Prosper (US) Reviews: Peer-to-Peer Lending Platform

Prosper (US) Reviews: Peer-to-Peer Lending Platform

ByAcademyFlex Finance Consultants

Did you know Prosper has funded over $13 billion in loans? This shows how popular alternative finance is in the US. More people are choosing online loans over traditional banks.

Prosper is changing the game in personal loans. It connects borrowers with investors directly. This new way of lending is making credit scores and loans more accessible.

In this review, we’ll explore Prosper’s unique offerings. We’ll look at how it works, the types of loans it offers, and what makes it stand out in online lending.

Key Takeaways

  • Prosper has funded over $13 billion in loans since its launch
  • Loan amounts range from $2,000 to $40,000 with 3 or 5-year terms
  • Interest rates vary from 6% to 36% based on creditworthiness
  • The average Prosper borrower has a credit score of 710
  • Prosper offers an alternative to traditional bank loans
  • The platform connects borrowers directly with investors
  • Prosper’s overall rating is 3.6 out of 5 stars

Introduction to Prosper and Peer-to-Peer Lending

Prosper leads the fintech revolution in the US, starting peer-to-peer lending. It connects borrowers with investors, offering a new way to finance.

What is Prosper?

Prosper is a digital lending space that changes how we borrow and invest. Since 2005, it has helped over 1.4 million people with more than $25 billion in loans. Loans range from $2,000 to $50,000, lasting 2 to 5 years.

How peer-to-peer lending works

Peer-to-peer lending skips the middlemen. Borrowers post their loan needs on Prosper. Investors then pick which loans to fund. This method can lead to better rates for borrowers and higher returns for investors than savings accounts.

Brief history of Prosper

Prosper was the first in the US to offer peer-to-peer lending. It faced early challenges but has grown, aiding over two million people. Its strong reputation is shown in its 4.6 Trustpilot rating from over 12,300 reviews as of January 2024.

Feature Details
Loan Amount Range $2,000 – $50,000
Loan Terms 2 – 5 years
APR Range 8.99% – 35.99%
Origination Fee 1% – 9.99%
Minimum Credit Score 600 (FICO)

How Prosper Works for Borrowers

Prosper offers personal loans from $2,000 to $50,000. These loans can be repaid over 2 to 5 years. The application starts with a quick “check your rate” step on their website.

To qualify, you need a minimum FICO credit score of 600. However, the average score of Prosper borrowers is 705.

Eligibility depends on credit scores, income, and debt-to-income ratio. Prosper helps with debt consolidation and home improvements. Since 2005, they have served over two million customers, with an average loan of $14,339.

During the application, Prosper does a hard credit inquiry with TransUnion. Aim for a debt-to-income ratio below 36% for better approval. Once approved, funds can arrive in as little as one business day.

Loan Feature Details
Loan Amount $2,000 – $50,000
APR Range 8.99% – 35.99%
Loan Terms 2 – 5 years
Minimum Credit Score 600
Origination Fee 1% – 9.99%

Prosper allows co-borrowers, which can improve approval chances for those with fair credit. The platform is available in all U.S. states except Iowa and West Virginia. With high ratings on Trustpilot and mobile apps, Prosper offers a user-friendly experience for borrowers seeking personal loans.

Prosper Loan Types and Features

Prosper offers a variety of unsecured loans to fit different needs. Since 2005, it has helped over 1.14 million borrowers get more than $19 billion in funding.

Personal Loan Options

Prosper’s personal loans are for many reasons, like paying off debt, improving homes, or buying big things. Loans range from $2,000 to $50,000, with an average of $14,399.

Loan Amounts and Terms

Prosper has flexible loan terms of two to five years. It looks for borrowers with a credit score of 640 or higher. The minimum score is 560. In early 2024, the average FICO score was 705.

Interest Rates and Fees

Interest rates on Prosper loans depend on the borrower’s credit. As of May 2024, the average APR was 23.40%, from 8.99% to 35.99%. Origination fees range from 1% to 9.99% of the loan amount.

Fee Type Amount
Origination Fee 1% – 9.99%
Late Payment Fee 5% of payment or $15 (whichever is greater)
Check Payment Fee $5 or 5% of payment (whichever is less)
Insufficient Funds Fee $15

Prosper doesn’t charge for paying off loans early. It offers flexible payment dates and the chance for co-borrowers to improve loan chances.

Conclusion

Prosper is a top choice in the world of peer lending. It offers loans from $2,000 to $50,000 with APRs from 7.95% to 35.99%. This makes it a great option for many borrowers.

The average loan is $13,969, and borrowers usually have a credit score of 710. This shows Prosper is good for those with fair to good credit.

As an investing platform, Prosper gives unique chances to both borrowers and investors. Loans are funded in just 4-6 days. This is a big plus.

The platform is very transparent, earning a 5-star rating for this. It also has a 4.7-star rating on Trustpilot from over 12,700 reviews. This shows strong customer satisfaction.

Prosper allows co-applicants and was named the best personal loan for fair credit by Bankrate in 2024. It has a 1% to 9.99% origination fee and no autopay discount. But, its flexible terms and high customer satisfaction make it a good choice.

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Author

  • The AcademyFlex Finance Consultants team brings decades of experience from the trenches of Fortune 500 finance. Having honed their skills at institutions like Citibank, Bank of America, and BNY Mellon, they've transitioned their expertise into a powerful consulting, training, and coaching practice. Now, through AcademyFlex, they share their insights and practical knowledge to empower financial professionals to achieve peak performance.

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