Is Prosper legit?

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Prosper is a legitimate online lender that offers personal loans with competitive rates and minimal fees.  Although the loan verification process can take up to five days, Prosper offers flexible repayment terms and does not require collateral for their loans.

  • 772 Reviews analyzed
  • 3/2/23 Verified not a scam

What is Prosper?

Founded in 2005, Prosper is the first online peer-to-peer lending marketplace offering personal loans funded by individuals and investors. Loans amounts range from $2,000 - $40,000 with repayment terms from three to five years. Funds can be used for almost any purpose including debt consolidation and home improvement. Green energy and home equity loans are also available.

What consumers say about Prosper

ConsumerAffairs praised the loan process, customer service and how quickly loans are funded. For example, James from Itasca, IL said this about the loan experience: “I found it to be a very simple process of filling out a very short form on a website, including how much money I wanted to borrow and how many months/years I wanted to pay it back. Once you submit the form, it somehow looks at your credit "picture" without actually pulling a credit report, and therefore not leaving an inquiry on your credit report.”

The process also received praise from another ConsumerAffairs reader, Carlitha of Denver, CO, who said that “It was a quick and easy process. Funds were available within 5 business days of my application.”

About the customer service, Misty of Cordele, GA said, “Great customer service. Excellent friendly staff. Very professional, start to finish. You are treated with the utmost respect makes you feel like one of their family members.”

Note that there were some readers who were concerned about the number of hard pulls on their credit related to their Prosper loan applications.

» MORE: Verified Prosper reviews

Is Prosper a scam?

Prosper is a peer-to-peer lending platform that connects borrowers to investors. It is highly rated by its users and has no current enforcement actions by the Consumer Finance Protection Bureau (the company did have 20 complaints filed against it in 2022). The company did settle a class action lawsuit in 2013 and was sued in 2022 for predatory lending practices.

However, as of March 2023, it is not a known scam. As with all lenders, make sure to read and review all loan terms and conditions before signing. If you receive an offer from a company or investor that you do not know, do your due diligence to ensure there is no impropriety.

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