By: Heather Hanks Apr. 14, 2020
Prosper can help you save money by extending you a personal loan with a low rate and fixed terms. They offer no hidden fees and a convenient pay as you go plan. There are also no prepayment penalties. This means you can pay off your loan as quickly as you would like to save interest.
The best part is that applying won't hurt your credit. The downside is that your APR is based on your credit score. If you have less than perfect credit, then you can expect to pay higher than normal interest rates. Here's everything you need to know about Prosper personal loans and whether or not they're right for you.
on Prosper website
Prosper is a peer-to-peer lending company that was founded in 2005. According to the company's website, Prosper has lent out more than $14 billion in loans to more than 890,000 people. The company claims that its borrowers are able to invest in a way that is socially and financially rewarding.
You can apply online for a fixed loan term of between $2,000 and $40,000 depending on your eligibility. The company states that is backed by several leading investors. These include Francisco Partners, Institutional Venture Partners, Sequoia Capital, and Credit Suisse NEXT Fund.
The company has two primary locations:
221 Main Street, #300
San Francisco, CA 94105
4127 E Van Buren St, #100
Phoenix, AZ 85008
They offer personal loans with loan terms that range from either three years or five years. The company promises that you will pay one fixed rate payment per month. They guarantee your rate will never go up. You can use your personal loan in any way you'd like. It can be used for loan consolidation, to pay off debt, or for major purchases. You can also use your personal loan to fund a vacation or to make home improvements. The company urges you to have a credit score of 640 to apply. They do not offer services in Iowa, North Dakota or West Virginia.
Here are some key highlights of the personal loan terms at Prosper:
Loan amounts: range from $2,000 to $40,000
You must be 18, a permanent US citizen, and live in an eligible state to quality
Must have a credit history of two years
Loan terms: range from three years to five years
You can check your rate online without affecting your credit score
Maximum debt-to-income ratio is 50%
You must have a credit score of 640 to apply
Funding time ranges from one to three business days after approval
Must have an active checking account
APRs: depend on your credit score and range from 7.95% - 35.99%
No minimum annual income required
Fixed payment dates
Research shows that the people who borrow from Prosper have an average credit score of 710. They also have an annual income of approximately $89,000. The average minimum credit history is 11 years. The maximum debt-to-income ratio is 50% excluding mortgage. Because of these averages, Prosper is ideally suited for those with good credit who make above-average wages. This shouldn't deter you from applying if you don't meet these averages. Prosper can work with you if you have less than perfect credit and make less than $89,000 per year.
The company states that they have no hidden fees, but there are several you should be aware of. First is the origination fee of 2.41% to 5%. Prosper also has a late fee of 15% or $5 of the unpaid amount, whichever is more. Finally, there is an insufficient funds fee of $15. You’ll want to make sure that you have sufficient funds in your account and make timely payments to avoid additional charges. Aside from these upfront charges, there are no hidden fees.
Prosper is a peer-to-peer lending service. This means that they do not offer loans directly. Instead, they connect you to one of their investors where you will borrow directly from them. Peer to peer lending works when borrowers are connected to private investors or peers. This occurs through an online or internet-based platform such as Prosper. Investors put their money into one or more loans, and this is the funding source for your loan. Prosper is a third party company that gets the party started by facilitating the lending process. When you accept a loan through Prosper, you'll be working directly with them but their investors will be funding your loan. You can manage your account online through the process for website 24/7.
You can check your eligibility by visiting the Prosper website where they will have you enter in some basic information. You’ll need to select your loan amount and answer several questions to determine your eligibility. Next, you’ll need to choose the offer that works for you. After you’re approved, you should expect to see your funds in your account within one to three business days. The money is deposited directly into your checking account. This means that you also need to have a checking account to be eligible.
Prosper likes to see that you have a minimum credit history of two years. Most Prosper customers have a minimum credit history of 11 years. You’ll want to make sure you have recent activity to prove your account status. Prosper states that they use a variety of data to determine your eligibility. This may include your income, employment status, and credit score. Keep in mind that each state has different regulations. You may want to check with your state to determine your eligibility and whether or not you qualified to borrow from Prosper.
