About Lender
Prosper Funding LLC, based in San Francisco, California, is a financial services company that offers simple and smart tools for borrowing, saving and earning. With nearly 20 years of experience, Prosper has earned the trust of over 1 million customers by offering a range of financial products including personal loans from $2,000 to $50,000, credit cards with limits from $500 to over $3,000 and home equity options to access up to $500,000.
Designed to help its customers improve their financial lives, Prosper’s solutions support goals like consolidating debt, financing home improvements and covering medical bills. Prosper’s application process is secure and transparent, using 256-bit encryption to protect applicant information. Personal loan eligibility is based on the applicant’s information, investor commitments and meeting certain credit criteria. Home equity loans over $250,000 may require an in-home appraisal and title insurance. Prosper’s commitment to responsible lending has made it a trusted choice for those looking for financial solutions.
Key Features
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Multiple Loan Options. Prosper offers multiple loan options including personal loans from $2,000 to $50,000, credit cards with limits to $3,000+ and home equity options to access up to $500,000.
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Fast and Simple Loan Process. Prosper has a quick and easy loan application process with next-day funding for personal loans, showing the company’s efficiency in processing and approving loans.
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No Pre-payment Penalty. For personal loans, Prosper doesn’t charge a pre-payment penalty so borrowers can pay off their loans earlier than the term without extra cost.
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Secure. Prosper keeps its customers’ information secure by using 256-bit encryption during the loan application process.
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Investment Opportunities. Besides borrowing, Prosper offers investment opportunities where individuals can invest in personal loans with an average historical return of 5.6% and diversify their portfolio while helping others financially.
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Proven Track Record. Founded in 2005, Prosper has over 15 years of experience in the financial industry, serving over 1 million customers, which speaks to its credibility and expertise in offering financial solutions.
Pros and cons
Pros
Multiple Products. Prosper offers personal loans, credit cards and home equity loans to fit different financial needs.
Fast Funding. Personal loans funded next day after offer acceptance and verification.
No Prepayment Penalty. Borrowers can pay off personal loans early without penalty. Flexible loan management.
Investment Opportunities. Prosper allows individuals to invest in personal loans with an average historical return of 5.6%.
Cons
Eligibility. Personal loan and home equity product eligibility is based on investor commitment and applicant credit criteria which may limit access for some borrowers.
Interest Rate. Interest rates may vary based on applicant credit score which may result to higher interest rates for those with poor credit history.
Investment Risk. Investing in personal loans through Prosper has risks and can result to loss like any other investment.
Loan Amount. Personal loans are up to $50,000 and home equity products have their own limits which may not be enough for borrowers who need higher amount.
Home Equity Product Availability. Home equity products are not available in all states so borrowers in certain areas may not have options.
Charged Fees. Origination fee is 1% to 7.99%. Late fee is 5% of the monthly payment or $15 if it’s a greater sum.
Reliability
Long History. Prosper has been around since 2005 and has funded over $20 billion to more than one million borrowers.
Good Reputation. Platform has A+ rating with Better Business Bureau and customer reviews are positive.
Security. Prosper uses encryption and multi-factor authentication to secure user data and prevent unauthorized access.
How to Apply for a Prosper Loan?
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Visit website. Start by navigating to the Prosper website. On the homepage, choose the type of loan you're interested in, such as Prosper Loans, Home Equity, or Credit Card.
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Check Your Rate. For personal loans, click on the option to check your rate. This process is usually quick and involves filling out a form with some basic information. Checking your rate won't impact your credit score.
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Fill Out the Application Form. Provide all necessary details required in the application form. This includes personal information, financial details, and the purpose of the loan.
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Review Loan Offers. After submitting the initial information, review any loan offers that you may receive based on your eligibility.
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Select Your Loan. Choose the loan offer that best suits your needs. Pay attention to the loan amount, interest rate, term, and any other relevant details.
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Submit Documentation. Prosper may request additional documentation to verify the information you've provided. This could include proof of income, identity verification documents, or other financial statements.
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Wait for Approval. Once you've submitted all required documentation, wait for Prosper to review your application. Prosper will conduct a credit check as part of this process, which could affect your credit score.
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Review and Accept Loan Agreement. If approved, review the loan agreement carefully. Make sure you understand all the terms and conditions before accepting the loan.
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Receive Your Funds. After accepting the loan agreement, you'll receive the funds. Prosper offers next-day funding for personal loans, but the exact timing can depend on your bank’s processing times and whether all necessary verifications have been completed quickly.
Conditions and Requirements
Conditions
Loan Amount. Personal loans from $2,000 to $50,000. Credit card offers from $500 to over $3,000. Home equity loans up to $500,000.
APR Range. Interest rates vary from 8.99% to 35.99%.
Repayment Terms. Personal loans terms vary from 2 to 5 years
Requirements
Eligibility. Applicant must be of legal age (18 or above) to enter into a binding contract and must provide valid ID during application process.
U.S. Residency. Services are primarily for U.S. residents so applicant must provide proof of residency.
Credit Check. Prosper will perform a credit check during application process which is a hard inquiry and may affect your credit score upon final application. Borrowers who will accept a personal loan through Prosper must have a credit score of 640 or higher to qualify for a loan.
Documentation. Applicant may need to provide documents to verify identity, income, employment and other information during application process.
Investor Commitment. For personal loans, eligibility and loan amount depends on the commitment of funds by investors on the Prosper platform and other conditions.
