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Prosper Review

Sunday, November 10th

2024 Personal Loan Reviews

Prosper Review 3 Star Rating

Prosper

3 Star Rating
  • Loans available up to $50,000
  • Origination fees ranging from 1% to 7.99%
  • Peer-to-peer lending platform
  • Accredited with an "A+" rating by the BBB
  • Established since 2005

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.

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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.

Where Can You Find the Best Personal Loans?

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.

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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...

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:

  • Can the lender offer you the amount you're thinking of borrowing? Some personal loan providers only go up to $10K, while others go as high as $100K.
  • Rates and fees. It's important to know not only how much you'll be paying in interest but also in fees (like origination). Fees are often taken out of the loan money before it hits your account, which can affect the amount of the loan you need to request.
  • Funding timeframe. How long will it take for your loan money to get to you? Can you get it deposited into your bank account in a day or less? If you need the money quickly, choose a lender that can get it done fast.
  • Reputation. Does the lender or referral service have a good reputation? Do people who have used it to borrow money recommend it? Has the Better Business Bureau given the company a good grade?

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!

Compare Personal Loans

Select any 2 Personal Loans to compare them head to head

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  • Upstart
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