option to invest with low minimum investment amount.

Shortcomings:

Prosper offers limited loan products: small, unsecured personal loans and home equity lines of credit (only in four states).

Reputation:

Prosper is BBB accredited and has an A+ rating. Customer reviews on Consumer Affairs are divided between those strongly advocating Prosper for fast and efficient processing, the convenience they offer, and for great customer service, and those expressing strong dissatisfaction with the application review process itself, reporting glitches and misinformation.

Rates:

Loan Type

Loan Amount

Interest Rate

Terms

Personal Loan

$2,000 - $40,000

6.95% - 35.99%

3 or 5 year terms

Fees:

Fee

Amount

Origination Fee

2.4% - 5%

Check Processing Fee

$5.00 or 5% of your payment, whichever is lesser

Late Payment Fee

$15.00 or 5% of the unpaid monthly payment amount, whichever is greater

Insufficient Funds Fee

$15.00 /returned or failed payment

Prosper vs. The Loan Exchange
Prosper vs. The Loan Exchange:

Prosper and The Loan Exchange are very different in that Prosper only facilitates personal loan products while The Loan Exchange also provides access to substantial term loans for businesses. The Loan Exchange has more lenient borrower qualifications but may offer much higher rates than Prosper.

Prosper vs. The Loan Exchange Comaprison:

Offer

Prosper

The Loan Exchange

The Loan Exchange

Loan Type

Personal loan

Personal loan

Business loan

Max. Loan Amount

$40,000

$100,000

$250,000

Terms

3 or 5 years

47 to 180 months

6 to 120 months

Interest Rate

6.95% to 35.99%

From 13.33%

From 14.90%

Min. Credit Score

640

500

500

Prosper vs. LendingClub
Prosper vs. LendingClub:

Depending on your loan needs, Prosper can be limiting as they only offer personal loans and home equity lines of credit (only in four states). LendingClub offers more financing options, including business loans and auto refinancing. Both offer personal loans up to $40,000 with 3 or 5-year terms and similar rates.

Prosper vs. LendingClub Comparison:

Offer

Prosper

LendingClub

LendingClub

Loan Type

Personal Loan

Personal Loan

Business Loan

Max. Loan Amount

$40,000

$40,000

$500,000

Terms

3 or 5 years

3 or 5 years

6 to 60 months

Interest Rate

6.95% to 35.99%

6.95% to 35.89%

9.77% to 35.71%

Min. Credit Score

640

600

640

Other Products:

Investing.

Users can earn money by investing in personal loans through Prosper. The average historical returns on Prosper investments are 5.1%. Investors can search for individual loans that meet their criteria and conveniently manage and track their investments using Prosper's user-friendly Invest app. The minimum investment amount is only $25.00.

Prosper at a Glance:

Loan Types

Personal loans, home equity lines of credit

Max. Loan Amount

$40,000

Interest Rate

6.95% to 35.99%

Payment Terms

3 or 5 years

Payment Schedule

Monthly

Customer Support

Phone and email

Key Information:

Legal Name

Prosper Funding LLC

Founder

Chris Larsen

Founding Date

Jan 01, 2005

Address

221 Main Street, Suite 300, San Francisco, CA 94105

Number of Employees

417

Number of Customers

1000000

Email

support@prosper.com

Telephone

1 (866) 615-6319

Website

https://www.prosper.com/

FAQs:

Is Prosper a good lender?

Prosper is a good option for individuals who can't get credit with traditional financial institutions and are looking for a small amount of funding. Prosper offers unsecured personal loans with reasonable rates and no prepayment penalties.

Do Prosper loans hurt your credit?

You can check your rate with Prosper without it affecting your credit score as Prosper performs a soft pull.

Is Prosper better than LendingClub?

In comparison to LendingClub, Prosper is somewhat limited, as they only offer personal loans. LendingClub provides access to more loan products but has more stringent qualification requirements, aside from the minimum credit score requirement.

Can you pay off a Prosper loan early?

Yes, you can pay off a Prosper loan early. Prosper does not charge any prepayment penalties.

What fees does Prosper charge?

Prosper charges several additional fees, including an origination fee, check processing fee, late payment fee, and an insufficient funds fee for returned or failed payments.

Does Prosper charge an origination fee?

Yes, Prosper charges an origination fee of 2.4% to 5% of the total loan amount.

Does Prosper do a hard inquiry?

Prosper only performs a hard inquiry when a loan has been issued and accepted.

What documents are needed for a Prosper loan?

Prosper may request a copy of a current driver’s license, passport, or other government-issued photo identification card, recent paystubs, tax returns, or bank statements to verify an applicant's identification and income or employment.

How fast does Prosper fund?

According to Prosper, the average time in which their borrowers receive funds after accepting a loan offer is within five days.