Prosper Personal Loans Review for 2021

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Prosper says they make personal loans easy, but is it the right personal loan company for you? Let's find out.

Ready to prosper? Join the thousands who have achieved their financial goals through this online peer-to-peer lending platform that offers personal loans. If you’re in need of money — Prosper can help and you don’t need to have excellent credit.

Answer a few questions and get your lowest eligible rates instantly. Rates range from 7.95-35.99% APR. If you are looking to get a personal loan, read more to see why Prosper may be the right company to use.

What is Prosper?

Prosper is a leading online lender that offers personal loans fast and with competitive rates. Prosper is a peer-to-peer lender, meaning your loan typically will come from individual investors.

Prosper offers unsecured personal loans that can be used for almost any purpose, including debt consolidation and home improvements. The loans require a fixed monthly payment over three or five years.

Just to begin our Prosper review, if you are hoping for a deposit on the same day, Prosper is not the lender for you. Because your loan is paid by several investors instead of one, you will not receive your money immediately (takes a few days).

How does Prosper work?

Want to get a debt consolidation loan? Paying for a large expense like home improvement or a special occasion? Prosper has you covered. Prosper offers personal loans up to $40,000‎. It is a great personal loan option for those who don’t have an excellent credit score.

It is a trustworthy way to get the money you need. Plus, you can save thousands with a fixed low rate personal loan today. Or you can use it to consolidate credit card or other debt into a single personal loan.

You will need to meet the following requirements to get approved for a personal loan through Prosper:

  • A debt-to-income ratio below 50%.
  • Income greater than $0.
  • No bankruptcies in the last 12 months.
  • Fewer than five credit inquiries in the last six months.
  • Minimum of three open credit lines on a credit report.

If this sounds like you, you can go ahead and check your rate here. Getting a loan with Prosper is easy:

1. Check your rate

Select your loan amount, answer a few questions and get your lowest eligible rates instantly.

2. Choose your loan

Choose the offer with the terms that work best for you.

3. Get your funds

Your money goes straight to your bank account via direct deposit.

Click here to get started.

Prosper Benefits

A personal loan from Prosper offers a few different unique benefits compared to other lenders.

Interest Rates5.99 – 35.99%
Loan Amounts$2K to $35K
Loan Terms3 -5 years
  • FICO score of 640 or above
  • DTI ratio below 50%
  • No bankruptcies (in last year)
  • Fewer than seven credit bureau inquiries in the last 6 months
  • Minimum of 3 open trades on your credit report
Good ForPeople with less than established credit
Worst ForPeople who need the funds right away
Better Business Bureau RatingA+
In Business Since2005
Standout Features
  • Fixed-rate loans
  • Borrow up to $35,000
  • No prepayment fees
  • Checking rates doesn’t affect credit score

Prosper Features

Personal loans

Available for those who have insufficient credit: Prosper is a good choice for those who have been denied by banks and people who can not get a reasonable interest. It is one of the best bad credit loans. Prosper offers loans to people with a FICO score of only 640. Although high-risk borrowers have to pay higher interest rates, they are certainly cheaper than what you could get with a lender.

Fixed interest rates

Fixed-rate loans: All Prosper loans are delivered with a fixed interest rate so that in the long term you do not have to worry about an increase.

High lending limits

Borrowing up to $40,000: With Prosper, you can borrow between $2,000 and $40,000. Most personal lenders do not allow you to borrow more than $ $25,000. Prosper is the right choice if you need to borrow more money.

Quick online application

Fast online application: by answering a few basic questions about yourself and your finances, you receive an estimate of your interest rate.

No prepayment fees

No Early Redemption Fee: If you decide to repay your loan before the end of the term, no extra costs will be charged to compensate for lost interest.

Peer-to-peer lending

Earn money by investing: If you have money, you can earn some by paying part of the loans of other people. When they repay the loan, you receive the money that you have invested plus interest. The amount you earn depends on the interest rates of the loans to which you have contributed.  Peer-to-peer loans are a popular form of alternative investment.

HELOC loans

In addition to personal loans, detailed above, Prosper recently added the home equity lines of credit (HELOCs). Home equity loans and home equity lines of credit (HELOCs) offer homeowners a way to access cash.