Prosper uses a risk-rating system that takes into account several different data points to determine your eligibility. Prosper is staffed with investors that make the final decision as to whether or not your loan will be funded. Your application will expire if you don't receive funds within three business days. Your origination fee of 2.41%-5% of the loan amount will be charged upon approval of your loan. Prosper does not allow you to change your payment date. It also does not directly pay your creditors if you consolidate your loans. Prosper guarantees that you were repayment terms will never change. You can expect to pay the same monthly amount every time.
The following is a loan example for someone with excellent credit. If you were to take out a three-year $10,000 personal loan would have an interest rate of 11.74% and a 5.00% origination fee for an annual percentage rate (APR) of 15.34% APR. You would receive $9,500 and make 36 scheduled monthly payments of $330.9. A five-year $10,000 personal loan would have an interest rate of 11.99% and a 5.00% origination fee with a 14.27% APR. You would receive $9,500 and make 60 scheduled monthly payments of $222.39. Origination fees vary between 2.41%-5%. Personal loan APRs through Prosper range from 7.95% to 35.99%, with the lowest rates for the most creditworthy borrowers. Eligibility for personal loans up to $40,000 depends on the information provided by the applicant in the application form.
Eligibility for personal loans is not guaranteed and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. Refer to Borrower Registration Agreement for details and all terms and conditions. All personal loans made by WebBank, Member FDIC.
This may include your name, address, and date of birth. You may also need to input your phone number, email address, and social security number. Prosper may ask you several questions about your credit and financial history. You'll need to enter your checking account number so that the funds can be transferred once you're approved. Having all of this information on hand before you get started is beneficial. Any information that Prosper needs from you that isn't immediately provided will delay your funds.
This means that they will pull your credit report without it affecting your score. Prosper also takes into account other data when determining your eligibility and loan terms. They may want to see your financial activity in your checking account. Prosper may also check your employment status and annual income. They like to see that their borrowers are in good financial standing. Borrowers with good credit are often less of a risk to work with and will repay their loans in a timely manner. Prosper does not charge a prepayment penalty. You can pay off your loans as quickly as you'd like. Doing so can save you money in interest.
After choosing the loan you want, you’ll need to set up an account by entering the username and password of your choice. Your origination fee may vary depending on your financial background. This amount can be deducted from your loan before you receive the money. The origination fee is included in your APR and it is based on your credit history. No matter what loan option you go with, Prosper guarantees that your long-terms will not change. This means that your rates will remain the same and will not go up. You can choose from either a three-year or a five-year loan term.
Prosper uses TransUnion to obtain your credit score after you apply. You will need to meet the following criteria to be approved for a personal loan through Prosper:
Prosper prefers to work with customers with good financial standing and a high credit score. This is because these individuals are viewed as less of a risk. There is no minimum annual income required. The more money you make, the better your loan terms will likely be. You will also want to make sure that you have a credit score of at least 640 before applying. Prosper wants to see an active checking account with good financial behavior. They will also want to see that you have good credit history with no late fees or negative credit items.
The benefit of working with Prosper is that you can be funded as much as $40,000 with a three to five-year loan term. You can use this money however you want. Personal loans can be used to make home improvements or for vacations. You can even use it to cover rent or car troubles. The downside to working with Prosper is that you may be subject to high interest rates. This information is based on your credit history, but can also be influenced by other financial behaviors. The company has been in business since 2005, which makes it highly reputable than newer companies. However, they have stricter requirements than other lenders and it can be hard to obtain a loan through them.
Here are some of the pros and cons of working with Prosper.
When compared to other personal loan lenders, Prosper’s terms are not as flexible. They also have stricter eligibility requirements. Other lenders allow joint loan applications and include modification plans for borrowers who have trouble making payments on time. You can also find other lenders that do not charge late fees or high origination fees. Prosper has better than average interest rates but only if your credit is good. Their requirement of a 640 credit score is high compared to other lenders. Their debt to income ratio of less than 50% is also stricter than average.
