Prosper Personal Loans Review: A Great Financing Option

is an online lending marketplace that matches borrowers with investors. Borrowers submit their loan application and upon approval, choose their loan amount, and then find a number of online marketplace lender options based on their qualifications.When looking for a personal loan, make sure you check out our list of the best personal loan companies. Depending on your situation, you might be surprised by what’s out there.

provides unsecured, fixed-rate, simple interest, fully amortized personal loans. These loans can be used for debt consolidation, home improvements, and many other personal uses. Loan amounts vary from $2,000 to $40,000.Loan types offered include the following:

Prosper allows you to check your rate online instantly. All are welcome to apply.Prosper uses a proprietary algorithm along with credit information provided by TransUnion. Applicants may be denied based on information from the application or credit bureau information. If an applicant is denied, they will need to wait 120 days before applying again.An applicant may be given pre-approval status. Pre-approval does not mean the applicant has been approved for a loan, as it is a not a final offer. Applicants must go through the entire application process so creditworthiness can be checked. Upon approval, Prosper works with WebBank to underwrite the loan.Minimum eligibility criteria include:”Repeat borrowers must meet several additional criteria:”Approved loans have their funds submitted by the originating bank on the same day as the loan origination. It can take one to three business days to receive funds depending on the applicant’s bank.

APRs on Prosper loans range from 7.95% to 35.99% for first-time borrowers with the lowest rates for the most creditworthy borrowers. Loan terms are from three to five years.For example, a three-year $10,000 personal loan would have an interest rate of 11.74% and a 5.00% origination fee for an annual percentage rate (APR) of 15.34% APR. You would receive $9,500 and make 36 scheduled monthly payments of $330.9. A five-year $10,000 personal loan would have an interest rate of 11.99% and a 5.00% origination fee with a 14.27% APR. You would receive $9,500 and make 60 scheduled monthly payments of $222.39. Origination fees vary between 2.41%-5%. Personal loan APRs through Prosper range from 7.95% to 35.99%, with the lowest rates for the most creditworthy borrowers.For each loan, interest accrues on the principal balance daily.Eligibility for personal loans up to $40,000 depends on the information provided by the applicant in the application form. Eligibility for personal loans is not guaranteed, and requires that a sufficient number of investors commit funds to your account and that you meet credit and other conditions. Refer to Borrower Registration Agreement for details and all terms and conditions. All personal loans made by WebBank, Member FDIC.

There isn’t really anything concerning in the fine print. Prospers seems to be upfront about its loan policy and terms. Loan fees can be found in its website help section. Some fees to note include:

Using Prosper loans is similar to using a credit card. Both are unsecured. The difference with Prosper is that the loan rate is fixed. Prosper loans can be used for a wide range of needs, as mentioned above. So when does it make sense to take out a Prosper loan?Instead of financing a purchase on a credit card, which can have a fluctuating rate, Prosper may be a better alternative because of its fixed rate. With loan terms of three to five years, you should have plenty of time to pay off the purchase.Of course, if you have poor credit, your rate will be high. It will likely be comparable to that of a credit card. In this case, Prosper may still make sense because loans have a fixed interest rate.Because the loan origination fee is included in the loan APR, it makes comparing the Prosper loan with a credit card very easy. Whichever of the two that has the lowest APR is the best deal.

If you are short on cash, have an emergency, or don’t have any options for financing a needed purchase,can be a good choice. With its fixed APR, there aren’t any surprises. Origination fees are included in the quoted APR that you receive after filling out an application.While not everyone will qualify, those who do will have a great financing option.

Written by Investors Wallets

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