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Prosper Personal Loan review

No minimum income requirement makes Prosper one for everybody, though a better credit score will earn you enhanced rates.

Prosper
(Image: © Prosper)

Our Verdict

Prosper is a peer-to-peer loan service that offers decent low rates but also has high APR so it can help even those with poorer credit scores. With specialists in medical loans and a decent app, this is a very modern service. Loans can be quick but can also have better rate for those that can wait.

For

  • Soft credit check
  • Quick funds
  • No repayment fee

Against

  • Late and origination fees apply
  • Inflexible payment schedule

From our pick of the best personal loans, Prosper offers a peer-to-peer loan system, meaning it is group funded by investors. This is a good thing for those that are in no rush as it can mean more favourable rates. This is also a good thing for those with a decent credit rating as your APR is based on this and can be as low as 5.99% for some applicants, but not as low a rivals like Lightstream.

While the credit score is taken into account (minimum is 640, with Avant only needing 580), Prosper uses a balanced set of profile information to make an assessment meaning even those with poor ratings can get loans from this service. However, if you've been bankrupted or have never had a loan before, you'd be better off looking elsewhere.

While this loan does feature fees, you won't have to be locked in so the freedom to pay off and get out early is always there for you in the loan period. That said, if you stick to your monthly payments then you are able to build your credit rating that way with this loan.

There is a medical specialism with Prosper that could mean you get a very fast loan for medical bills should you need that.

With more than $14 billion in loans since its inception in 2015, Prosper is a proof that peer-to-peer loans can work well. But is it the right loan for you? Read on to find out everything you need to know about Prosper personal loans.

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Cost: How much does Prosper charge?

Prosper Personal Loans: Key Figures

APR variable: 5.99 - 36%
Loan range: $2,000 - $40,000
Min credit score: 640
Term: 36 - 60 months

  • Minimum APR: 5.99%
  • Maximum APR: 36%

Prosper loans range in rates from a pretty low 5.99% all the way up to a dizzy height of 36% at the top end of APR. Why so high? Since Prosper won't definitely say no to someone purely based on their credit score, there can be more risk involved which means a higher rate. This is also due to the peer-to-peer nature of the loan where not only Prosper needs to make money but the loaner also expects to make a return on the investment.

The loans can be spread over three to five years so the rates will vary based on how long you decide you need, with higher APR for longer loan periods. However long your loan period is the rates will stay fixed throughout.

Prosper Personal Loans review: Medical specialist

  • Up to $100,000 loans
  • Minimum credit score of 740

Thanks to some Prosper partnerships this type of loan can actually be used for medical expenses. In fact this loan is a great option for those looking to cover hospital bills of any kind. 

Prosper Healthcare Lending lets medical providers offer their patients a financing option that could be an alternative to super high interest credit cards. While the peer-to-peer loan can normally take a while to get approved, this version of the loan can be approved in as little as two minutes. That means no need for a long loan application, so you can make medical bill decisions quickly when you need to.

These specialist healthcare loans are different and range from $20,000 to $100,000 with APR ranges of 5.99 to 15.59% but require a minimum credit score of 740.

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Prosper Personal Loans Review

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Prosper Personal Loans Review

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Prosper Personal Loans Review

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Prosper Personal Loans review: Rates

  • 5.99 - 36%
  • 3 - 5 years

Prosper loans range in rates from a pretty low 5.99% all the way up to a dizzy height of 36% at the top end of APR. Why so high? Since Prosper won't definitely say no to someone purely based on their credit score, there can be more risk involved which means a higher rate. This is also due to the peer-to-peer nature of the loan where not only Prosper needs to make money but the loaner also expects to make a return on the investment.

The loans can be spread over three to five years so the rates will vary based on how long you decide you need, with higher APR for longer loan periods. However long your loan period is the rates will stay fixed throughout.

Prosper Personal Loans review: APR

  • Varies based on credit score
  • Not for bankrupt

Prosper is all about investors getting you your money. That means that the application process can take longer than the traditional loan scenario. This can be a good thing as, if you're in no rush, you can get favourable rates thanks to your ability to hold out. Lower APR is awarded to those able to hold out longer since more investors can see what they're asking for.

You can further make savings on APR if you have a good credit score. While the loan eligibility takes lots of factors into account, it's that credit score which can really affect the APR flex. 

The average Prosper borrower has a credit score of 710, though the minimum required is 640. The average borrower earns $88,500 which is quite a bit more than the national real median personal income of $30,240.

Applying won't affect your credit score thanks to a soft check yet if you do get the loan you will earn a better credit rating.

Prosper Personal Loans review: App

  • 24/7 access
  • Cancel accounts easily

Since Prosper is such a modern peer-to-peer loan system you'd expect it to come with a good app, and you'd be right. The app is handy from start to finish, meaning you can manage your loan easily through the app on your phone.

Prosper has partnered with Clarity Money for the app meaning there are lots of refined features for borrowers to access. The ability to cancel unnecessary accounts is a nice touch which can help you to lower your bills. This app means you can manage your account from anywhere 24 hours a day, seven days a week.

Prosper Personal Loans review: Fees

  • 5% late fee
  • 1 - 5% origination fee

Prosper will charge fees. That means you can expect to pay an origination fee and also you'll be paying fine fees if you miss payments. 

The origination fee ranges between one and five percent varying based on your rating, which you get based on a host of your details, not just your credit score.

The late fees are charged at 15 days past the due date where you'll need to pay $15 or 5% of the unpaid bill, whichever one is greater. If your payment bounces because you have insufficient funds there is also a fee for this of $15.

If you decide that you don't want to pay using autopay then you can pay by check but this will cost you. Check is charged at either $5 or 5%, whichever costs less.

Prosper Personal Loans review: What users say

  • JD Power 3-star rating
  • Total points of 849

Prosper has an impressive rating from the 2019 JD Power Personal Loan Satisfaction Study which looked at customer feedback. A solid three stars out of five and 849 points out of 1,000 places this in the top six, not including the military only options. 

Prosper received three stars across the categories which are: interaction, billing and payment, loan offerings and terms. It got a four star rating for the application and approval process category.

Prosper Personal Loans review: Verdict

Prosper uses a modern peer-to-peer loan system to enable more people to get access to loans where they might otherwise not. This takes into account more than just a credit score. It also offers the benefit of better rates for those in no rush as well as those with a good credit rating.

While the low-end rates are decent, the top end are ridiculously high. So while this could get you a loan you may need to seriously think about if you can afford to repay that.

As a medical loan specialist this could be helpful for anyone with medical bills looking for a better way to pay than high interest credit cards. 

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Credible is the perfect place to start your search for the best personal online loan rates. It gets rates from hundreds of banks and lenders for you, so you don't have to fill out the same details again and again.


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