Learn More About $40,000 Personal Loans From Prosper

1. What is Prosper?

Prosper claims to be the first peer-to-peer lending platform in the United States. Since 2005, the lender has helped over one million people get personal loans online.

2. What does peer-to-peer lending mean?

Peer-to-peer (P2P) lending is where multiple investors (your peers) put money together so people can get loans. While you can apply for a personal loan through Prosper’s website, you can also apply as an investor to get a return on your funds.

3. Why choose a P2P lender like Prosper over a bank, credit union, or traditional lender?

Since Prosper takes funds from so many different investors, it gives them more leeway when making loan approval decisions. In other words, while getting a loan through a credit union, bank, or traditional lender can be tough since they require higher credit scores, you may find less trouble with Prosper.

4. What are Prosper’s requirements?

The minimum credit score to get a personal loan through Prosper is 600. This lets borrowers with bad or fair credit get in the door where they might otherwise be rejected.

5. What if your credit score is below 600?

Unlike other lenders, Prosper lets you apply with a joint applicant. So, if your credit score is too low to qualify, you can use a joint applicant like a friend or family member with a better credit score to get approved. If approved, you will have to repay the loan on time. If not, the joint applicant will be responsible.

6. How much money can you get from a Prosper personal loan?

Prosper offers personal loans from $2,000 to $40,000. Not everyone will qualify for the maximum amount.

7. How long does it take to get the funds?

Prosper offers next-day funding. You could get a direct deposit to your bank account the next day if your loan application is approved.

8. How long do you have to repay the loan?

Prosper offers three and five-year loan terms. The longer your loan term, the smaller your monthly payment, but the higher the interest charges.

9. How much interest does Prosper charge?

Prosper’s loans have APRs in the 7.95 to 35.99 percent range. The higher your credit score, the lower your APR.

10. Does Prosper charge any fees?

Yes. Prosper charges an origination fee of 2.4-5 percent of the loan amount. There is also a fee for loan payments made by check. If you want to pay off your loan ahead of time, there is no prepayment penalty.

11. How can you apply for a Prosper P2P loan?

You can apply online by visiting Prosper’s website. A quick quiz will tell you what monthly payment and rate to expect without pulling your credit. If you like the estimate, you can formally apply for the loan, which will involve a hard credit inquiry that drops your score. As you repay the loan, you can rebuild your score to enjoy better credit and cheaper financing in the future.