Prosper Personal Loans is a good option for those looking for a good feeling from the low interest rates offered on credit cards and payday loans. However, in this article, we will take a closer look at everything you need to know about profitable loans.
Prosper is one of the pioneers of peer-to-peer lending, an online personal loan service that connects loan borrowers with investors who can choose to finance their personal loans.
This is a great option if you are heavily indebted with high income (the average for Prosper borrowers is around US $ 89,000).
Loans can be used for any purpose, but debt consolidation is a common practice for Prosper clients.
About Prosper loans
Introduced in 2006, Prosper was the first p2p lending platform that helps good credit borrowers find investors who can raise funds for their loan.
The American company is known for providing an unsecured personal loan of up to USD 35,000 for debt consolidation, home renovations, organizing any event, or paying off a credit card.
Currently Prosper has reached $ 1,390,000 364 and has provided over $ XNUMX million in loans.
Pros and cons of Prosper loans
Pros
Minuses
How does Prosper work?
Prosper's typical annual interest rate ranges from 6.95% to 35.99%. There is also a commission for issuing a loan in the amount of 2.4% to 5% of the loan amount. In other words, the amount you receive is the amount requested. minus the registration fee.
After approval, the loan amount will be credited to your bank account within 1-3 business days. The monthly repayment schedule lasts three to five years (36 to 60 monthly payments).
Prosper loans are usually undertaken by consumers with good or excellent credit ratings. Prosper's minimum credit rating standard is 640 and the average is 710.
If you have bad credit, Prosper is probably not the best option because it will mean a high interest rate and high creation fees.
Types of promising loans
Prosper offers a wide range of loans and loan amounts. All of these loans are unsecured, which means that you do not need to come up with any collateral to be eligible for them.
1. Auto and auto loans. These loans are used for emergency repairs, unexpected expenses, or to buy a new or used car.
2. Loans for debt consolidation. This is one of the most popular loans offered by Prosper. Debt consolidation loans are used to get rid of credit card debt and simplify many monthly payments into one simple payment.
3. Green loans. Prosper green loans are used to finance environmentally friendly projects. They can also be used for sustainable housing or business upgrades such as solar panels.
4. Loans for home renovation. These loans can be used to renovate your home or improve existing problems.
5. War loans. Prosper takes on the hassle of active duty military personnel applying for a loan. These loans can be obtained from anywhere and can be used to cover the costs of moving, home renovations, or new household items.
6. Short-term or bridging loans. Sometimes you just need a small short-term loan that can be repaid within 3-5 years. Prosper also suggests them.
Details of Prosper Personal Loans
Prosper loan requirements
Fees and fines charged by Prosper
Prosper loan approval process
Prosper's user-friendly website allows borrowers to apply for a loan in less than 10 minutes. Here are the steps to follow:
Other suggested benefits
Prosper Loans Compared 2021
1. OneMain Financial
Offering personal loans up to $ 20,000, OneMain is not a peer-to-peer lender like Prosper, but it is still a good choice for those with poor credit because there is no minimum credit rating to file.
OneMain also gives you more flexibility in choosing the loan term. Interest rates are comparable to Prosper for those with poor credit, but those with a good credit rating may find a better deal elsewhere.
2. LendingClub
Another peer-to-peer lender that brings together borrowers and lenders, LendingClub offers loans up to $ 40,000 USD 6.95 with interest rates starting at 35.89% for those with excellent credit. If your loan is not large, you can pay up to XNUMX%.
There are no hidden fees or prepayments and interest rates are fixed. The credit club requires, however, a minimum credit rating of 600, which may make it unaffordable for some borrowers.
3. Wells Fargo
A good choice if you are looking for a larger loan, Wells Fargo offers fixed individual loans ranging from $ 3,000 to $ 100,000. You will not be charged any clearance or prepayment fees, and if you have a checking account with Wells Fargo, you may be eligible for discounts.
You can apply online and get approved in just 15 minutes, and the funds will be transferred to your account the same day.
Conclusions
Prosper is a good choice if you need a loan but are not eligible for traditional funding. With fixed interest rates and reasonable, comparable to most credit cards and payday loans, and there are no prepayment fees.
Prosper is one of the pioneers of peer-to-peer lending, an online personal loan service that connects loan borrowers with investors who can choose to finance their personal loans.
This is a great option if you are heavily indebted with high income (the average for Prosper borrowers is around US $ 89,000).
Loans can be used for any purpose, but debt consolidation is a common practice for Prosper clients.
About Prosper loans
Introduced in 2006, Prosper was the first p2p lending platform that helps good credit borrowers find investors who can raise funds for their loan.
The American company is known for providing an unsecured personal loan of up to USD 35,000 for debt consolidation, home renovations, organizing any event, or paying off a credit card.
Currently Prosper has reached $ 1,390,000 364 and has provided over $ XNUMX million in loans.
Pros and cons of Prosper loans
Pros
- Loans are available to borrowers who cannot qualify for participation in traditional banks.
