Loan Reviews

Prosper Personal Loans Review 2020 – Great Offers for Great Credit Score and Serious Income!

EPF Last Update: September 23, 2020

Prosper in a nutshell

Prosper is one of the best of peer-to-peer lending marketplace, which connects good-credit borrowers with investors who can choose to fund their loans. Prosper’s personal loans are great for people who:

  • Have good to excellent credit scores. People with fair credit or no credit still can try, but there are better options for them. If your credit score is less than 640, Prosper is not a great option for you.
  • Have substantial annual income. The average for Prosper borrowers is about $89,000.
  • Want a personal loan from an experienced online lender.
Loan amounts$2,000 – $40,000
Typical APR7.95% – 35.99%
Min Credit Score640
Time to funding1 – 3 Days
Loan terms3 – 5 years
Origination fee2.4% – 5%
Debt-to-income ratio50%
Check rates

EPF Loan Shop Center


Are You looking for:

What You have to Know about Prosper Loans?


  • Origination fee: 2.4% – 5%
  • Later fee.
  • No application fees.
  • No pre-payment fees.
  • No check processing fees.
  • No returned check fees.
  • No annual fees.


  • Min Credit Score: 640
  • Debt-to-income ratio: 50%
  • Income requirement: Not specified, but the average for Prosper borrowers is about $89,000.
  • Credit history: Min 2 years

Best for

  • People with great credit score and serious income.

Other Facts about Prosper

  • Prosper offer unsecured loans.
  • Prosper offer fixed loans.
  • They have great customer support.
  • Type of credit check: Soft
  • Prosper is not so flexible because of its late fee.

The Application Process

  • Register and check your rate. There is no application fees and no obligations. Also no hard inquiry on your credit, that will lower it.
  • Check your terms select the offer that works best for you and finish your application.
  • Verify your info.
  • Receive your funds. You have to know that if you approve the offer, Prosper will do a hard inquiry on your credit.

Now Let’s Review Prosper in Details

Prosper is Peer to Peer (P2P) lending the way of the future? It might seem this way with borrowers looking for better terms than brick and mortar banks and investors looking for better returns. Online lending has exploded in the last decade and Prosper is known as the trail blazer of this industry. In fact, this platform was the first P2P lender in the US when it was created in 2006. P2P lending can be risky, but this platform connects good-credit borrowers with savvy investors. Let’s look at’s processes for borrowers and lenders below!

Prosper vs Other Top Companies

CompanyAmountCredit ScoreAPR
Prosper$2,000 – $40,0006407.95 – 35.99%
PersonalLoans$1,000 – $35,0005805.99% – 35.99%
Upgrade$1,000 – $35,0006007.99% – 35.97%

How Can Borrowers Benefit? could be a good match for borrowers who:

  • Have above average credit scores. Although the minimum score is 640, Prosper’s borrowers have an average score of 710.
  • Have a solid income. There is no income requirement, but average borrowers on the platform bring in $86,400. Luckily, most of these borrowers aren’t strangers to money management and have experience with successfully managing multiple debts.
  • Want to utilize an experienced lender. This lender was founded in San Francisco during 2006 and was the first online lender to be established in the US.
  • Like wealth management apps. Prosper has its own version of called, Prosper Daily, which allows borrowers to monitor payments and spending. Like, it offers free monthly credit scores.

Prosper at a Glance

Unlike other online lenders, doesn’t use its own money to create loans. The company conducts underwriting with applicants and charges a fee to connect investors with approved borrowers. Some lenders like the Lending club use this same process, while others use its own capital to produce loans.

After applying for a loan, this platform will assign you a grade by analyzing your past spending habits, credit data and ratios such as your debt to income ratio. You can see your grade which determines your interest rate along with origination fees. On the flip side, investors can see your stats and use them to determine if they should invest in your loan.

How are These Loans Different?

Unfortunately, doesn’t offer the same degree of flexibility of other online lenders. For example, you can’t change your payment schedule and will receive a late fee if you fail to make a payment. Other online lenders, such as, Lending Club, have more flexibility with loan terms and lower loan minimums. Also, it allows borrowers to file joint loan applications along with payment modification plans.

This online lender is a bit more rigid than other sites, but The Prosper Daily app is one of its main benefits. In fact, this app helps borrowers manage their spending in various ways. One main feature is subscription alerts, which tell you if you have old subscriptions, such as a magazine you don’t read, and when those prices are raised.

But What About Investors?

Before investing in this online platform, investors need to know there have been two versions of The first version was Prosper 1.0 which was in effect from 2006 to 2008 when underwriting standards were less stringent. For example, the minimum credit score was only 520, leading to negative returns. Fortunately, Prosper 2.0 was created in 2009 and is the current version of the site. Loan requirements became stricter with a minimum FICO score of 640 along with other standards like debt-income ratios. Thus, returns have significantly improved for investors and the following images shows the returns per loan grade. The safer grades like AA have lower returns while riskier grades like HR have higher returns.

Loan Grades and Prosper Scores

As shown above, this lender has 7 ratings called prosper rates which are AA, A, B, C, D, E and HR in order from safest to riskiest. Rates begin at 5.99% for a short term (3-5-year duration) AA loan up to approximately 32% for a high-risk HR loan. Prosper dedicates a page on its site for borrower FAQ called the borrower help page. It has a section called “What are loan interest rates” found under the Applying section.

Besides a loan grade, borrowers are ranked with a score which ranges from a minimum of 1 to a maximum of 11. This score has been developed internally based on the typical payment records of Prosper’s borrowers. In addition to using a loan grade, Prosper ranks borrowers with a Prosper score which range from 1-11. This is a score that they have developed internally based on the payment history of actual borrowers on their platform. Thus, this score and individual borrowers’ credit information determines the interest rate.

Investor Requirements and Minimums has specific standards that are required of all potential investors.

  • Age requirement: You must be at least 18, with a Social Security number in addition to an active checking or saving accounts.
  • You need to live in a state that permits this marketplace. Currently only, AK, CA, CO, CT, DE, DC, FL, GA, HI, ID, IL, LA, ME, MI, MN, MS, MO, MT, NV, NH, NY, OR, RI, SC, SD, UT, VT, VA, ,WA, WV, WI, and WY allows Prosper.
  • Other states like, AK, ID, MS, NV, NH, VA and WA have strict eligibility requirements like requiring at least a $70,000 annual gross income along with a net worth of $70,000. Also, residents can only invest 10% of their net worth in these loans.
  • Minimum Loan Investment: $25 per loan. It’s recommended to buy at least 100 different loans at 25 dollars than 10 loans for $250 each. Like all investing, P2P lending is no different and diversification is king. Per, every investor with at least 100 loans has seen a positive return since July 2009.

P2P has risen in popularity among borrowers and lenders. Online lending is defying traditional lending by letting others besides banks, take part of the action. Nothing in life is without risk, but’s system makes it easier for borrowers and lenders to mitigate risk. Prosper is a leader in this industry and click here to create an account for either lending or borrowing!

Additional Information BBB – A+

Company Address and Phone:

1-(866) 615-6319
Monday – Friday
8am – 9pm (ET)
5am – 6pm (PT)Saturday
9am – 5:30pm (ET)
6am – 2:30pm (PT)
1-(877) 646-5922
Monday – Friday
11am – 8pm (ET)
8am – 5pm (PT)


Send loan payment to:
Prosper Marketplace Inc.
P.O. Box 396081
San Francisco, CA 94139–6081

Office location:

Prosper Funding LLC
221 Main Street, Suite 300
San Francisco, CA 94105

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