Prosper Loans Review: Is it Legit?

In this Prosper loans review (for borrowers), we'll show you how you can use a Prosper personal loan for just about anything you would want.

Prosper Loans is a leading online lender that offers personal loans to borrowers with competitive rates. Prosper is a peer-to-peer lender, meaning your loan typically will come from individual investors.

Prosper offers unsecured personal loans that can be used for almost any purpose, including debt consolidation, a wedding, home improvements, or whatever you need the money for.

Prosper loans require a fixed monthly payment over three or five years.

Just to begin our Prosper loans review, if you are hoping for getting cash on the same day, Prosper is not the lender for you. Because your loan is paid by several investors instead of one, you will not receive your money immediately. If they think you're a good credit risk, your loan could be funded very quickly. If not, your loan may not get funded at all.

Prosper loans at a glance

  • You get get a personal loan from $2,000 to $40,000
  • Generally, you'll need a good credit score of over 640
  • Estimated APR is 6.95-35.99%
  • It's a trustworthy way to get funding
  • You can save thousands with a fixed low rate
  • You can use it to consolidate credit card or other debt into a single personal loan
  • Get started at

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» MORE: Compare online loans and pre-qualify

Full review

A personal loan from Prosper offers a few different unique benefits compared to other lenders. To qualify, Prosper uses its in-house rating system to score your credit profile. This profile is shown to investors who decide if they want to fund your loan. If your loan isn't funded, then your application expires.

Interest Rates:6.95-35.99%
Loan Amounts: $2K to $40K
Loan Terms:3 -5 years
RequirementsFICO score of 640 or above
DTI ratio below 50%
No bankruptcies (in last year)
Fewer than seven credit bureau inquiries in the last 6 months
Minimum of 3 open trades on your credit report
Good ForPeople with less than established credit
Worst ForPeople who need the funds right away
Better Business Bureau RatingA+
In Business Since2005
Standout FeaturesFixed-rate loansBorrow up to $40,000
No prepayment fees
Checking rates doesn’t affect credit score

How the process works

Consolidating debt? Paying for a large expense like home improvement or a special occasion? Prosper has you covered. Here's how the process would work:

1. Get a low rate

You apply first and you'll get a loan with a low, fixed-rate that never goes up. Check your rate online instantly here.

2. Pay at your own pace

Pay off your loan with fixed 3 or 5-year terms, and a budget-friendly, single monthly payment.

3. Save money with Prosper loans

Save money with no pre-payment penalties.

Prosper features

Available for those who have insufficient credit: Prosper is a good choice for those who have been denied by banks and people who can not get a reasonable interest. It is one of the best bad credit loans. Prosper offers loans to people with a FICO score of only 640. Although high-risk borrowers have to pay higher interest rates, they are certainly cheaper than what you could get with a lender.

Fixed-rate loans: All of Prosper loans are delivered with a fixed interest rate so that in the long term you do not have to worry about an increase.

Borrowing up to $ 35,000: With Prosper, you can borrow between $ 2000 and $ 35,000. Most personal lenders do not allow you to borrow more than $ 25,000. Prosper is the right choice if you need to borrow more money.

Fast online application: by answering a few basic questions about yourself and your finances, you receive an estimate of your interest rate.

Limited loan conditions: Prosper requires that you choose a term of three or five years. While this should be good for most people, most lenders give their borrowers more flexibility when repaying their loans.

No Early Redemption Fee: If you decide to repay your loan before the end of the term, no extra costs will be charged to compensate for lost interest.

Earn money by investing: If you have money, you can earn some by paying part of the loans of other people. When they repay the loan, you receive the money that you have invested plus interest. The amount you earn depends on the interest rates of the loans to which you have contributed.

Mobile money management apps: Prosper mobile apps for iOS and Android devices help you track your spending and credit over time. Register all your purchases to see how you spend your money and look for chances to save. You can add protection against identity theft for an extra charge.

How you get your funds

The first step to check your first. You visit the Prosper official site and select your loan amount, answer a few questions and get your lowest eligible rates instantly. Then you'll choose your loan and choose the offer with the terms that work best for you. Next, if approved, your money goes straight to your bank account via direct deposit.

Is Prosper legit?

It can be considered a smart choice to think about getting a personal loan from Prosper, as they offer you the opportunity to get money that can really help you out of a bind.

This bind will come and go, but the credit score increase that you will get will only provide you with a stronger financial platform from which to work with. When you make payments to Prosper, that meet the timeframe that was laid out you will be establishing credit.

This credit will serve as a strong point when you need to apply for other various forms of credit, such as store line credit or a future loan. Once you have paid back in full the money you borrowed from the prosper, they will report to the three major credit agencies and inform them on your payment history with them.

This will go on record and will be shared with other various lenders and credit companies. Good reports go along way when it is in regards to money borrowed.


  • Unsecured personal loans do not require any guarantee
  • Increase your credit score
  • Get the money you need quickly
  • Good credit can give you a lower interest rate
  • Most are fixed-rate loans, which makes budgeting easier


  • Prosper charges start-up costs that are equal to two to five percent of your borrowed amount.
  • Bad credit may result in the rejection of your application.
  • Approved borrowers with subprime credit could receive higher interest rates
  • Many come with start-up costs or borrowing
  • You may not get your money right away, so it's important to remain patient. If you wanted to compare other quicker personal loan options, check here.

Apply on Prosper

Prosper is a good option for those who want to reduce their monthly payments and want to repay their loans over a longer period. Times are fixed at 36 or 60 months – and if your financial situation improves and you can pay faster, no penalty is imposed.

Prosper is the right choice if you need a loan, but are not eligible for conventional financing. Interest rates are reasonable compared to most credit cards and there are no prepayment costs.



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🏆 Our #1 Checking Accounts Choice for 2024
Primary Rating:
Chase Total Checking® Account

✓ Earn up to $300 when you open a new Chase Total Checking® account and complete qualifying activities

✓ Manage your accounts, deposit checks, transfer funds, plan a budget and more - all from your device

✓ Over 4,700 branches, the largest branch network in the U.S. plus access to more than 15,000 ATMs

Prosper is a peer-to-peer lender with rates and fees that compare to other loan lenders for good-credit borrowers.Prosper Loans Review: Is it Legit?