Prosper Loans Review - Peer to Peer Lending

How Does a Prosper Loan Work?

Assigning Your Prosper Rating.

The first thing that you'll do at Prosper is create and account and provide your personal information.  You'll be prompted to authorize Prosper to view your credit report, don't worry this is a soft-pull that won't affect your credit. They on perform a hard-pull if your loan is approved and funded.  They need this to see what your credit situation is like so they can assign you a credit grade.

Prosper uses a combination of your Experian credit score and a custom method to determine your rating. They will then assign you a score from AA (the best) to HR (high risk). Much like any other lender a better rating will equal a lower interest rate.

Click Here to Get Your Prosper Rating

Getting Your Prosper Loan Funded

Once you have been assigned a Prosper Rating you can create your loan listing. You'll select the amount of the loan you're seeking between $2,000 and $25,000.  You will also select the term of the loan, 1, 3, or 5 years.

You will also be able to write a description of your reasons for the loan, financial information, and any other items that will make you potential loan appealing to lenders browsing the listings.

The lenders will be able to see all of this information plus relevant data from your credit reports.  Don't worry, all of your personal information is removed leaving only anonymous financial information.  In fact the whole process is anonymous, real names and financial information is never revealed to borrowers or lenders on the website.  Prosper loans handles the transaction and personal data.

Below is a screenshot of what a lender will see when they are looking at a listing.

Get Your Loan Funded at Prosper.

I've Got Funding, What Happens Next?

Now your loan will go into review by Prosper. They may request a variety of documents to verify your identity, address, and income.  This protects the lenders and Prosper loans from handing out money to people who aren't who they say they are. You'll have 7 days to provide the requested documents.

Once everything is checked and approved the money will be automatically deposited into your bank account.  This usually takes up to 3 days.  The amount will be your funded loan amount minus Proper's loan origination fee.  The fee depends on your score which I have listed below.

One month after you receive your loan you will start your payments.  Each month your bank account will be debited the agreed payment amount until the loan paid back.

Prosper Loans Peer to Peer Loan Details

Loan amounts: $2,000 - $25,000

Borrower Interest Rates: 7.43% - 35.84% APR

Borrower Loan Terms - 1/3/5 Years

Prosper Fees:

Rating AA - 0.5%

Rating A or B - 3.0%

Rating C to HR - 4.5%

Prosper Loans Review Overall: My borrowing experience with Prosper was a good one.  I was able to take out a $2,500 loan at a good rate. I also found that Prosper was easier to deal with and worked much quicker than banks I had dealt with in the past. > Visit Prosper Loans <

Looking to lend money instead?  Visit Prosper to Learn More.

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