Prosper is an online peer-to-peer platform that lends personal loans to fair and good credit borrowers.
Reviews on Prosper Loans – About Prosper Loans
Prosper is a peer-to-peer lending platform. It joins borrowers looking for personal loans with investors, and the lending qualifications are not as strict as some traditional lenders. Prosper is a good option for borrowers with fair credit, and other lenders may offer fewer fees and lower APRs ( Annual Percentage Rates).
What Are Types of Personal Loans Offered by Prosper
Prosper offers different types of personal loans that can be used for any aim, which includes Loans:
- For medical expenses
- For your home improvement
- For Debt consolidation
But, loan funds cannot be used to pay for post-secondary education.
Prosper’s credit score requirements may be lower than other lenders. Therefore, borrowers must meet another eligibility standard in other to qualify for the loan. You must at least have a credit score of 640, a Dept to in-come (DTI)Ratio that’s 50% or lesser than, and an annual income that’s greater than $0, borrowers are expected to meet these requirements:
- There must be no bankruptcies filed within the last year
- Must have a minimum of at least three accounts listed on your credit reports
- Must have nothing lesser than five hard credit inquiries within the last six months
Pros and Cons of Prosper Loans
Pros and cons are also known as Advantages and Disadvantages. Listed below are the Pros and Cons of Prosper Loans.
- Their minimum interest rate is low
- They make funding available quickly
- They allow joint applications, two different people can take it loan together
- The option to change your payment date.
- They offer a wide range of loan amounts.
- They don’t rate discounts for autopay.
- Their Funding time could be longer than other lenders.
- They Charge late fees and origination.
- The borrowers can choose from only two repayment term options
- Prosper Loans is Only available in 19 states
- Their maximum annual percentage rate (APR) is high.
Ways in Which Prosper Stands Out
Prosper stands out in different forms like;
The Joint loan option: Prosper’s platform allows two borrowers to apply together as joint applicants. Plus a co-borrower with stronger credentials can improve your chances of getting a loan or a lower annual percentage rate.
Wide range of loan amounts: Prosper makes provides for borrowers to access the loan amounts from $2,000 to $40,000, and it allows borrowers to be able to cover large and small expenses, including debt consolidation and pricey home improvement projects.
Home Equity of credit: Due to the rate of unsecured personal loans, Prosper has offered access to a home equity line of credit for borrowers in Alabama, Arizona, California, Colorado, Florida, Illinois, Nebraska, New Hampshire, New Mexico, Oklahoma, Oregon, Pennsylvania, and Texas. Applicants for the loans can be able to see specific offers without affecting their credit score, and they may receive funding within weeks.
With a Home Equity Line of Credits (HELOC), you borrow above the available equity in your home and use the house as collateral. The HELOC has lower APRs and longer-term repayment than personal loans, making monthly payments more affordable.
Frequently Asked Questions (FAQS)
Below are answers to questions people frequently asked;
How to qualify for a Prosper loan
- The Applicant must be qualified in the following or instructions listed below
- The Applicant must at least three open accounts on the credit report.
- Must have a minimum credit score of 600 and borrower average is 722.
- Must be 18 years old and above
- Must have 2 years of Minimum credit history.
- Must not have a filled case of bankruptcies within the past few years.
- Must provide Social Security number and a U.S. bank account.
The maximum debt to income ratio should be 50% (except for mortgage) plus a borrower’s average is 17.67%, including monthly housing payments.
How Long Does it take to Approve a Prosper Loan?
According to Prosper, If all of your application documentation is completed on time, you can receive your loan funds as soon as one business day after the application is approved. However, funding takes about three days after approval for most customers. The average amount of time from application to funding is between three and five days.
What is the Minimum Credit Score for a Prosper Loan?
“Prosper has a minimum credit score requirement of 600, which is in the fair-credit range. The average score is 722.”Says prosper
Prosper’s platform enables borrowers to access a wide range of loan amounts, Note that funding can take a few days before you can receive it.
Also know that Prosper relies on investors to fund borrowers’ loans, and there’s no assurance that you will receive funds quickly. But If you need funds quickly, Prosper might not be the best option for you.