✅ WiseIQ Verdict

Prosper is a legitimate, licensed lender. They are registered with state financial regulators, use 256-bit SSL encryption, and are accredited with the Better Business Bureau. While they have some customer complaints (as most lenders do), there are no major fraud patterns or regulatory actions that would indicate a scam.

Trust Signals We Verified

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First P2P lending platform in the US (founded 2005)
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Issued through WebBank, Member FDIC
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BBB Accredited Business
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256-bit SSL encryption
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Regulated by SEC as a securities issuer
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Over $25 billion in loans originated

Things to Know Before Applying

  • Origination fee of 1% to 9.99% applies to all loans
  • Peer-to-peer model means funding is not guaranteed
  • APRs can reach 35.99% for lower credit profiles
  • Funding can take 1–3 business days (not same-day)

Prosper Loan Details

APR Range8.99% – 35.99%
Loan Amounts$2,000 – $50,000
Loan Terms2 – 5 years
Min. Credit Score560
Origination Fee1% – 9.99%
Time to Fund1 – 3 business days

Looking for a Strong Alternative?

Upstart is a strong alternative to Prosper, especially if you have a thin credit history or a score below 560. Upstart has no minimum credit score, offers loans up to $75,000 (vs Prosper's $50,000), and funds in 1 business day. Check your rate with no credit impact.

Check Upstart Rate — No Credit Impact →

Frequently Asked Questions

Is Prosper a legitimate lender? +
Yes. Prosper is the first peer-to-peer lending platform in the United States, founded in 2005. They have originated over $25 billion in loans and are regulated by the SEC.
How does Prosper's peer-to-peer model work? +
Instead of borrowing directly from a bank, Prosper connects borrowers with individual and institutional investors who fund the loans. WebBank issues the loan, and investors purchase the notes.
Is Prosper FDIC insured? +
Prosper loans are issued by WebBank, which is FDIC insured. However, the investment notes purchased by Prosper investors are not FDIC insured.
What is Prosper's origination fee? +
Prosper charges an origination fee of 1% to 9.99% based on your Prosper Rating (their internal credit grade). This fee is deducted from your loan before disbursement.
Does Prosper do a soft pull? +
Yes. Prosper performs a soft credit pull when you check your rate, which does not affect your credit score. A hard pull occurs only when you submit a full application.

Related Guides

Upstart Review 2026 → Upstart vs Prosper → Best Personal Loans 2026 → Personal Loans for Bad Credit →

WiseIQ may earn a referral fee from some lenders on this page. This does not influence our editorial ratings or recommendations. Our reviews are independently researched and editorially independent. Updated April 08, 2026.