Prosper Loans

How hard is it to get a loan from Prosper?

In comparison with other online lenders, getting a loan with Prosper is fairly easy. With a minimum credit score of just 600 and the ability to apply for a loan with a cosigner, Prosper?s personal loan requirements are relatively competitive. Loan amounts can vary from $2,000 to $40,000 and are typically funded within 5 business days after approval. Because Prosper is a peer-to-peer lending marketplace, your loan will be funded by individual investors who are viewing your credit risk and other information in order to make a lending determination. Investors on the Prosper platform have up to 14 days to decide whether or not they want to fund your particular loan based on your risk profile.

Do Prosper loans hurt your credit?

As with any financial product, your personal loan with Prosper will only hurt your credit score if you let it. As long as you keep your account with them in good standing and avoid missing any payments or making any late payments, you should not see a negative effect on your credit score. In some cases, opening a new line of credit or loan can cause an initial hit to your credit score, resulting in a slight dip. However, even if this does occur, this negative effect should not last long. After a few months of paying on time and generating consistent reporting, your credit score should bounce right back to where it was before the new loan. In addition, if you have many hard inquiries, the application process for a Prosper loan can trigger another inquiry that may lower your credit score.

What documents does Prosper ask for?

During the application process, online lenders like Prosper may ask for a variety of documentation and paperwork designed to protect the bank and you from a negative outcome. These items will be used to verify your identity, financial information, and other important details. In addition to requesting a valid photo identification, Prosper can require borrowers to submit information on their income and place of employment. This documentation includes the following necessary items: Pay stubs and W-2s if employed Recent tax returns if self-employed Bank statements and other third-party documentation if retired or relying on investment income If you have a co-borrower, they may also need to submit all of this same documentation to Prosper in order to have their information verified as well. Prosper may also contact your bank or other financial institution directly in order to verify your account information. The same goes for your place of employment and verifying that you have a reliable and steady income that is sufficient to support the repayment of your account balance. All of this process is done to ensure that lenders do not take on borrowers who are at a high risk of defaulting on their loans.

What fees does Prosper charge?

There are a few fees that Prosper charges borrowers on their financing products such as personal loans. Similar to most lenders, Prosper chargers interest fees that must be paid back monthly. Interest rates on personal loans through Prosper generally fall within the 7.95% ? 35.99% range, depending on your credit score. In addition, loan origination fees can vary from 2.41% ? 5%. A loan origination fee is essentially a bookkeeping or processing fee that you will pay in order to receive your funds. This fee is typically deducted from your loan amount, so you do not need to pay it out of pocket. While there are no early payment fees, there are late payment fees that will accumulate once 15 days have passed since the payment due date. This fee is typically $15 or 5% of the amount due.

How long has Prosper been in business?

Prosper has been in business for more than 15 years, making it one of the most trusted online lenders in the United States. The company was founded in 2005 as the nation?s first peer-to-peer lending marketplace. Prosper was launched by Chris Larsen and John Witchel, funded by a variety of investors, and is based out of San Francisco, California.

How many borrowers has Prosper lent to?

According to the Prosper website, the company has lent out more than $20 billion in funds to just over 1,180,000 borrowers since the time of their founding. At the time of this writing in January 2022, the online marketplace originated more than 3900 loans in the past week alone. Loan amounts range from $2,000 ? $40,000 and can be used to cover a variety of personal financial needs from debt consolidation to home improvement projects.

Can you have 2 loans with Prosper?

The short answer is yes, you can have more than one loan through the Prosper platform. As long as they meet the requirements, Prosper allows borrowers to take out a second loan while they are still paying off their first one. To qualify, applicants must have a credit score of 640 or higher, a combined loan limit of less than $40,000, and maintain their loan in good standing with no late payments in the last year. In addition, borrowers must have had their original loan for at least 9 months and be able to show a history of on-time payments.

Are Prosper loans simple interest?

According to Prosper, all of their loans are simple interest loans. In addition, they are fully amortized, and all interest rates are fixed. In contrast to compound interest, which periodically recalculates interest on the original loan amount plus accumulated interest, simple interest applies only to the initial lump sum of money that was borrowed. Simple interest is the most common type of interest you will encounter when taking out a personal loan and is certainly the preferred method of borrowers.

How often does Prosper report to credit bureaus?

When you review the personal and financial data that is available on your credit report, you will see that payment information is listed on your credit report on a month-by-month basis. This means that lenders typically report to all 3 credit bureaus once a month. Each billing cycle, financial institutions like Prosper take note of every account holder?s activity and send the information over to Experian, Equifax, and TransUnion to be recorded. This will consist of whether or not the borrower was late on their monthly payment, if their account is open or closed, and if their account is still in good standing.

What is a Prosper Rating?

As a peer-to-peer lending marketplace, the process of applying for and receiving a loan from Prosper is very unique. The Prosper Rating system uses a risk-analysis system to determine the creditworthiness of a particular individual. The borrower then can have their loan funded by potential investors. The Prosper Rating translates into the estimated average annual loss rate to the investor. These ratings range from AA for a 0-1.99% rate to HR for a rate higher than 15%. To reach the estimated loss rate, the lender takes the historical performance of Prosper loans with similar characteristics, the borrower?s official credit score, and a proprietary in-house Prosper Score. The Prosper Score is based on several factors including number of delinquent accounts, number of credit inquiries, amount of available credit, and bankcard utilization.