Prosper Loans Review

Prosper was founded in 2005 as the first peer-to-peer lending marketplace in the United States. Since then, its fixed-rate installment loans have helped more than 770,000 people achieve financial independence, borrowing amounts from $2,000 to $40,000. 

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    If you’re thinking about consolidating your debt or you need to quickly raise some cash to cover unexpected expenses, Prosper’s personal loans offer a low fixed rate that never goes up.

    One of the first questions many people ask before they approach a lender is whether it’s safe or not. You can trust Prosper Loans. It’s a reputable lender and is backed by leading investors including Sequoia Capital, Francisco Partners, Institutional Venture Partners, and Credit Suisse NEXT Fund. Continue reading for our Prosper review to find out if the lending rates make it the right loan service for you. 

    Why Get an Installment Loan From Prosper? 

    Prosper is a great choice for borrowers that have a relatively high credit score and a decent average income that will allow them to keep up with payments. Its loans can be used for any purpose, which means you won’t be faced with a barrage of intrusive questions about your intent for using the money you’re lending once you’ve applied. 

    All of Prosper’s loans come with limited terms, but its rates and fees are very reasonable in comparison to other lenders. You can even pay off your loan early, with no pre-payment penalties

    What Does Prosper Offer? 

    Prosper’s personal loans can be used for any purpose, with personal loans including vehicle loans, small business loans, baby and adoption loans, engagement ring financing, debt consolidation loans, home improvement loans, green loans, and even military loans. 

    One of the best things on offer from Prosper is its joint loans, as these make borrowing much more accessible for people with a poor credit. Even if your individual application was denied, you can still apply for a joint loan. Prosper’s personal loans are a much easier way of raising financing in comparison to racking up credit card bills – which is often one of the reasons borrowers need a loan in the first place. 

    Eligibility Criteria 

    In order to apply for a loan from Prosper, you’ll need a minimum credit score of 640, but the average is 717. That’s slightly higher in comparison to most other lenders, so if you’re looking for installment loans for bad credit, you may want to try another loan provider. In addition to your minimum credit score, you’ll also need a minimum credit history of two years, but the average is 11. Surprisingly, there’s no minimum annual income needed, but Prosper’s average borrower has an annual income of approximately $89,000. Prosper’s loan services also require you to have filed no bankruptcies within the past year and you must have a maximum debt-to-income ratio of 50% (excluding your mortgage). 

    Pros and Cons 


    • No minimum annual income 
    • Option to change payment dates 
    • Joint loan options for people with low credit scores 


    • Fees of $15 or 5% are charged on late payments
    • Maximum loans only go up to $40,000 

    How to Apply for Prosper Loans 

    The application process is relatively simple. Whether your Prosper loan is for debt consolidation or you’re simply using it as a financing option for home renovation, you’ll only need to select your loan amount and answer a few questions to get your lowest eligible rates instantly. The team will check your credit score and credit history, but this won’t affect your credit rating. 

    Make sure you check the interest rates before you decide how much you should borrow. Always choose the offer with terms that work best for you. After you’ve submitted your application, somebody will get back to you within three working days to let you know if your application has been successful. If it has, your funds will go straight into your bank account. 

    Rates, Terms, and Fees 

    Prosper’s personal loans are all payable in monthly installments. Borrowers won’t be subject to rate hikes or payment increases as all of its loans are offered on fixed rates from 7.95% to 35.99% APR. The interest rates aren’t the best but they’re certainly not terrible, making Prosper a relatively decent financing option. 

    You can borrow between $2,000 and $40,000 over terms of between three and five years. Loans can’t be extended, even for an emergency. And unlike some creditors, Prosper doesn’t pay your creditors for you if you’re consolidating debt. 

    One thing you need to be aware of is Prosper’s late fees. It charges borrowers late fees of $15 or 5%. If you’re borrowing $40,000, those late fees can quickly add up. We’ve covered all of the main points you need to be aware of here, but like all lenders, Prosper has a massive list of terms you can read in full over on its website. 

    Bottom Line 

    Prosper’s online reviews from borrowers are positive across the board and it's definitely a borrower you can trust. Its fixed-rate loan amounts of between $2,000 and $40,000 make it a great choice for borrowers who need a quick influx of cash to consolidate existing debts and are in a position where they know they’re able to pay off over three or five-year terms. If you’ve been turned down for a personal loan before because of your poor credit score or credit history, you should definitely check out Prosper’s joint loan options. These make it possible for people who are usually turned down for finance to get a personal loan if they’re able to go in with someone who has a high credit score.