Prosper Personal Loans Review: What You Need to Know Before You Borrow
When you’re looking for a personal loan, it can be difficult to sift through all of the options. One name that often pops up is Prosper, a popular online lender. Prosper offers personal loans ranging from $2,000 to $50,000, but is this the right lender for you? In this article, we’ll go over everything you need to know — from fees to rates — so you can make an informed decision.
See if you can get approved for a personal loan or debt consolidation loan that is right for you: https://theyukonproject.com/product-comparison/compare-personal-loans/?swcfpc=1
Prosper Personal Loans: An Overview of Products and Features
When you visit Prosper’s home page, you’ll see they offer three main products:
- Personal loans
- Credit cards
- Home equity loans
For this review, we’ll focus on Prosper personal loans, which are popular for debt consolidation, home improvements, major purchases, and more.
If you received a pre-approved offer code in the mail, there’s a link on their website to enter it. Even if you skip this step, you’ll still receive the same offer during your application.
Speed of Funding & Prepayment Terms
Prosper claims you can receive your funds in as little as one business day after verifying your application and completing bank processing. They also highlight no prepayment penalties, which is standard practice across most lenders — so don’t put too much weight on this feature when comparing options.
Checking Prosper Reviews: What Real Borrowers Say
Prosper prominently displays its reviews from Trustpilot — and with over 13,000 reviews, they seem to have a solid reputation. However, to get the most accurate picture, look beyond the five-star ratings.
Red-Flag Reviews to Watch
Sort reviews by one- and two-star ratings and scan for recurring themes like:
- Application or approval difficulties
- Poor customer service experiences
- Issues faced by self-employed borrowers
When looking at the most positive reviews, pay attention to people who have completed their loan term. These long-term borrowers can give you a better sense of the full Prosper loan experience.
Prosper Personal Loans: Not Truly Peer-to-Peer Anymore
While Prosper began as a peer-to-peer lender, that’s mostly part of its origin story. Today, most loans are funded by institutional investors rather than individuals. You can still invest in Prosper loans as a passive investor, but you won’t be the one directly choosing to fund a specific borrower’s loan.
How to Choose the Right Loan Term and Monthly Payment
When you apply, Prosper allows you to pick your loan amount and repayment term. Keep these key tips in mind:
- A longer loan term means lower monthly payments but higher total interest paid.
- A shorter term means higher payments — but you’ll save money over the life of the loan.
Always choose the shortest term you can comfortably afford to minimize the total interest you pay.
Understanding Prosper Personal Loan Fees and Charges
Before applying for a Prosper loan, review the fees you could face:
- Origination Fee: 1%–9.99% (deducted from the loan)
- Late Payment Fee: $15 or 5% of the unpaid amount
- Check Payment Fee: 5% or $5
- Insufficient Funds Fee: $15
That origination fee is especially important. If you’re charged near the top end of that range, it could significantly increase your effective APR.
Credit Score Requirements & Co-Applicants
Prosper loans require a credit score of 640 or higher — but approval isn’t guaranteed. Even with a higher score, Prosper looks at other factors like income and debt-to-income ratio.
If you don’t qualify on your own, you can add a co-applicant with better credit and income. Just remember that co-borrowers will be equally responsible for repaying the loan — and missed payments will appear on both of your credit reports.
Prosper APRs: What Rates Can You Expect?
Prosper’s APRs range from 8.99% to 35.99%, with an average rate around 24.79%. Remember that the APR includes the origination fee, so the rate you’re quoted is the total cost of the loan on an annualized basis.
With a strong credit profile, you’ll likely qualify for a rate below the average — but if you have fair or poor credit, expect to pay more.
Shop Around for the Best Personal Loan Rates
Even if you receive an attractive offer from Prosper, it’s smart to shop around. Applying with multiple lenders — especially those allowing soft credit checks — is the best way to find the most affordable rate.
That’s why we built The Yukon Project’s loan marketplace. With one simple application, you can check rates from up to 40 lenders without harming your credit score. Instantly compare offers and pick the best personal loan for you.
Final Thoughts: Should You Borrow From Prosper?
A Prosper personal loan can be a good fit if you qualify for a low rate and don’t mind the origination fee. However, always read the fine print and shop around before making a decision.
Have you borrowed from Prosper before? Drop a comment and share your experience to help other readers! If you found this article helpful, explore more personal finance guides at The Yukon Project.
