What can Prosper Personal Loans be used for?
Prosper helps borrowers access fixed rate unsecured personal loans with terms of three or five years. Borrowers can use their personal loans for a variety of purposes, including:
- Debt consolidation.
- Home improvement.
- Medical fees.
- Household expenses.
- Vehicle purchases.
Borrowers cannot use Prosper Loans to pay for post-secondary education.
Consumers who need cash to cover a medical procedure can also turn to Prosper Healthcare Lending, a subsidiary of Prosper Marketplace. Prosper offers joint personal loans that allow you to add a second person to your application instead of a co-signer. Both borrowers assume responsibility for the loan.
Prosper does not originate loans itself, but instead buys loans issued by Utah-based WebBank. Prosper uses investor funds to purchase loans from WebBank, and investors receive a share of payments from borrowers.
Individual borrowers can apply online or over the phone, while applicants with a co-borrower cannot apply over the phone. Prosper will typically review your application within five business days, but investors can begin pledging funding while the review process is still ongoing. Each loan application is given a “prosperity rating” ranging from AA to HR which reflects the risk of investing in that loan.
Prosper says loans typically receive full funding commitments from investors within one to three days. You could receive your loan funds as soon as one business day after accepting a loan offer and completing other final steps.
Prosper offers unsecured fixed rate loans, with loan amounts ranging from $2,000 to $50,000. Loans are available for terms of three or five years.
Prosper charges an origination fee of between 2.4% and 5% of your loan amount. Prosper charges $15 for failed or returned payments, and customers who wish to pay by check must pay a fee of 5% of their payment or at most $5. Payments that are 15 days or more late incur a late fee of 5% of your outstanding monthly payment or at least $15.
If you apply for a joint loan and your co-borrower has a good credit rating, you may get a lower rate on your loan.
Prosper has a minimum credit score of 640 for his personal loans. It also has a maximum debt to income ratio of 50% and you must have less than five credit bureau inquiries in the last six months. Prosper also verifies that your credit file contains at least three open forms of credit on file. You must have some form of income, and Prosper does not offer loans to those who have filed for bankruptcy within the last 12 months.
If you want to check out Prosper’s loan options, you can check your rate based on a soft credit check that won’t affect your credit score.
Prosper requires a minimum credit score of 640 and also considers factors such as your income, DTI ratio and whether you have filed for bankruptcy in the last year.
WebBank makes loans to borrowers across the United States before selling and assigning them to Prosper. You can become an investor through Prosper in 30 states and Washington, DC
Select your desired loan amount and purpose, your credit score range, and your state to see estimated annual percentage rates and loan terms.
Prosper has an A+ rating with the Better Business Bureau and is BBB accredited. The company has an excellent rating on Trustpilot with a 4.7 out of 5 star rating based on over 10,000 reviews.
In 2021, the Consumer Financial Protection Bureau received 22 personal loan complaints about Prosper. Obtaining the loan and payment problems were the most common complaints. All complaints were answered promptly and closed with an explanation.
Prosper has an overall rating of 3.8 out of 5 stars from US News, with 2.9 stars for affordability, 4.6 stars for customer service, and 4 stars for eligibility. The median of personal lenders in US News ratings is 4.
You can reach Prosper at 866-615-6319 Monday through Friday 9 a.m. to 8 p.m. EST or Saturday 9 a.m. to 5:30 p.m. ET. Customers can also email [email protected] or fill out an online form to get in touch.
Customers can check their rate, apply for a loan, upload documents, check the status of their application and make payments online.
- Borrowers with a credit score of at least 640.
- People who need to borrow between $2,000 and $50,000.
- Individuals who prefer to access several loan offers.