Prosper Personal Loan

Do you need money with a certain urgency, but would still like to get the best possible payment terms and conditions? In that case, the Prosper Personal Loan has some solutions waiting for you. It doesn’t matter if you have to cover an unexpected medical bill or would like to consolidate credit card debt, these options are here for you. 

This option is ideal for those who are in a hurry. We know that some traditional banks can take a few days to give you an approval and some more business days to get you funded. That’s why the online financial services providers and fintech are gaining popularity every day. 

Are you worried about getting a loan with just a fair credit score? That might be a problem with some other lenders, but Prosper Personal gives you the chance of using a co-borrower that can complement your score. 

Are you ready to find out more about this personal loan service? Keep reading to understand how it works, pros and cons, as well as how to get an approval easily with or without an excellent score. 

How does Prosper Personal Loan work?

Prosper Personal Loan is a peer-to-peer lending platform. This means that you can get a loan directly from another individual, rather than a financial institution. Prosper actually works as a broker of sorts that connects those who are able to fund a loan to the user. 

It’s quite the new way of getting funds and has been used since 2005. While peer-to-peer lending is still a novelty for many people, its use is becoming more and more popular, as the rise of sites such as Prosper prove. This also means that Prosper isn’t a bank per se, but an intermediary. 

Since it works in a more flexible way than a bank, people with 640 scores or higher can already apply and look for an interesting rate. Everything is fast and hassle-free, to make a personal loan much simpler for you. 

This way, even those with fair credit scores can apply and get a good result. Just remember that, since this is a service that connects you to the actual lenders, the interest rates might not always be the best in the market, especially if your score isn’t excellent yet. 

Who is Prosper Personal Loan for?

The Prosper Personal Loan is the ideal choice for someone who wants to consolidate high interest debt, such as credit card debts. After all, these loans usually start at a reasonable amount, $2.000, which is enough to pay off your balances without getting into way more debt than you actually needed. 

Those who just have fair credit and would like to get a better interest rate with a co-borrower will also enjoy this platform. Many digital lenders don’t allow for this sort of action, which can make the business a bit more riskier. But Prosper Personal Loan allows for co-borrowers and up to two loans using the platform. 

If you have an excellent credit score, you might get better interest rates and payment terms with other lenders. In this case, we recommend that you do some research before settling for Prosper Personal Loan. 

Types of objectives you can use this loan for

Personal loans typically have a few permitted uses. Prosper will allow you to use these funds for: 

• Home improvement; 
• Medical or dental costs;
• Vehicle purchases;
• Credit card debt consolidation; 
• Other large purchases. 

However, you can’t use this personal loan to pay off education costs. 

Advantages of using Prosper Personal Loan

Prosper Personal Loan works with a user friendly platform that makes the online experience very simple. But there are a few more pros that we’d like to talk about, such as: 

• 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. 

This means that you can choose from a wide variety of loan amounts and even choose the best payment date. The Prosper Personal Loan helps to make loans easier to access and make lives better by helping you with any immediate financial needs. 

Cons of using this loan service

Despite being quite useful for a few users, Prosper Personal Loan might give you some headaches when it comes to interest rates. It isn’t the best option in the market, although its rates are indeed lower than those of credit cards, for example. 

It also has an origination fee, which you might be able to avoid by looking for a different personal loan provider. There is a limit to how much you can negotiate when it comes to payment terms, so people with fair scores could find this to be a problem. 

But we must remind you that choosing a personal loan provider is a personal affair. All of the disadvantages we mention here could work in your favor if you don’t have a good enough score for other services or are stuck with credit card debt. 

How to qualify for this personal loan?

The Prosper Personal Loan has a few requirements to approve or decline a loan request, which you can find out more about below: 

• Credit score: you should have a credit score of at least 600, which is enough to get a small to mid-sized loan; 
• Income requirements: while there aren’t any income requirements to apply for Prosper, the average income of users in the site had an annual income of $113.000; 
• Co-applicants: you have a higher chance of getting an approval if the co-applicant or co-borrower is related or married to you. 

Payment terms, conditions and fees

There are a few fees for those who get an approval for a Prosper Personal Loan: 

• 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. 

You can apply easily using the Prosper Personal Loan website or through the phone. But be aware that those who want to apply with a co-borrower cannot apply using the company’s phone service.

Conclusion

In conclusion, Prosper Personal Loan offers a flexible peer-to-peer lending platform that caters to borrowers looking for alternatives to traditional bank loans. It stands out with its accessible eligibility criteria starting from a credit score of 640 and the option to apply with a co-borrower, which can enhance approval chances and potentially lower interest rates.

While it provides benefits like no prepayment penalties, flexible payment terms, and loan amounts ranging from $2,000 to $40,000, it’s important to note the origination fee and potential penalty fees for late or returned payments. Interest rates may not always be the most competitive, particularly for those with fair credit scores.

Ultimately, Prosper Personal Loan is ideal for consolidating high-interest debt or covering unexpected expenses, offering a user-friendly online experience. Prospective borrowers should consider their specific financial needs and compare offers to determine if Prosper’s terms align with their goals.