Ways to Receive the Money
For personal loans, Prosper can fund next day after borrower accepts the loan offer and completes all verification steps, subject to final approval. This fast funding process allows borrowers to get the money they need fast, often the next business day. The funds are disbursed electronically and deposited directly to borrower’s bank account. Direct deposit makes the transfer of funds smooth and borrowers can use the loan for intended purpose without delay. Borrowers must make sure their bank account information is accurate and updated to avoid any issue with the fund transfer.
Products
Personal Loans. Prosper offers personal loans from $2,000 to $50,000. These loans can be used for debt consolidation, home improvement, medical expenses and more. Competitive rates, no pre-payment penalty and next day funding.
Credit Cards. Prosper offers credit cards with limits from $500 to over $3,000. Zero fraud liability and no security deposit required for users who want flexible credit.
Home Equity Loans and Lines of Credit (HELOCs). Borrowers can get up to $500,000 through Prosper’s home equity products. These products are for homeowners who want to tap the equity in their home for renovations, big purchases or debt consolidation. Low rates and apply in minutes.
Investment Opportunities. Prosper also offers investment opportunities through the platform. Individuals can invest in personal loans. Investors can earn returns by funding loans and help others achieve their financial goals. Prosper shows average historical return for investors. A great option for those who want to diversify their investment portfolio.
Other Personal Loans
Reasons for Loan Refusal
Loan applications can be declined for reasons common to most lending platforms including Prosper. These reasons include insufficient credit history, low credit score, high debt-to-income ratio, insufficient income or not meeting other underwriting criteria set by the lender. Prosper evaluates loan applications based on a combination of factors to assess the borrower’s ability to repay the loan. This thorough review ensures loans are offered to individuals who meet Prosper’s creditworthiness criteria, as per federal regulations and responsible lending practices. Borrowers are encouraged to check their credit reports and improve their financial profile where possible before reapplying to increase chances of approval in the future.
How to Repay a Prosper Loan?
To pay a Prosper loan, borrowers have different options depending on the type of loan they have. For Home Equity Lines of Credit (HELOCs), during the 10 year draw period, borrowers must make a minimum monthly payment of $100 or the total of accrued charges and other fees for the billing cycle, and these payments will not reduce the principal balance. Borrowers can still borrow more if more than the interest is paid. In the repayment phase, borrowers must make minimum monthly payments based on the APR, which will adjust if rates change, and the remaining balance due at the end of the term. For personal loans, repayment options are AutoPay, online payment via ACH, phone payment through customer service, or by mailing a check, money order or cashier’s check. Prosper does not accept payment via debit or credit cards, wire transfer, mobile payment, bitcoin, digital wallet or cash.
Loans like Prosper
OppLoans
OppLoans is a notable financial service provider that offers consumer loans varying from $500 to $4,000. They expedite the funding process to ensure that approved applicants receive the necessary funds promptly, which is advantageous for those dealing with immediate financial concerns. OppLoans offers adaptable repayment conditions, giving customers the choice between 9, 12, and 18-month loan terms. This adaptability allows borrowers to opt for a repayment plan that matches their financial ability, ensuring a seamless and manageable loan journey.
Rise Credit
RISE Credit is a reliable online lender that provides loans up to $5,000. They have a streamlined application procedure, allowing borrowers to have funds transferred to their accounts as early as the next business day. They present the flexibility of choosing a payment schedule that fits with the financial preferences of the customers, although some state-based restrictions might apply. A notable feature of RISE Credit is its 5-Day Risk-Free Guarantee, which permits borrowers to revoke their loan and return the principal with zero fees or interest within the given period. Additionally, RISE Credit grants customers complimentary access to their credit score and credit monitoring alerts through Credit Score Plus, offering valuable financial insight.
OneMain Financial
OneMain Financial stands as a distinguished and enduring lender, offering personal loans that range between $1,500 to $20,000. Boasting a century’s worth of experience in the financial sector, they have garnered the trust of a vast customer base. Their loan terms include fixed rates and fixed payments, offering a predictable and manageable repayment scenario to borrowers. OneMain Financial emphasizes personalized service, ensuring that the distinct needs of each customer are addressed. With a widespread network of approximately 1,400 branches, they provide easy access and convenience for individuals in search of financial aid.
Universal Credit
Universal Credit requires applicants to have a minimum credit score of 560, thus excluding those with no credit history. It is appealing for its credit-enhancement features, making it suitable for individuals with fair or poor credit looking to better their scores. Providing larger loan amounts than Oportun and next-day funding upon approval, it emerges as a solid choice for significant, urgent financial needs. Universal Credit extends its loan services across all 50 states and Washington, D.C., offering a wide geographical coverage.
Editorial Opinion
Important
How to Choose a Lender
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Make sure to confirm whether the lender is licensed to operate in your state. You can verify this information with your state regulator or attorney general.
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Check if the lender is a member of a reputable association, such as the Community Financial Services Association of America. Membership in such organizations may provide an extra level of reliability.
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Carefully review all the terms and conditions of your payday loan contract.
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Thoroughly examine the interest rates on payday loans and ensure that your contract includes a detailed breakdown of the total cost of the loan.
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Take advantage of your right of rescission. Usually, you can rescind the loan within three days after signing the agreement. Alternatively, there is typically a "cooling-off" period, which allows you several days to thoroughly review the contract before making an informed decision to enter into a consumer loan agreement based on the terms specified by the lender.
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Choosing a payday lender is a significant decision that demands careful consideration and a good understanding of how such organizations operate.
Additional Resources
- Full Prosper Account Review
- How to Apply for a Prosper Loan
- How to Repay a Prosper Loan
- Prosper Mobile App
- Prosper Customer Reviews
- All Prosper Coupons and Promo for January 2025
- Prosper Loans of January 2025
