Looking for excellent rates on personal loans, and have a good credit score? Check out the loan offering from Prosper, one of the oldest peer-to-peer lending platforms. At Prosper, you can borrow as much as $35,000 at a rate as low as 5.99%, for up to 5 years. The peer-to-peer lending platform can approve your loan in as little as one business day. Scroll down for our Prosper app review and to find out whether a Prosper loan is a good fit for you.
These are the key facts you need to know about the Prosper app:
Loan range: $2,000 – $35,000
Loan term: 3 or 5 years
Establishment fee: Varies, 1% up to 5%
APR range: 5.99% – 35.99%
Approval time:1 to 3 business days
Loan CriteriaIncome requirement: $89,000
Credit score: 640 and up
Officially known as the Prosper Marketplace, Prosper has been connecting lenders and borrowers since 2006 and has issued over $7 billion in loans. Functioning as a peer-to-peer lender Prosper connects small investors with people who need personal loans.
Prosper facilitates loans to borrowers who have less than perfect credit scores, but as a platform, Prosper does not cater for borrowers with average to poor credit histories.
Your borrowing options from Prosper are flexible with loans from $2,000 to $35,000. APRs can be low – even 5.99% – if your credit score is solid, but applicants with imperfect credit histories could be charged an APR as high as 35.99%. Note that Prosper will charge a fee for issuing your loan: the fee varies with the loan size and the fee will be added to your loan total.
As we’ve just explained Prosper acts as a marketplace, connecting small investors with individual borrowers. So, individuals can invest with Prosper. This means that your investment funds are issued as small loans to Prosper borrowers. You receive a cut of the interest charged, with your return depending on the way loans perform. Prosper investors may receive a lower return if a lot of borrowers default on their loans, but because your investment is spread over many loans you are unlikely to lose large sums. At the moment Prosper estimates an average return of 6.9% for investors.
Prosper does not publish a mobile app per se but Prosper does have a solid website with full functionality for both borrowers and investors. Some of the things you can do on the Prosper website include:
- Apply for a loan
- Manage repayments on your loan
- View your balance and term
- See fees and charges
- Invest funds as a Prosper investor
Two of the biggest Prosper competitors are the LendingClub app and the SoFi app. LendingClub has less strict approval criteria, you can apply for a LendingClub loan with a credit score as low as 600 whereas with Prosper you need a credit score of at least 640. SoFi, on the other hand, offers a starting APR of 5%, which is a bit lower than the 5.99% of Prosper. Either way, you will need a good credit score to get a personal loan with an APR lower than 10%.
For many people, the quick processing time of a Prosper loan application will be attractive, with loans issued in as little as one working day and usually not taking longer than three working days.
Note that Prosper will charge you a late payment fee that is the higher of $15 or 5% of the payment due, higher than the charge imposed by SoFi. However, there is a 15-day grace period for late payments.
More on Personal loan apps
It is easy to apply for a loan with Prosper. Start at the Prosper website, and click “Check your Rate” to obtain a personal loan quotation. You will get an offer from Prosper, or the provider may indicate it is unable to provide you with a loan.
If you get a rate offer you can proceed to choose your term. Next, provide the necessary documentation and information to Prosper. Once everything is in order Prosper will approve your loan and you could get the funds in your account in as little as one working day.
The wide range of APRs that Prosper attaches to its loans means that the provider is willing to lend to applicants with a range of credit scores. You may qualify for a very low APR, making a Prosper loan a great way to finance purchases or to consolidate debt. Even if you can’t get a good APR with Prosper you may still find that it provides better rates than credit card providers or payday lenders. Always compare your loan options as different providers have different scoring criteria and you may find a better rate elsewhere.