Taking out a personal loan to pay off high-interest credit card balances or other debt has become a popular strategy that Prosper has helped many borrowers pursue.
Prosper has been around since 2005, and claims to be the first peer-to-peer lender, matching people seeking personal loans to others who are willing to fund them.
Here’s an overview of what you need to know about taking out a personal loan from Prosper.
Prosper personal loans overview
If you’re paying off credit cards with high interest rates, facing an unexpected bill, or are thinking about making a big-ticket purchase, a personal loan can be an affordable source of funding. Prosper offers personal loans from $2,000 to $40,000 with fixed interest rates and repayment terms of 3 or 5 years.
While many of its customers take out loans for debt consolidation, Prosper also markets its loans as a source of funding for home improvements, car purchases, and weddings — whatever use you see fit. When your loan is funded, the money goes straight to your bank account.
If you decide to take out a personal loan with Prosper, here’s what you should know:
|Types of rates (APR)||Fixed|
|Loan size||$2,000 to $35,000|
|Loan terms||3 and 5 years|
|Loan use||Debt consolidation, home improvement, vehicles, small business, new baby expenses and other uses|
|Key benefits||- All loans through prosper are unsecured (no collateral required)
- Loan review process usually completed in 7 business days or less
|Residency||U.S. residents with a bank account and Social Security number|
|Loan originator||Prosper Loan|
How to take out a personal loan with Prosper
When you apply for a loan from Prosper, you’ll undergo a loan review process to verify the information you’ve provided and evaluate your creditworthiness. That process can take up to seven days. Once the underwriting and verification process is complete, investors have up to 14 days to fund your loan.
Depending on how eager you are to obtain your loan, Prosper can be a good fit for many borrowers. Keep in mind that every lender uses its own methods to evaluate borrowers, so requesting rates from several lenders is a good way to find a loan that’s right for you.
You can use Credible to fill out a single form in 2 minutes and request prequalified rates from multiple lenders, including Prosper. Credible’s integrations with lenders and credit bureaus mean eligible borrowers get to see prequalified rates without affecting their credit score.
The company above is one of Credible’s approved partner lenders. Because they compete for your business through Credible, you can request prequalified rates from them by filling out a single form. Then, you can compare your available options side-by-side. Requesting prequalified rates is free and doesn’t affect your credit score. Credible receives compensation if you close a loan with one of our partner lenders. The rates you receive and the fees you pay (if any) are not impacted by this compensation.