- The auction environment provides an opportunity to raise interest rates
- A soft loan request allows you to apply for a loan without affecting your loan; the request is only published if you finance the loan
- Puts a human face on a loan; borrowers have the opportunity to explain why they are a good investment
- No early payment penalties
Minuses
- For all but the most qualified borrowers, interest rates are still high.
- May charge a fee for issuing a loan
- You are limited to a loan term of 3 or 5 years.
How does Prosper work?
Prosper's typical annual interest rate ranges from 6.95% to 35.99%. There is also a commission for issuing a loan in the amount of 2.4% to 5% of the loan amount. In other words, the amount you receive is the amount requested. minus the registration fee.
After approval, the loan amount will be credited to your bank account within 1-3 business days. The monthly repayment schedule lasts three to five years (36 to 60 monthly payments).
Prosper loans are usually undertaken by consumers with good or excellent credit ratings. Prosper's minimum credit rating standard is 640 and the average is 710.
If you have bad credit, Prosper is probably not the best option because it will mean a high interest rate and high creation fees.
Types of promising loans
Prosper offers a wide range of loans and loan amounts. All of these loans are unsecured, which means that you do not need to come up with any collateral to be eligible for them.
1. Auto and auto loans. These loans are used for emergency repairs, unexpected expenses, or to buy a new or used car.
2. Loans for debt consolidation. This is one of the most popular loans offered by Prosper. Debt consolidation loans are used to get rid of credit card debt and simplify many monthly payments into one simple payment.
3. Green loans. Prosper green loans are used to finance environmentally friendly projects. They can also be used for sustainable housing or business upgrades such as solar panels.
4. Loans for home renovation. These loans can be used to renovate your home or improve existing problems.
5. War loans. Prosper takes on the hassle of active duty military personnel applying for a loan. These loans can be obtained from anywhere and can be used to cover the costs of moving, home renovations, or new household items.
6. Short-term or bridging loans. Sometimes you just need a small short-term loan that can be repaid within 3-5 years. Prosper also suggests them.
Details of Prosper Personal Loans
- Loan term 3 or 5 years
- Range of per annum up to 5.99% - 35.99%
- The loan amount ranges from $ 2,000 to $ 35,000.
- Funds are received within one to three business days after approval
Prosper loan requirements
- Minimum credit rating 640
- 710 Prosper borrowers' average FICO score
- Minimum credit history 2 years.
- Average borrower 11 years
- The maximum debt to income ratio is 50% (no mortgage).
Fees and fines charged by Prosper
- Shipping commission from 1% to 5%.
- No prepayment penalties
- In the event of late payment fees, the higher of $ 15 or 5% of the payment amount will be charged
- Failed payment fee of $ 15
- No fees for processing personal checks
Prosper loan approval process
Prosper's user-friendly website allows borrowers to apply for a loan in less than 10 minutes. Here are the steps to follow:
- The prequalification stage involves creating a list of loans and choosing the desired interest rate at which he / she wants to receive the loan.
- After the list of loans is created, interested investors will contribute funds to the created listing. At this stage, a loan request is sent to all investors.
- As soon as the investor agrees to lend his money on the loan claimed, the borrower will soon receive the money.
- After receiving the loan, all the borrower has to do is set monthly payments to pay off the loan.
Other suggested benefits
- The borrower can take out a loan or credit without even contacting a bank or credit companies with high interest rates. Prosper assists in issuing loans only through the Internet.
- The online loan application process is quite simple. A step-by-step guide is provided when completing the loan application form.
- The whole process is quite simple and hassle-free than the traditional loan application process. Documentation and formalities are minimal compared to other companies.
- There is a chance to get loan approval even if the borrower's credit is bad. The borrower is given the opportunity to explain what happened and why, which, of course, is not possible in the case of local banks.
Prosper Loans Compared 2021
1. OneMain Financial
Offering personal loans up to $ 20,000, OneMain is not a peer-to-peer lender like Prosper, but it is still a good choice for those with poor credit because there is no minimum credit rating to file.
OneMain also gives you more flexibility in choosing the loan term. Interest rates are comparable to Prosper for those with poor credit, but those with a good credit rating may find a better deal elsewhere.
2. LendingClub
Another peer-to-peer lender that brings together borrowers and lenders, LendingClub offers loans up to $ 40,000 USD 6.95 with interest rates starting at 35.89% for those with excellent credit. If your loan is not large, you can pay up to XNUMX%.
There are no hidden fees or prepayments and interest rates are fixed. The credit club requires, however, a minimum credit rating of 600, which may make it unaffordable for some borrowers.
3. Wells Fargo
A good choice if you are looking for a larger loan, Wells Fargo offers fixed individual loans ranging from $ 3,000 to $ 100,000. You will not be charged any clearance or prepayment fees, and if you have a checking account with Wells Fargo, you may be eligible for discounts.
You can apply online and get approved in just 15 minutes, and the funds will be transferred to your account the same day.
Conclusions
Prosper is a good choice if you need a loan but are not eligible for traditional funding. With fixed interest rates and reasonable, comparable to most credit cards and payday loans, and there are no prepayment fees.
