Prosper Review Summary
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 they usually end up with an APR as high as 35.99%.
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.
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
- Overall APR range: Prosper offers personal loans with an interest rate range of 6.95% - 35.99%. These rates are fixed, so the rate a borrower is assigned won’t change at all during the life of the loan.
- How rates are determined: The exact rate you will get mainly depends on your credit score, income, loan type, and desired amount.
- Origination Fee: Prosper loans come with an origination fee of 2.41% - 5% of the loan amount. This fee is deducted from the initial amount you receive.
- Late fee: Prosper has a late fee of either $15 or 5% of the payment amount, whichever is greater.
- Failed payment fee: Prosper charges a $15 fee if your method of payment is declined.
- Early repayment fee: There are no penalties for paying off a loan early.
- Loan amounts & timelines: Prosper loan amounts range from $2,000 to $40,000, and their payoff times go from 36 to 60 months.
Prosper Loan Requirements & Application Info
Category Rating: 4/5
- Minimum credit score: Prosper requires their applicants to have a credit score of 640 or higher to qualify for a personal loan, according to their representatives.
- Minimum income: Prosper does not disclose minimum income requirements.
- Age: You must be at least 18 years old to apply for a Prosper personal loan.
- Citizenship: You must be a U.S. citizen or permanent resident.
- Identification: You must have a Social Security number.
- Pre-qualification: To see the rates you might get before actually applying, create an online account and submit some personal information, such as your address and income. This process will not affect your credit score.
- Ways to apply: You can apply for a Prosper personal loan online or over the phone at (866) 615-6319.
- Joint loans: Prosper allows co-applicants. Both individuals will be considered during the application process, and they will be equally responsible for repaying the loan.
Prosper 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 2.7/5.
- 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.
Summary: Prosper Personal Loans Scores by Review Category
|Rates, Fees & Other Terms||3.5/5|
|Requirements & Application Info||4/5|
|Reviews & Transparency||3.8/5|
Prosper vs. Popular Competitors
|APRs||6.95% - 35.99%||6.98% - 19.98%||8.05% - 35.89%|
|Loan Amounts||$2,000 - $40,000||$3,500 - $25,000||$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.