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Prosper Review

Thursday, December 8th

2022 Personal Loan Reviews

Prosper Review 3.5 Star Rating


3.5 Star Rating
  • Peer-to-peer lending platform
  • "A+" rated and accredited by the BBB
  • Minimum credit score of 640 for new borrowers
  • Repayment terms of 3 or 5 years
  • All fixed-rate loans
  • Origination fees of 2.4% to 5%
  • Wide range of APRs

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.

Best Personal Loans

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.

Where Can You Find the Best Personal Loans?

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.

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Personal Loan FAQ

Any way you like! Personal loans typically don't come with restrictions on how they're used. Paying off high-interest credit cards, splurging on a luxury item you've always wanted, taking a much-needed family vacation: you can use your personal loan for all of that and more.
Most banks and credit unions offer personal loans, but your financial institution might not offer the most competitive rates. There are many lesser-known sources that want to earn your business with lower APRs and more personalized attention over the life of the loan.
That depends on a number of factors, such as your credit history and income. It's definitely worth shopping around, just like you would when buying a car or other big-ticket item. Consider using a service that allows you to get loan offers from multiple lenders with a single application: that will make it more likely that you'll get the best possible rate and terms on your personal loan.
When you're making an initial inquiry to see if you qualify for a personal loan, it usually involves a "soft pull" on your credit - verifying your identity, credit score, and current debts. That will not lower your credit score. However, if you take the next step and apply for a specific loan, expect that your credit score may dip a (but only temporarily).
Most lenders allow you to complete the process online, from beginning to end. That's a big perk for people who can't get to a brick-and-mortar bank during regular business hours.
Personal loans are available in amounts ranging from $100 to $100,000. Before you get too excited and start planning how you'll spend the money, keep in mind that the amount you'll actually be approved for depends on your financial situation. The higher your credit score and the lower your outstanding debts, the more likely it is that you will qualify for a bigger loan.
The application process can be extremely fast: some lenders can approve your loan in just a few minutes. Once you accept a personal loan offer, most providers will direct deposit the funds within 1-5 business days.
As with any kind of loan, it's important to keep track of the details: don't borrow more money than you can comfortably repay, make on-time payments every month, and communicate with your lender if unforeseen circumstances arise (e.g. unemployment, natural disaster, disability) and you need forbearance or other accommodations. It's also wise to check out the reputation of the lender: reviews from previous clients and a rating from the Better Business Bureau can be very informative as you decide which provider to use for your personal loan.
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Continued from above...

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:

  • Loan amount. How much can you borrow? Some lenders offer a maximum loan of $4,000 or less, while others can fund loans of $25,000 or more. Make sure the provider you choose can actually give you the money you need.
  • Loan terms. How much will you pay in interest? How long will you have to repay the personal loan? Are there any origination fees, prepayment penalties, or other costs associated with the loan?
  • Eligibility. What is required to qualify for a loan? Some lenders have minimum credit score requirements, residency requirements, or other criteria you need to meet to be approved for a loan.
  • Referral service or direct lender. Some personal loan platforms work as a one-stop shop to compare offers from multiple institutions, while others fund your loan directly. A referral service is a great way to make sure you're getting the lowest possible interest rates, but you may still have to go through the application process with the lender itself.
  • Reputation. What do other borrowers say about their experience with the lender? Has the company gotten a positive evaluation from the Better Business Bureau?

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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