Quick Review: Prosper personal loans are best for people with excellent credit, as they have the best chance of qualifying for Prosper’s minimum APR of 7.95%. People with credit scores as low as 640 can still qualify for a loan from Prosper, but applicants who barely meet the minimum requirements are much more likely to get an APR toward the top end of Prosper’s range. It could be as high as 35.99%, one of the higher personal loan rates on the market.
Prosper offers personal loans of $2,000 to $40,000, over either three or five years. However, one other drawback is that there is an origination fee of 2.41% to 5%, which is built into the loan’s APR. In other words, someone who qualifies for the lowest interest rate possible and has a 2.41% origination fee will pay the minimum APR of 7.95%.
Below, you can examine the pros and cons of Prosper personal loans and see how WalletHub rates them in three key categories: Terms, Requirements & Application, and Reviews & Transparency.
Prosper Personal Loan Terms
|APRs||6.95% - 35.99%|
|Loan Amount||$2,000 - $40,000|
|Loan Terms||36 or 60 months|
|Origination Fee||2.41% - 5%|
|Late Fee||5% (min $15)|
|Minimum Credit Score||Fair*|
|Minimum Income||Not disclosed|
|Loan Purpose||Debt Consolidation, Home Improvement, Big Purchase|
|Time to Receive Loan Money||3 - 10 business days|
*According to multiple third-party sources
Prosper Interest Rates, Fees & Other Terms
Category Rating: 3.5/5
Rates on Prosper loans can be anywhere from 7.95% to 35.99%. Prosper offers low interest rates for people with the best credit and income, but higher rates for people in less ideal financial situations. These rates are fixed, so they won’t change at all during the life of the loan.
Prosper’s origination fee will be between 2.41% and 5% of the loan’s amount. It too depends on factors such as your credit history and income. This origination fee isn’t charged separately but rather built into your loan’s interest rate. The 7.95% to 35.99% range already includes origination fees.
Prosper does not charge any fee if you pay off your loan earlier than expected. Their monthly late fee is $15 or 5% of the payment amount, whichever is greater.
Prosper offers good-sized loans, as you can borrow up to $40,000. You’ll also have substantial time to pay loans off, at 36 or 60 months.
Prosper’s APR range gets a good score from WalletHub because while it’s not the absolute cheapest on the market, it is competitive and reasonable. Prosper also scores points for their high loan amounts and long payoff periods. They’re held back a bit by their origination fee.
Prosper Loan Requirements & Application Info
Category Rating: 4/5
The Prosper credit score requirement is at least 640, according to Prosper representatives, though you are still allowed to try with a lower score. The Prosper income requirements are not public knowledge.
There are other Prosper loan requirements, too. In order to qualify for a Prosper personal loan, you will need to be at least 18 years old and a U.S. citizen or a permanent resident with a Social Security number.
Prosper lets you pre-qualify, which shows you what rates you could potentially get before actually submitting an application. You will have to create a password to log in to the Prosper site and put in some personal information like your address and income to check for pre-qualification. Checking your potential rate in this manner will not affect your credit score, but applying for a loan will, temporarily. You can apply for a Prosper personal loan online or over the phone (1-866-615-6319). Prosper allows joint applications.
Prosper scores well in this section for clearly disclosing their credit score requirements, which many lenders do not, and for offering pre-qualification. They lose a few points for not offering alternatives to an SSN.
Prosper Personal Loan Reviews & Transparency
Category Rating: 3.8/5
- Better Business Bureau: Prosper has an A+ rating by the BBB. It has been accredited since 2012.
- Consumer Financial Protection Bureau: There have only been around 50 complaints filed with the CFPB against Prosper personal installment loans. Some complaints include having trouble paying off a Prosper loan with another loan and a case of fraud. Prosper has given “timely” answers to all previous complaints.
- WalletHub: Prosper has a user rating of 3.6/5.
- Transparency: Prosper’s personal loan terms are very transparent. You can easily find them online. In addition, Prosper is open about their credit score requirements, which is not too common with personal loan lenders. Prosper doesn’t disclose a minimum income requirement, though.
Prosper rates highly on both transparency and reputation, which demonstrates that they are a trustworthy company.
Prosper Personal Loans vs. Popular Competitors
|APRs||6.95% - 35.99%||6.98% - 19.98%||10.68% - 35.89%|
|Loan Amounts||$2,000 - $40,000||$3,500 - $40,000||$1,000 - $40,000|
|Loan Terms||36 or 60 months||12, 24 or 36 months||36 or 60 months|
|Minimum Credit Score||Fair*||Fair*||Fair*|
In order to provide the most accurate review of Prosper personal loans, WalletHub used 17 key metrics grouped into three overall sections: Terms, Requirements & Application, and Reviews & Transparency. We rated each section on a scale of 0 to 5, with 5 being the best, and then averaged the scores of the three sections to produce an overall rating for the loan.
- The “Terms” section includes information about how expensive the loan is, including rates and fees. It also takes into consideration how much consumers can borrow and how quickly they must pay it back.
For companies where APR and fee ranges differ greatly by state, we used data from the most populous state serviced by the company. Prosper loan terms do not fluctuate significantly by state, however.
- The “Requirements & Application” section examines how easy it is to apply for a loan and how long it takes to receive the money. It also looks at exactly who is eligible to apply.
- The “Reviews & Transparency” section measures the loan provider’s reputation as well as how clearly the lender discloses its terms and requirements. This takes into account user reviews and information from watchdog organizations.
The average of these three scores reflects how close a loan offer is to WalletHub’s definition of a 5-star loan. For more information, please read WalletHub’s full methodology.