- Who is Prosper Best For?
- Prosper Personal Loan Pros and Cons
- How to Apply for Prosper
- Why You Should Trust Us
- Prosper Frequently Asked Questions
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Prosper is a good lender if you're looking to apply for a joint loan or don't have the best credit score. But with its lengthy list of fees and stringent eligibility requirements, you might get a better deal elsewhere. The best personal loan for you depends on your credit score, which will determine what you qualify for and can lower your rate.
Who Is Prosper Best For?
Prosper is best for borrowers with less-than-stellar credit scores who would like to add a co-borrower to their loan application. Not all lenders allow co-borrowers, and Prosper is a solid option for those who need one. This could be a useful feature if you and your partner are looking into home renovation loans, for instance. Prosper is also a top pick in our guide to the best low-interest personal loans.
Additionally, borrowers who don't need their money as quickly may be ok with the lender's funding speed, which can sometimes be slower than other comparable lenders.
Prosper Details
Prosper loan amounts range from $2,000 to $50,000, and the company offers loans to residents of all 50 states and Washington, DC. You'll need a minimum credit score of 560 to qualify for a Prosper personal loan. Keep in mind, the higher your credit score, the better APR you are likely to receive.
You will receive an APR between 8.99% to 35.99% with Prosper, depending on your creditworthiness and ability to repay the loan, among other factors. You can apply with a co-borrower and potentially be eligible for a lower rate if their credit score is in better shape than yours.
You can take out a loan for either two, three, four, or five years. Most loans from Prosper are approved within one day, and depending on your bank, it may take one to three business days to receive funds in your bank account.
You may pay multiple kinds of fees with a Prosper loan, including an origination fee, a check payment fee, a late fee, and an insufficient funds fee. Prosper does not charge a prepayment fee if you pay off your loan early.
Compare Personal Loan Rates
Prosper Personal Loan Pros and Cons
Prosper Personal Loan Pros
- Ability to add a co-borrower to your account. If your credit score isn't in the best shape, you can apply for a joint loan to get a better rate.
- Many ways to use your loan. Prosper allows you to use your loan funds for anything from home improvement to taxes to adoption.
Prosper Personal Loan Cons
- May be difficult to qualify. You may have trouble meeting all of Prosper's qualifications for a personal loan, particularly if your finances aren't in great shape. These include a debt-to-income ratio below 50%, and fewer than nine credit bureau inquiries (excluding duplicate inquiries) within the last six months.
- Prosper may not find an investor for your loan. If your loan does not receive at least 70% funding from an investor after 14 days, Prosper will deny your application. The company says more than 99% of loans receive funding within the 14-day window.
How to apply for a Prosper personal loan
1. Decide how much you want to borrow. Choose your desired loan amount, as well as your loan's purpose. You'll also enter your name, Social Security number, and income history. You'll get an estimated monthly payment and APR range.
2. Formally send in an application and await approval. When submitting a formal application, you may need to send in proof of income, like a W-2, tax returns, or other financial documents.
3. Wait for an investor to fund your loan. For you to get your money, a Prosper investor must choose to fund your loan. Prosper is a peer-to-peer lending company that connects borrowers and investors. Per the company's website, investors usually will agree to offer funding before the approval process is completed (in three days or less). But they have up to two weeks to invest in your loans. If your loan does not garner at least 70% funding after 14 days, then the company will deny your application.
4. Make a plan to repay your loan. Work your monthly payments into your budget, and make sure you have the financial standing to pay back your debts.
Prosper Personal Loan Alternatives
Prosper personal loans vs. LendingClub personal loans
Both Prosper and LendingClub will charge you an origination fee. Prosper's origination fee varies between 1.00% to 9.99% of your total loan amount, while you'll pay a fee of 3% to 8% with LendingClub. This fee will be included in your overall APR and will be deducted from your loan proceeds.
You may get your funds marginally faster with Prosper than LendingClub. Prosper will often take between one to three days to send you your money, while LendingClub may take between two to four business days. However, keep in mind that Prosper will not send you any money until they have an investor to back your loan.
Prosper has a minimum credit score requirement of 560 to qualify for a loan, while LendingClub's requirement is unspecified. If your credit score is below 560, you might decide to add a co-borrower with Prosper or pivot to LendingClub.
Prosper personal loans vs. Avant personal loans
Prosper has a minimum credit score requirement of 560, while most of Avant's customers have a credit score between 600 and 700. Both companies offer loans to people with fair credit, but if your score is on the lower end of the "fair" threshold, you may have better luck with Avant.
Both Prosper and Avant have mobile apps to manage their personal loans on the go.
Quick tip: Check for prequalified personal loan offers from multiple lenders in a loan marketplace to make sure you find the best rate available.
Why you should trust us: How we rated Prosper
We rate all personal loan products in our reviews and guides on a 1-5 scale. The overall rating is a weighted average that takes into account seven different categories, some of which are judged more heavily than others. They are:
- Interest rate (20% of rating)
- Fees (20% of rating)
- Term lengths and loan amounts (15% of rating)
- Funding speed (15% of rating)
- Borrower accessibility (15% of rating)
- Customer support (7.5% of rating)
- Ethics (7.5% of rating)
Each category's weighting is based on its importance to your borrowing experience. Rates and fees have the most direct impact on the overall cost of your loan, so we weigh those the most heavily. Customer support and ethics are still very important parts of the borrowing experience, but do not directly tie to a personal loan's terms, so they have less of an impact on the overall rating.
See more on how we rate personal loans »
Prosper Frequently Asked Questions
Is Prosper legit? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.Prosper is a legitimate lender that is licensed to operate in all 50 states and Washington, DC. It has an A+ rating from the Better Business Bureau, a non-profit organization focused on consumer protection and trust.
Is it hard to get a personal loan with Prosper? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.To get a personal loan with Prosper, you'll need a minimum credit score of at least 560. This isn't too high — though you might find it easier to qualify for a bad credit personal loan lender if your history is in worse shape.
How long does it take to get a personal loan with Prosper? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.You'll usually get your money within three days or less — though the process can take up to a couple of weeks in some circumstances.
What credit score is needed for a Prosper personal loan? Chevron icon It indicates an expandable section or menu, or sometimes previous / next navigation options.You'll need a credit score of at least 560 to qualify for a personal loan from Prosper.
Ryan Wangman, CEPF Loans Reporter Ryan Wangman was a reporter at Personal Finance Insider reporting on personal loans, student loans, student loan refinancing, debt consolidation, auto loans, RV loans, and boat loans. He is also a Certified Educator in Personal Finance (CEPF).In his past experience writing about personal finance, he has written about credit scores, financial literacy, and homeownership. He graduated from Northwestern University and has previously written for The Boston Globe. Read more Read less 
Elias Shaya Compliance Associate Elias Shaya is a Compliance Associate on the Personal Finance Insider team based in New York City, which ensures content accuracy and editorial independence so readers are always getting up-to-date and objective financial advice.The team also works to minimize risk for partners by ensuring language is clear, precise, and fully compliant with regulatory and partner marketing guidelines that align with the editorial team. Elias is the point person for the loans sub-vertical and works with the editorial team to ensure that all rates and information for personal and student loans are up-to-date and accurate.He joined Insider in February 2022 as a fellow on the compliance team. Read more Read less Top Offers From Our Partners 
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