Prosper personal loans: 2024 Review

Prosper is best for borrowers with fair credit who want to consolidate high-interest debt 

Prosper was named Bankrate's best personal loan for borrowers with fair credit in 2024. Prosper's flexible eligible requirements can help borrowers with fair credit save money through consolidating existing debt. 

Prosper is the only peer-to-peer lender among Bankrate’s best lender picks. The lender's model sets a much lower credit score requirement than many competitors. Plus, the lender allows co-applicants. Adding a co-applicant may help you qualify if you wouldn’t have otherwise. It could also help you land a higher amount or a lower rate that saves you money on interest.

Prosper personal loan purposes 

Prosper’s array of loan products, including personal and home equity loans, can be used for the standard personal loan purposes. Borrowers may use the funds for everything from financing home improvement to vehicle purchases. 

The lender’s flexible acceptance criteria and fairly low starting rate make their loans a particularly good fit for consolidating high-interest debt. Consolidating debts can reduce the amount of interest you pay and make it easier to keep up with payments. And if your credit improves while you repay a debt consolidation loan, you may be able to refinance to a still-lower rate with another lender.

As with most personal loans, borrowers may not use Prosper’s loans for post-secondary education expenses.

Where Prosper personal loans stand out 

• Good online experience: Personal loans made by WebBank feature a streamlined online application process. You can receive the funds in your account in just one business day. According to its website, borrowers only need to provide basic personal and financial information to prequalify. Then, you can review your personalized loan offers and then choose the best terms for your financial situation.
• No prepayment penalties: You will not pay an an early payment penalty if you decide to pay the loan off early. What's more, Prosper offers a unique refund. if you prepay your loan, you may be entitled to a refund of any unearned portion of the origination fee that's over 5 percent of the original principal amount. 
• Joint loan applications: Not every lender allows co-borrowers. Adding a creditworthy co-borrower gives applicants a better chance at qualifying for a loan and scoring a more competitive interest rate. In this case, both borrowers are held liable for the loan balance and are responsible for the monthly payments.

Where Prosper personal loans fall short 

• Origination fee: Borrowers pay an origination fee between 1 and 9.99 percent, depending on their creditworthiness. Like most lenders, Prosper takes the origination fee from the loan balance immediately. Keep this in mind when applying, especially if you need a specific loan amount. 
• High maximum interest rate: The interest rate is capped at 35.99 percent, making the personal loans relatively costly for borrowers with lower credit scores. 
• No autopay discount: Unlike many other online lenders, Prosper does not offer a rate discount when you set your account for automatic payments. Autopay discounts typically knock off anywhere from 0.25 percent to 0.50 percent from a borrower's APR just for enrolling.  

Prosper customer resources

Customer support 

Users can receive assistance through Prosper's online messaging platform, over the phone, through email or by mail. 

If you are not a current customer, representatives are available by phone at 866-615-6319, Monday through Friday from 5 a.m. to 5 p.m. PT. You can also email support@prosper.com.

You can call 866-615-6319 from Monday through Friday between 5 a.m to 7 p.m. PT for questions about an existing loan. Existing borrowers can also email support@prosper.com. 

Digital experience 

Prosper's application and pre-approval process is completed fully online with the option for assistance over the phone if necessary. Android and Apple users can also apply for a loan through Prosper’s mobile app. The app averages 4.6 of 5 stars after 3,440 reviews on the Google Play store.

While it doesn't have in-person support, the lender's online Help Center has a plethora of resources for new and existing Prosper customers. Plus, if you'd rather not speak over the phone or wait for an email response, the lender lists general and product-specific FAQs.

How this lender compares

Prosper vs. Happy Money 

Just like Prosper, Happy Money offers debt consolidation loans. But unlike Prosper, Happy Money does offer borrowers the option to pay their creditors directly, for a smoother process. Its minimum credit score required is 640, the same as Prosper's. That said, Happy Money’s loans are specifically designed to pay off credit card debt, so if you have other types of unsecured debt you’d like to consolidate, then Prosper is the better choice.

Prosper vs. Upstart

Upstart offers personal loan amounts similar to those of Prosper. But, if consolidating debt is your ultimate goal and you have fair credit or better, Upstart’s loans can definitely maximize your savings with its low starting APR. Upstart’s origination fee can be on the steep side, capped at 12 percent, which is something to consider when comparing loan offers from both lenders.

How Bankrate rates Prosper