Are you looking for a personal loan to consolidate credit card debt or for many other reasons? There’s a good chance that you didn’t check out a peer-to-peer option yet, which could make your life a bit simpler. These types of companies are already becoming a popular option for anyone that wants to find the perfect loan choice.
That’s why Prosper is a company that became a favorite for many credit seekers. After all, they are able to connect users to lenders that might be more favorable to fund their loans than a traditional bank.
This could mean lower interest rates for those with excellent credit scores or just better accessibility for those with fair scores that need a small loan to get their financial life together. If that is your case, then Prosper Personal Loan might be a good choice for you.
Keep reading to understand how Prosper works, as well as their payment terms, interest rates and how to qualify.
How does Prosper Personal Loan work?
Prosper Personal Loan isn’t a traditional bank, but a peer-to-peer lending tool. Which means that it works as a sort of intermediary to connect people looking for funds and investors. The best part is: you won’t depend on a single investor to get your loan, since multiple parties could be a part of it.
This helps a larger number of people get access to a loan while Prosper gets a cut of the lenders’ profits. There is even a pre qualification tool. That will help find out the APR that is likely to incur on your loan and origination fee. In a way, it makes things much simpler and more flexible for users, who can get funding within two days at best.
Advantages of using Prosper Personal Loan
Prosper Personal Loan has a great way of helping people who need a loan: offering competitive interest rates even for those who hold a 600 score. Other pros that you’ll find include:
- No prepayment penalties;
- Accessible to borrowers who have at least a fair credit score;
- Allows for joint loan applications;
- Advantages for repeat borrowers;
- Flexible payment due dates;
- $2.000 starting loan;
- $40.000 maximum loan.
Payment terms, conditions and fees
Here comes the negative part about using a Prosper Personal Loan, there are more fees than you might be used to in lending. Some of them include:
- Origination fee of 2.41% to 5% of the loan amount;
- $15 returned payment fee;
- $15 or 5% late payment fee;
- 3 to 5 years loan term.
If you feel that this is the right loan for you, there’s an easy way to apply using the Prosper Personal Loan website. There is also a telephone service for applications.
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