Prosper Loans: Detailed 2023 Review and How It Works

When taking personal loans from many platforms, poor credit history can either increase your interest rate or disqualify you from access to the funds.

But, using a peer-to-peer lending platform like Prosper loans gives you access to funds that can be used for virtually anything at a good interest rate regardless of your credit history.

While considering this Prosper loans review, bear in mind that Prosper doesn’t in any way fund loans. Rather, it serves as a bridge to close the gap between a good interest rate for borrowers and better returns for investors.

Prosper loan is an online platform that connects both the borrower and investor for business

Here is all you need to know about prosper loans.ENJOY!

Prosper loans

Prosper personal loan is actually one of the largest and popular online platform which connects borrowers with investors for loans.

It is a San Francisco-based company that offers online loans that can only be used for debt consolidation, home improvement, medical expenses, new vehicles, big purchases, and other uses excluding schooling expenses.

The loan offers range from little as $2,000, up to $40,000 which last for a period of three to five terms. This online loan company was founded in 2005.

How does prosper loans work?- Review

Prosper as one of the best peer-to-peer loan platforms is very unique. It doesn’t involve the services of a bank in its operations. This serves as a benefit for both the borrower and investor depending on your stance.

The borrower gets a better interest rate while the investor gets to enjoy better ROI for his money.
Here are some criteria to consider when signing for a loan from prosper
• A debt-to-income ratio below 50%.
• Income greater than $0.
• No bankruptcies in the last 12 months.
• Fewer than five credit inquiries in the last six months.
• Minimum of three open credit lines on a credit report.

This is the minimum criteria required as prosper uses Transunion to get your credit scores.
Once all these criteria are fulfilled, below lies step to step on how to apply for prosper loans.

  • log into prosper’s website
  • Click on any of the CHECK YOUR RATE button
  • Enter desired loan amount
  • Select any of the options as to how you plan on using the loan borrowed
  • Indicate by selecting if you are getting the loan by yourself or with cosigner
  • Add the necessary information about yourself, contact information
  • Enter your annual income and monthly rent or mortgage payment
  • Then you can enter your phone number and password.

Congratulations , that’s how easy it is to sign up for prosper loan and also get your rate which would by no means affect your credit point.

Meanwhile to fully understand how prosper online lending operations,here are some 8things you should be familiar with.

Prosper offers personal loan for just about anything such as Debt Consolidation, Home Improvement,Short-term and Bridge Loans, Auto and Vehicle Loans (for purchase or refinance), Small Business Loans, Baby and Adoption Loans, Engagement Ring Financing, Special Occasion Loans, “Green” Loans (financing for installing renewable energy systems),Military Loans etc. excluding academic activities. This is so due to the fact that some of the federal laws are not quite compatible with peer to peer general rules example is the 30 days window to accept or reject a loan offer

Research has it that an average prosper borrower has an average annual income of 80,000 and credit score of 703 hence prosper offers the term three and five years of which has a fixed interest rate and monthly payment rate which can be paid using a check and Autopay(this is more preferably)

Prosper has a rating system which ranges from AA to HR .It is important you know that this rating determines the interest rate you get on you loan and most importantly some investor might find your rating very helpful as to whether to commit to the loan or not.

Application for prosper loan is without charges but below lies the necessary charges you are to incur. They include;

Origination fee
here is a onetime fee to process your loan and best part is you don’t have to pay from your pocket. This fee is deducted from your loan directly. Origination fee ranges from 2, 41% to 5% of loan amount. Here is a practical example to make you understand further. You apply for a loan of 20,000, prosper deducts their non refundable 5% from it and disburses 19,800 to you the borrower.

Roger that? Great, let’s move on

Interest rate
Check fee your personal loan interest rate though hugely dependent on your prosper rating ranges from a minimum of 7.95% to a maximum of 35.99%. Watch out for a better rating or otherwise you can go for a joint loan with a cosigner that would certainly reduce your interest rate.

Late payment fee
Failure to pay within the 15 days of the calendar due date set for your monthly repayment attracts about 5% of your monthly unpaid loans. You might really want to avoid this.

Check fee
In most cases, prosper prefers you pay using AutoPay which debits automatically at due time and this option does not in anyway posses any fee. Loan payment by check attracts about 5% of the amount being paid.

It’s of importance you note that there are no charges incurred for prepayment. Paying earlier than the due date is well accepted by prosper.

Prosper loans login

To access prosper loans, visit which is an online website account- A loans marketplace providing lending utilizing a listing and bidding process for rates.

Prosper investing

As earlier said, prosper is a marketplace for both borrowers and investors. If you are aiming to invest through prosper, here is how it works.
This can be done in three ways which includes
Investing in individual loans ; This is way very easy, you search for individual loan, click the INVEST NOW button manually on the loan and yeah input the necessary information.

Utilizing the AutoInvest Tool; This is as well very easy, just create a standard investment order which can be always be used such as loan term, prosper rating and your other criteria for loans. Then these Auto invest tools enables you to automatically invest in the loan listing that fits your very own criteria. Amazing right?

Investment through prosper API

Investor sends funds to the borrower loan and yeah must be done within 14 days
Prosper verifies the borrower
Webbank which is their partnering bank originates the loans
Investor receives a monthly payment of loan over the three or five years which would be paid by the borrower .

Prosper loans phone number

For more enquiries you can contact the customer service representative of Prosper through the following helpline phone numbers.

  • Toll-Free Number: (866) 615-6319
  • Borrower Services: (866) 615-6319
  • Compliance Department: (855) 755-1919
  • Investor Services: (877) 646-5922

Prosper loans review

Prosper has proven to be one of the best online peer to peer marketplace, here are some sourced reviews to quantify them

I’ve taken 3 loans from Prosper over the last 5 years and have had a perfect experience every time. The first time I was buying my first car and was not interested in buying from a dealership at inflated prices, and I was also afraid of the risk of losing my means of transport if I lost my job or something else happened (sorry, grew up in the hood and saw it happen constantly). I was willing to pay a premium to be able to pay cash in hand and buy whatever I wanted from a private seller. The next time I had credit card debt and wanted to refinance it and buy a new car after my first one flooded while I was at work. No hiccups. Perfect process.

Prosper is a newer type of loan company called a peer-to-peer lender. Loans are funded by individual investors, as opposed to banks or other credit companies. Prosper itself does not actually fund any part of the loan. I found it to be a very simple process of filling out a very short form on a website, including how much money I wanted to borrow and how many months/years I wanted to pay it back. Once you submit the form, it somehow looks at your credit “picture” without actually pulling a credit report, and therefore not leaving an inquiry on your credit report. Once you accept the loan and the loan terms, Prosper does pull an actual credit report that will show as an inquiry. If all looks good the loan is put out to the investors and the investors decide whether or not they want to invest enough to fund your loan.
It only took about 1/2 of a day and I received the communication from Prosper that my loan had been funded. A couple days later the loan proceeds were transferred directly to my checking account. I did not have to actually talk to anyone. All communication was done through email. They seriously could not make it any easier. It’s a great way to get money without all the intrusive stuff you have to go through with a bank or standard loan company. I would give Prosper a perfect 10 out of 10. To wrap it up, Prosper is a much simpler way to get a personal loan. A quick web form to initially apply; a quick decision that does not initially affect your credit; a quick turnaround for funding the loan and dispersing the loan. Easy as 1, 2, 3!

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