Our reviewers evaluate products and services based on unbiased research. Top Consumer Reviews may earn money when you click on a link. Learn more about our process.
Sunday, November 10th
When it comes to securing basic personal loans, Prosper offers a distinctive approach. It stands out as the sole service in our lineup operating as a peer-to-peer lending platform (though there used to be another one). Since 2005, Prosper has been fostering connections between individuals through investments, acting as the intermediary between those seeking to invest in others (literally) and those in need of financing.
Be sure to accurately specify how you'll use the loan
Here's how it works: you input the desired loan amount (ranging from $2,000 to $50,000), hit "check your rate," and specify the purpose of your loan. This step carries more weight at Prosper compared to other lenders and platforms on our list. Why? Because it operates as a peer-to-peer platform, investors select which loans to fund based on borrowers' credit profiles and the purpose of the loan. So, if you indicate "Debt Consolidation" or "Home Improvement" as your loan purpose, you might attract investors interested in funding those specific needs.
Rates and fees are average
Yes, origination fees are part of the equation with Prosper. Depending on your overall borrower profile, these fees can range from 1% to 7.99% and will be deducted from your loan amount. Here's some good news though: If you repay your loan ahead of schedule, you might be eligible for a refund of any unearned portion of the fee exceeding 5% of the original principal amount.
You may have to wait to get your loan funded
Once your application is approved, the waiting game begins. Prosper "may" fund your loan as quickly as one business day, but the timing largely depends on the lenders investing in your loan. This aspect is one reason Prosper doesn't rank higher on our list: the peer-to-peer model introduces potential delays not encountered elsewhere. While this might not pose an issue if you're flexible with your financial timeline, it could be problematic if you require immediate funds for pressing matters.
Some mixed reviews
What about reputation? At the time of our evaluation, Prosper held an "A+" rating and accreditation from the Better Business Bureau, alongside more than 450 complaints over the past three years. While the volume of complaints isn't ideal, it's reassuring to note that all received timely, appropriate responses from Prosper representatives. Additionally, over 10,000 individuals have left 5-star reviews for Prosper on Trustpilot. Many describe the process as streamlined, particularly for repeat borrowers, with loans typically funded within days.
Solidly... average
Prosper ranks as solidly average. Its unique approach to personal loans might come with some funding delays, albeit not excessive ones. Although Prosper falls a little lower in our rankings due to the origination fees and slightly less competitive interest rates, it remains a reliable lender worthy of a respectable rating from us.
Personal loans are a type of borrowing where you can get money from a bank, credit union, or online lender and pay it back over time with interest. Why would you want to take out a personal loan? There are plenty of reasons. Typically, people turn to personal loans for big purchases or expenses you can't afford to pay for all at once, like buying a car, paying for a wedding, or covering unexpected medical bills.
Personal loans can also be helpful if you want to consolidate high-interest debt from credit cards into one lower-interest loan, which can save you money in the long run. Some people also use personal loans to fund home improvement projects or even to take a much-needed vacation.But before you go rushing off to apply for a personal loan, there are a few things you should consider.
First, think about whether you really need the money and if you can afford to pay it back. Taking out a loan is a big responsibility, and you don't want to get in over your head with debt. Take a look at your budget and make sure you can comfortably make the monthly payments.
Next, you'll want to shop around and compare loan offers from different lenders to make sure you're getting the best deal. Pay attention to things like interest rates, fees, and repayment terms. You can usually get prequalified for a loan online without affecting your credit score, which can help you see what kind of offers you might be eligible for.
Speaking of applying online, should you do it? Absolutely. It's super convenient to apply for a personal loan online since you can do it from the comfort of your own home and compare offers from multiple lenders without having to visit a bunch of banks or credit unions in person.
Plus, many online lenders offer quick approval and funding, so you can get the money you need fast. Just make sure you're dealing with a reputable lender and that you understand all the terms and conditions of the loan before you sign on the dotted line.
Now that you're ready to apply for a personal loan, which lender or website is best? Here are some things to look for as you make the decision:
To help you find the best option for getting a personal loan, the experts at Top Consumer Reviews have reviewed and ranked some of today's most popular lenders and referral platforms. Use our research to start your journey with a trustworthy company and get the funds you need!
Select any 2 Personal Loans to compare them head to head