What is Prosper?
Founded in 2005, Prosper is an online peer-to-peer lending marketplace offering personal loans funded by individuals and investors. Its loan amounts range from $2,000 to $50,000 with repayment terms ranging from three to five years. Loan funds can be used for almost any purpose, including debt consolidation, home improvement or medical expenses. Prosper also offers business loans, student loans and a credit card.
What consumers say about Prosper
ConsumerAffairs reviewers who were happy with Prosper praised its loan process, customer service and quick funding.
James, a reviewer from Illinois, said: “Loans are funded by individual investors, as opposed to banks or other credit companies. [...] I found it to be a very simple process of filling out a very short form on a website[.] [...] If all looks good [to Prosper] the loan is put out to the investors and the investors decide whether or not they want to invest enough to fund your loan. It only took about [half] of a day and I received the communication from Prosper that my loan had been funded. A couple days later the loan proceeds were transferred directly to my checking account.”
Negative customer reviews focused on issues with Prosper’s customer service, high fees and rates or changing terms after becoming a customer. However, it’s important to note that many of its recent negative reviews are about its credit card, not its personal loans.
Joann, a reviewer from North Carolina, said: “I'm so disappointed with Prosper [loans]. I was taken through so [many] pre-loan steps that didn't benefit me at all. After so many attempts at securing a loan, it ended up that my bank [had] charged me $457 for a returned check deposited by Prosper signed in my name to my bank account by Prosper then [withdrawn] by Prosper. My online account has now been frozen for six months.”
Is Prosper a scam?
Prosper is not a scam. It is a peer-to-peer lending platform that connects borrowers to investors. It has no current enforcement actions by the Consumer Finance Protection Bureau (CFPB). The company did settle a class action lawsuit in 2013, and it settled with the Securities and Exchange Commission (SEC) in 2019 for miscalculating and overstating net returns for investors.
As with all lenders, make sure to research a company and review all loan terms and conditions before taking out a loan. If you receive a loan offer from a company or investor that you didn’t initiate, it’s likely it’s a scam.
» MORE: Personal loan scams: what they are and how to protect yourself
Prosper information
Here’s more information about Prosper, including its contact information and availability.
| Year founded | 2005 |
|---|---|
| Headquarters address | 221 Main Street, Suite 300, San Francisco, CA 94105 |
| Website | https://www.prosper.com/ |
| Phone number(s) | 866-615-6319 |
| Email address | support@prosper.com |
| State availability | 47 states (not available in Iowa, North Dakota or West Virginia) |
» MORE: Best personal loan companies
FAQ
What is the minimum credit score for a Prosper loan?
Prosper states on its website that if you have a credit score under 600, you may not qualify for a loan through its site. It recommends getting prequalified online before applying or applying with a co-applicant.
How long does a Prosper loan take?
A Prosper loan can be funded in as little as one business day. However, the loan verification process can take up to five business days.
Does Prosper charge any fees?
Prosper loans may be subject to origination fees, check payment fees, late fees or insufficient funds fees. It doesn’t charge any prepayment fees.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- U.S. Securities and Exchange Commission, “Silicon Valley Company Settles Fraud Charge for Misstating Returns to Investors.” Accessed April 16, 2026.
