Avant vs. Prosper

Types of loans

Avant specializes in personal loans that fill the gap between expensive payday lending and traditional bank requirements. The company targets middle-income borrowers who need quick access to funds for debt consolidation, home improvements, medical bills or major life events. It also offers a credit card designed to help customers build stronger credit histories.

Unlike Avant, Prosper is a peer-to-peer platform. Rather than lending its own money, it connects borrowers with individual investors who fund the loans. In addition to personal loans, Prosper offers home equity loans and home equity lines of credit (HELOCs), giving homeowners borrowing options backed by their property value.

How Avant and Prosper’s loans compare

Here are the key differences between Avant and Prosper loans:

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Rates and fees

Avant and Prosper have comparable annual percentage rate (APR) ranges, though Prosper starts a bit lower at 8.99% compared to Avant’s 9.95%. Maximum rates reach 35.99% for both lenders.

Origination fees are nearly identical between the lenders. Avant charges an “administration fee up to 9.99%,” while Prosper’s origination fee ranges from 1% to 9.99%. Both deduct these fees up front, which means you’ll receive less than the full loan amount. For example, an $8,000 loan with a 4.25% fee would leave you with $7,660 in funds.

Late payment policies vary in timing and structure between the two platforms. Avant charges a flat $25 late fee after 10 days, plus $15 for returned payments. Prosper provides a 15-day grace period before late fees apply, after which you pay either $15 or 5% of your missed payment amount (whichever is more). It also charges $15 for failed payments, such as those caused by insufficient funds.

How Avant and Prosper’s fees compare

Here’s a glance at Avant and Prosper’s fees side-by-side:

Loan amounts and terms

Both lenders offer minimum loan amounts of $2,000. But Prosper’s $50,000 maximum gives you much more borrowing power than Avant’s $35,000 cap. If you're consolidating $40,000 in credit card debt or funding a major home renovation, Prosper can cover the full amount, while Avant would fall $5,000 short.

However, Prosper's higher loan limits come with stricter credit requirements. This creates a catch-22 where borrowers who need larger amounts most — those consolidating significant debt — may be least likely to qualify for them.

Prosper lets you apply with a co-borrower to boost your chances of approval. This can unlock better rates or higher amounts you couldn’t access alone. Prosper also lets you carry two active loans at once for added flexibility.

Avant funds loans within one business day as a direct lender. Prosper takes longer, since investors must review and commit to funding, and the process can stretch up to two weeks.

How Avant and Prosper’s loan terms compare

Here’s how the loan amounts and terms of each lender stack up:

Qualifications and eligibility

Avant and Prosper target distinct credit profiles, which affect who can qualify for their personal loans. Avant welcomes borrowers with scores as low as 550, while Prosper typically requires 600 to 640 for approval.

Beyond credit scores, each lender assesses your finances through debt-to-income (DTI) ratios and income verification. Avant accepts DTIs around 35%, while Prosper caps DTIs at 50% excluding mortgage payments. Neither specifies income requirements, but both consider proof of reliable income alongside other factors when making approval decisions.

Prosper has additional eligibility criteria beyond credit scores and income. You can't have filed for bankruptcy in the past year, have more than five credit inquiries in the last 12 months or live in Iowa or West Virginia.

How Avant and Prosper’s eligibility requirements compare

The eligibility comparison below highlights each lender’s approach to requirements and eligibility:

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Loan process and customer experience

Avant keeps things simple — you apply online, get approved (or not) and receive funds the next business day if everything checks out. Prosper, on the other hand, connects you with investors who review your loan request and decide whether to fund it.

Both Avant and Prosper get mixed reviews from borrowers. Some Avant users appreciate the reliability and speed. Others face frustrating delays and poor communication.

For instance, Veronica from California, who awarded Avant five stars, said, “When I first signed up for Avant, I was a little leery, but [it has been] professional and secure. If I had any questions or issues, it was handled efficiently. I'm definitely staying with Avant because they notify me if there's fraudulent activity suspected.”

However, B.P. from Colorado wasn’t happy with Avant’s process. “It took about 72 hours for an initial notification, which was followed by three separate phone calls, each asking for a new piece of information,” B.P. said. “The very next day, I received notification that my application had 'expired,' meaning they took so long to review that the process timed out.”

On ConsumerAffairs, Prosper customers highlight how easy it was to sign up online. “It only took about [half] a day, and I received the communication from Prosper that my loan had been funded,” said James from Illinois. “A couple [of] days later, the loan proceeds were transferred to my checking account. I didn’t have to talk to anyone. All communication was done through email. They couldn’t make it any easier.”

But Har from Arizona experienced several errors and was charged interest before receiving funds. “I asked, 'Am I being charged interest while waiting for this to go through my account?' and they said yes. So I said, 'Get a supervisor on the phone.' I haven't received any money, and I'm not paying [this interest],” said Har.