Apps for iOS and android devices

Mobile money management apps: Prosper mobile apps for iOS and Android devices help you track your spending and credit over time. Register all your purchases to see how you spend your money and look for chances to save. You can add protection against identity theft for an extra charge.

My experience using Prosper

I needed a personal loan and decided to go with Prosper. Prosper requires that you choose a term of three or five years. While this should be good for most people, most lenders give their borrowers more flexibility when repaying their loans. But for me, these terms worked thankfully.

I got approved pretty easily and got funded within a few days (3 days). The whole process from the beginning to the repayment process was pretty seamless. There were no surprises and the signup process literally took a few minutes.


  • Unsecured personal loans do not require any guarantee
  • Increase your credit score
  • Get the money you need quickly
  • Good credit can give you a lower interest rate
  • Most are fixed-rate loans, which makes budgeting easier


  • Prosper charges start-up costs that are equal to two to five percent of your borrowed amount
  • Bad credit may result in the rejection of your application
  • Approved borrowers with subprime credit could receive higher interest rates
  • Many come with start-up costs or borrowing
  • You may not get your money right away, so it’s important to remain patient. If you wanted to compare other quicker personal loan options, check here.

Prosper vs. competitors

Interest rates6.95% to 35.99% APR8.13% – 35.99%starting at 3.99% APR (with autopay)*
Pre-payment penaltyNoNoVaries by lender, but mostly no
Time to receive funds (average)5 days1 day (for most customers)Varies by lender
Check rate with no hard credit inquiryYesYesYes
CompanyLoan AmountAPR
best personal loansbest personal loans$1,000 to $50,0004.37% - 35.99%


sofisofitrustpilotUp to $100,0004.99% - 19.63%


best personal loansbest personal loans$1,000 to $100,0005.99% to 35.99%


zippyloanbest personal loans$100 to $15,0005.99% - 35.99%


A Smart Choice

It can be considered a smart choice to think about getting a personal loan from Prosper, as they offer you the opportunity to get the money that can really help you out of a bind.

This bind will come and go, but the credit score increase that you will get will only provide you with a stronger financial platform from which to work with. When you make payments to Prosper, that meet the timeframe that was laid out you will be establishing credit.

This credit will serve as a strong point when you need to apply for other various forms of credit, such as store line credit or a future loan. Once you have paid back in full the money you borrowed from the prosper, they will report to the three major credit agencies and inform them on your payment history with them.

This will go on record and will be shared with other various lenders and credit companies. Good reports go along way when it is in regard to money borrowed.

Prosper Reviews Summary

Consolidating debt? Paying for a large expense like home improvement or a special occasion? Prosper has you covered.

Prosper is a good option for those who want to reduce their monthly payments and want to repay their loans over a longer period. Times are fixed at 36 or 60 months – and if your financial situation improves and you can pay faster, no penalty is imposed.

Prosper is the right choice if you need a loan, but are not eligible for conventional financing. Interest rates are reasonable compared to most credit cards and there are no prepayment costs.

If you wanted to try it out, your experience will be straight-forward:

  • Get a Low Rate: Sign up for Prosper and get a loan with a low, fixed-rate that never goes up. Check your rate online instantly.
  • Pay at Your Own Pace: Pay off your loan with fixed 3 or 5-year* terms, and a budget-friendly, single monthly payment.
  • Save Money: Save money with no pre-payment penalties.

About the author

Brian Meiggs
Brian Meiggs is a personal finance expert, and the founder of My Millennial Guide, a personal finance site helping you put more money in your pocket. He helps millennials follow the smart money in order to increase their earning potential and start building wealth for the future. He regularly writes about side hustles, investing, and general personal finance topics aimed to help anyone earn more, pay off debt, and reach financial freedom. He has been quoted as a top personal finance blogger in major publications including Yahoo! Finance, NASDAQ, Discover, MSN Money and more.
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Bottom Line:

Prosper is a good option for those who want to reduce their monthly payments and want to repay their loans over a longer period. Times are fixed at 36 or 60 months - and if your financial situation improves and you can pay faster, no penalty is imposed.