Prosper Loan Reviews

Prosper is proud to be America's first peer-to-peer lending marketplace. They are also a subsidiary of Prosper Marketplace Inc. and have over two million members with over $5 billion dollars in loans funded.

They offer unsecured personal loans, this means you don't have to put up collateral at the time of application. What makes them unique is they use peer-to-peer lending, where individuals and private companies can fund your loan. Due to this, you might be able to receive a better rate and borrow more than you would with traditional lenders.

Prosper allows you to use your loan funds for many reasons. This can include consolidating debt, making home improvements, financing a newer vehicle or using the money for business purposes. With competitive rates and an easy application process, it makes Prosper a great option to consider.

Prosper Loan Basics

With Prosper, your loan will be dependent upon a variety of factors including your credit score. To qualify for a loan, you will need a strong FICO credit score. This means if you don't have a high enough score, it is best to work on improving it to make you a better candidate in the future.

The rates and repayment terms for a Prosper loan depends on the rating they assign you. Prosper assigns ratings from AA to HR. AA is for members with the highest credit scores, as they will qualify for the best APR rates. Whereas first-time borrowers will be on the opposite end of the spectrum and may only qualify for a loan with much higher APR's. Even at the highest rate, Prosper is better than other lenders like NetCredit, who charge up to 150% APR for their loans.

Your credit rating, amount borrowed, and purpose for the loan will also determine how long you have to repay it. The maximum repayment term is 60 months, but some loans - especially those with higher interest rates – will have a lower repayment term. Although this will increase your monthly payment, you will have a lower total loan cost, since your repayment term is shorter.

Application Process for Prosper

To see if you qualify, you'll need to visit Prosper's website and fill out the short application form. It should take only a few minutes to supply the information needed. Once you submit the application, you find out instantly if you qualify for a loan. If you do, you move on to your loan listing. This is like a classified ad in that you are telling prospective investors why you need a loan. After you complete the loan listing, you wait until investors fully fund your loan. When they do, you receive the loan funds via direct deposit into your bank account.

Prosper makes repaying the loan simple. You can have your monthly payments deducted from the same bank account you used for funding.

Fees Associated with Using Prosper

Prosper does assess a closing fee at the time of the funding. What this means is they will deduct a percentage of your loan's balance to pay for the fee and then deposit the rest to you. The percentage deducted depends on several factors including your Prosper rating and the repayment term of the loan. To illustrate, if you have an A rating and have a repayment term of five years, your closing fee would be four percent. If you borrow $5,000, your fee would be $200, which Prosper would deduct before depositing the remaining balance of $4800 into your account. While this might seem expensive on the surface, the lower interest rates they offer will offset this initial cost over the life of the loan.

Qualification Requirements

Prosper is similar to other lenders in that they will have requirements you need to meet to receive funding; these include the following rules:

  • One, you must live in a state Prosper serves. Currently, residents of Iowa, Maine, and North Dakota will not qualify for a loan.
  • You must also have a minimum credit score of 640.
  • You need to have a valid bank account and a social security number to qualify.
  • Lastly, you will need to supply documents that support the information provided in your application. Often times this will include a copy of your pay stub, bank statement and a picture of a valid government-issued ID such as your driver's license. Keep in mind that as you supply these items, your verification stage increases, giving investors more incentive to invest in your loan.

Benefits of Using Prosper

Since Prosper has such competitive interest rates, often times you will discover them to be a better alternative to traditional lenders. This makes Prosper a great place to turn to if you have debt with high-interest rates and want to pay if off quicker. Along with great rates, their easy application process and great customer service make Prosper a smart lending choice.

Customer Service with Prosper

Prosper takes pride in providing exceptional customer service. They earned an A+ rating with the Better Business Bureau in part due to the service they give their customers. Additionally, Prosper offers phone and email options to contact them. They have flexible hours Monday through Saturday where you can reach them to have any questions addressed.

Prosper's Learning Resources

Prosper doesn't have a personal finance blog, but they do an excellent job on their website explaining how their loans can benefit you. Their article on debt consolidation shows how a low rate loan with Prosper can help you pay off your high-interest credit cards quicker and save money. It's practical advice like this that makes them a good resource to use to see if their products are right for you.

Things to Consider

Although Prosper has stricter credit criteria than other online lenders, their interest rates are competitive, making them a great option to consider. Since you can use the loans for a wide variety of purposes, they can be an inexpensive alternative to using traditional means to obtain financing.

Prosper Loan Review Recap

Prosper's peer-to-peer process is great for borrowers who qualify and offers great rates and fewer fees than a normal bank loan.

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Prosper Reviews

Average Customer Rating

19 User Reviews

User Rating Distribution

5 Stars 5
4 Stars 6
3 Stars 4
2 Stars 2
1 Star 2
Not Recommended bad bad

The employee does not do their job correctly, and wasting customer's time.