However, Prosper allows you to borrow more money with loan amounts of up to $40,000. This is higher than other lenders. They also fund your loan quickly once approved and do not have requirements when it comes to how you spend your money. They guarantee that your rates will be fixed and do not go up no matter how long your contract is. They also do not require you to have a minimum annual income. Here's how Prosper compares to other personal loan lenders.
Prosper: APR 7.95% - 35.99%, credit score 640, origination fee 2.41% to 5%, best for debt consolidation
LendingClub: APR 6.95% - 35.89%, credit score 600, origination fee 1% to 6%, ideal for borrowers with good credit
SoFi: APR 5.81% to 15.37%, credit score 680, no origination fee, ideal for borrowers who want flexible repayment terms
If you need a loan to help take care of health care expenses, then you may want to look into a Prosper healthcare loan. In addition to personal loans, Prosper offers financing that helps cover medical bills. Like their personal loans, Prosper’s healthcare loans have a fixed monthly repayment option. They guarantee that their rates will not go up no matter if you take out a personal loan or a healthcare loan.
To be eligible for a healthcare loan, your healthcare provider must be enrolled with Prosper. They must also offer financing options. If your healthcare provider does not meet these qualifications, then you can contact Prosper to find a medical practitioner in your area who does. There are two different programs you can go with when you choose a Prosper healthcare loan. Both programs depend on your creditworthiness and financial needs.
Standard healthcare plans
loan amounts range from $2,000 to $35,000, APR's range from 7.95% to 35.99%, recommended credit score is 640, and you should expect to see your funds within several business days
Exceptional healthcare plan
loan amounts range from $20,000 to $100,000, APR ranges from 5.99% to 15.59%, recommended credit score is 740, and you can expect to see your funds within several business days
Applying for a Prosper healthcare loan is easy. You'll need to check your rates by filling out an online application. Prosper will do a soft credit pull on you, which will not affect your report. Underwriting software will complete your application process once you settle on a loan offer. Exceptional health care plans will be reviewed by a live loan officer due to the higher amount of money offered.
Taking out a healthcare loan can help pay off medical debt with a better interest rate so that you save money. You can also set up a monthly payment plan with your insurance company or medical provider if you're having trouble making healthcare payments.
The following is a list of additional loans that Prosper offers:
Engagement ring financing
Special occasion loans
Debt consolidation loans
Auto and vehicle loan
Home improvement loans
Short term and bridge loans
Small business loans
Baby and adoption loans
Although Prosper does not dictate how you spend your personal loan, it's a good idea to tell them if you're using your loan for one of the above-mentioned reasons. Doing so can help get you better rates and more personalized terms.
Prosper is a peer-to-peer lending company that specializes in personal loans. They are ideally suited for borrowers with good credit and who make an annual income of at least $89,000. Prosper likes to see that you have a credit history of at least two years and a debt to income ratio of less than 50%. Loan terms range from three years to five years, and APR’s range from 7.95% to 35.99%.
Prosper uses your data to determine your eligibility requirements. They may ask to see your employment status and financial activity. They will also want to see that you have an active checking account and that you have less than seven credit bureau inquiries on your report within the past six months. They also want to see that you have a minimum of three open accounts on your credit report.
When compared to other lenders, Prosper has stricter than average eligibility requirements. The benefit of working with Prosper is that their monthly rates will not go up. You are guaranteed a fixed rate and loan terms. Prosper also offers other loan options, such as healthcare. You can borrow as much as $100,000 with their exceptional healthcare plan to cover your medical bills. The application process is easy and can be done online within a few minutes. Once approved, you will need to set up an account and you will have 24/7 access.
CreditNervana promises to keep our information as accurate and up-to-date as possible. However, you should always consult a financial advisor for specific questions about personal or business finances and investment opportunities, especially if you are looking in your area. Working with a trained professional who is familiar with your case is a safe and guaranteed way to make the best investment decision possible. Please review our terms and conditions before making any decision based on the information we provide. Financial institutions are constantly changing. Because of this, it’s a good idea to cross check the information you read here with any company you are considering working with.
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