Is Prosper legit?
Partner Disclosures
Terms presented, including APR and monthly payment amount, are estimated and created based on information entered by you and through analysis of historical data on loans through Prosper. Your eligibility for a loan and actual terms depend on the information you provide in your application, and other variables including, but not limited to, your credit score, Prosper Rating, loan amount, loan term, employment and income details, credit usage and history. Eligibility for personal loans up to $50,000 depends on a number of factors, including (but not limited to) your financial history, credit score, monthly income, and monthly expenses. Eligibility for personal loans is not guaranteed, and requires sufficient investor commitments to fund. Personal loans through Prosper have an annual percentage rate (“APR”) of 8.99% to 35.99%, terms between two and five years, and an origination fee from 1% to 9.99%. For example, a three-year $10,000 personal loan with an interest rate of 9.38% and a 9.99% origination fee results in a 16.74% APR. You would receive $9,001.00 and make 36 scheduled monthly payments of $319.77. A five-year $10,000 personal loan with an interest rate of 11.14% and a 9.99% origination fee results in a 15.84% APR. You would receive $9,001.00 and make 60 scheduled monthly payments of $218.12. Whether you are eligible for a specific APR or loan term will depend on a number of factors, including (but not limited to) your current credit rating and information you provide in your application. The lowest rates are for the most creditworthy applicants. Your actual rate may differ. You may receive your funds one business day following your acceptance of the loan offer, completion of all necessary verification steps and final approval. One business day funding is also dependent on your bank’s transaction processing speed. All personal loans made by WebBank.
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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
| Review about | Loan process | Customer service | Speed of process |
|---|---|---|---|
| Positive experience | 157 | 84 | 143 |
| Negative experience | 31 | 60 | 12 |
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.
Prosper information
| Age of business | 18 years |
|---|---|
| Year founded | 2005 |
| Headquarters | P.O. Box 886081, Los Angeles, CA 90088-6081 |
| Phone Number(s) | 866-615-6319 |
| support@prosper.com | |
| Website | https://www.prosper.com/ |
| Is website secure | Yes |
| Forms of contact available | Phone, email, mail |
| Trade organization membership | — |
| States of operation | 48 states |