We were trying to get a loan, and we were approved with good rate. We received an email from Prosper to submit the required documents, and we submitted everything they asked for within the next day. After three days, we received a phone call before noon from an associate, but I couldn't answer the phone because I was working that is why my husband answered the phone. He told her that I couldn't speak at this moment, and she can call back after four o'clock. The associate gave him the extension, 5600, for which we would use to call back. We keep calling this extension, but no one answers. The customer service transferred us to this extension, but still no one answered. We keep telling them to call at the time that we are available, and we keep talking to customer service and they leave a message for their supervisor to call us after four o'clock Texas time. Today the customer service told us the their supervisor will call us back in a minute, but we have been waiting and nothing happened. But they just keep calling us at work and we can't answer the call. Today they sent us a note saying that the loan has been cancelled because we have not contacted them, even though we try everyday calling but no one answered. They are wasting our time, and we have sent them very sensitive information about us.

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Recommended Fast approval and processing time Interest rates are higher then other companies

Thanks to Prosper I have managed to consolidate my debts, and although the interest rates are a little higher then other companies, it has helped me and has also improved my credit rating.

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Recommended Customer service team Interest rate too high

I was looking to apply for a consolidation loan after my friend recommended Prosper, but the rate they offered me was much higher then my friends loan, so I decided to go elsewhere. The customer service reps are very helpful and knowledgable though.

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Recommended Helps improve credit rating None

A great system and offers low interest rates, good customer service and helps improve your credit rating!

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Recommended The fastest processing time! No cons

I signed up on a Wednesday afternoon and the money was in my back account by Friday! Super easy and a friendly customer service team.

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Recommended Fast loan applications Website and information not very clear

First impressions of Prosper were not good, after looking at their website, the information is poor and not very clear. luckily they have good knowledgable staff when you call them. Thanks to them I signed up for a small loan to help with some small urgent home improvements.

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Recommended Simple application process None

It only took 7 days from start to finish for the money to be in my account. The most simple loan application process and you are kept up to date the through the whole process.

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Recommended Helpful customer service Website

The interest rate is almost as high as one of the credit cards I paid off, but everything is now in one easy payment. The worst thing about prosper is their website, so don't let that put you off, make sure you call as their staff are really helpful and can answer any questions you have.

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Recommended Speedy application High interest rates

My credit rating is not the best, which is why I guess the interest rate i was offered was so high. But I've still managed to consolidate my debt into one payment thanks to prosper.

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Not Recommended Friendly staff Payment system

Signing up for the loan is pretty quick and easy, but the payment system lets them down completely. If you make an online payment the customer service reps cannot see it and if you need any help with it they have no idea.

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Recommended Loan application is easy Payment system is always broken

The whole process was really straight forward and the customer service team could not do enough to help. However since having the loan there have constantly be issues with their payment system, and it's always a glitch in their system, my payments are not showing up or not going through even though they have come out of my bank account. If it wasn't for that I would have given Prosper top marks.

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Not Recommended None Unhelpful and high interest rates

Absolutely pointless, avoid this company! I got a letter from Prosper to say I had been pre-approved for a loan and called them to find out some more details and they ran through some details with me and then told me my application was denied! What a waste of time!

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Recommended Money paid into account in days None

I recommend Prosper for a debt consolidation loan, money was paid into my account within a couple of days and the staff are really helpful.

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Not Recommended None Ridiculous interest rates

Went to apply for a loan and they were quoting me stupidly high interest rates, I would have been much worse off. Avoid!!!!!!!!!!

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Recommended Good APR rates Ask for too much paperwork make sign up complicated

Prosper were my first choice when I was looking to apply for a loan last year, but when I called to apply they were asking for a lot of unusual paperwork and also much mor then any other creditor would ask for when applying for a credit card or loan. It seemed like such a hassle I took a loan out with another company.

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Recommended Customer Services and quick application No cons

Having seen an advert for Prosper and their low APR I thought it might be too good to be true, but when I called up and spoke to a helpful representative they answered all my questions and the application was easy and I was accepted within minutes.

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Recommended Quick process and money paid in quickly None

I had a few credit cards I wanted to consolidate and was worried about my credit score, but I applied for a loan with Prosper and was accpeted within minutes, for more then I needed! The money was in my bank withina couple of days and I have now nearly paid off all my debt thanks to Prosper.

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Recommended Quick & Easy application process Interest rates can be high

The best loan I have ever applied for. The application process was simple and quick and the money was paid into my bank within 3 days, which was really helpful. Althought the interest rates can be quite high, it is still cheaper then the interest rates on my credit cards, which I was able to consolodate. AS long as you supply all the documentation they need the process and application will be easy with no problems. Would recommend to friends and family.

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Recommended Quick and easy application Unhelpful Customer Support

I was so pleased with Prosper when I first took out my loan with them a few months ago. The application was straight forward and quick and the money was in my bank account within a few days. However the after service is terrible. I have called the customer support team 5 or 6times now and each time they are as unhelp as before. The reps are polite enough but they just can't do anything to help when there is a problem. The most common issue if it's to do with payment is that their system has a glitch. Twice I have had to be reimbursed be a late payment fee, when a payment was paid on time, which is the same time every month!

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