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Wednesday, October 20th
Prosper is the only peer-to-peer lending marketplace in our review. What does that mean? You can expect a slightly different experience if you apply for a personal loan here, because they're all funded by investors (individuals and institutions). Though you might think that would lead to a fairly low volume of loans being requested and funded, Prosper has facilitated over $18 billion in loans to more than a million people since its start in 2005.
Need a credit score of 640+
If you have a credit score of at least 640, you can borrow anywhere from $2,000 to $40,000 through Prosper's personal loans platform. First enter the amount of the loan you want, and then you'll be taken to a screen with multiple loan purposes: big purchase, taxes, vacation, baby/adoption, and home improvement, to name a few. This is important because Prosper investors can choose to invest in your loan based on your intended use of it.
Finish the application
Next, indicate if you're applying alone or with a co-borrower, then enter the corresponding name(s) and birthdate(s) for all applicants. The rest of the questions relate to your address, your source and amount of annual income, and the email and password you'd like to use for your Prosper account. If Prosper can match that information with a credit profile, it'll be used to qualify you for a personal loan; if not, you'll be asked to take the extra step of entering your full SSN to check your credit report before being shown your loan possibilities.
Investors fund your loan
Your loan offers will show you the maximum amount that you're qualified to borrow, and then several loan options. You can choose between a repayment term of three or five years, depending on whether you want to pay less interest over the course of the loan or have smaller payments throughout. Your interest rate will be clearly displayed: no secrets there. Once you've selected the loan with the rate and terms you prefer, you will need to submit verification documents that confirm your income, your bank account information, and so forth. After that, your loan will be listed to Prosper's marketplace; the completion of your loan depends on how quickly individuals and/or institutions decide to fund your loan.
Thousands of borrowers give service a perfect score
Prosper measures up well with respect to reputation. An "A+" rating and accreditation from the Better Business Bureau show that the platform is doing a good job connecting borrowers with personal loans in a manner that is professional and competitive with other services. Looking at customer feedback, over 5,000 people have given Prosper a perfect five-star rating: nearly 90% of clients rate the service as "great" or "excellent" . We are always glad to see reviews from repeat customers too, and Prosper has its fair share of those.
Get your money in 24 hours... or 30 days... or never
Since your loan is funded by individual investors, someone on the peer-to-peer network must make the decision to lend you their money. There's a wide range of timeframes for this. Many people get their loans deposited within 24 hours - however others report that it took 30 days or more. It's even possible for a loan to expire without being fully funded. This service may work best for people that don't need their money in a hurry, and are willing to wait for their loan terms to be fulfilled.
Unique option in the personal loan industry
Prosper offers a unique take on personal loans, both for borrowers and investors alike. Their eligibility criteria might make this platform a no-go for some consumers with lower-than-average credit scores, and their funding timeframe may be a turn-off to others. Still, Prosper is a solid company and presents a worthwhile option to consider.
With inflation on the rise and an endless list of possibilities for unexpected expenses - car repairs, visits to the ER, and broken appliances, to name a few - it's no wonder that an increasing number of people are applying for personal loans.
Sound familiar? If you find yourself in need of some cash, you've probably considered borrowing from a friend or relative - but there's no guarantee that your loved ones are in a position to help, and who really wants to ask? Fortunately, you've got options that don't involve an awkward conversation with people you know. There are many lenders that specialize in personal loans ranging from $500 to as much as $100,000, with simple application processes that can be completed 100% online.
What's the catch? There isn't one, as long as you choose your lender carefully. Some providers of personal loans charge excessively high interest rates and offer shorter-than-average terms, making it harder for you to pay it back on time. On the other hand, most reputable sources of personal loans are completely transparent with their interest rates, give repayment terms of up to five years, and won't charge you any fees if you're able to pay off your loan earlier than anticipated.
How can you determine which lender is the best choice for your personal loan? That largely depends on your individual circumstances, but there are several factors to keep in mind as you consider your options. They include the following:
TopConsumerReviews.com has reviewed and ranked the best providers of personal loans available today. We're confident that this information will help you get the money you need, deposited quickly and at the lowest possible rates!
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