Prosper is one of the original peer-to-peer lending platforms, founded in 2005. It accepts borrowers with credit scores as low as 560 — lower than most mainstream lenders — and offers loan amounts from $2,000 to $50,000. For borrowers with fair or poor credit who need more than a few thousand dollars, Prosper is one of the few options available.
Before accepting any loan offer, calculate the total cost of the loan (principal + all interest + fees). A lower monthly payment often means paying thousands more over the life of the loan.
The peer-to-peer model means your loan is funded by individual and institutional investors rather than a bank. This can result in slightly longer funding times (3–5 days vs. 1–2 days at some competitors), but it also means Prosper can serve borrowers that traditional banks would decline.
Prosper Personal Loan
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Rates, Fees & Key Terms
Upstart| Feature | Details |
|---|---|
| APR Range | 8.99% – 35.99% |
| Loan Amount | $2,000 – $50,000 |
| Loan Terms | 24, 36, 48, or 60 months |
| Origination Fee | 1% – 9.99% |
| Late Payment Fee | $15 or 5% of payment (whichever is greater) |
| Prepayment Penalty | None |
| Minimum Credit Score | 560 |
| Funding Speed | 3–5 business days |
| Joint Applications | No |
✓ Pros
- Accepts credit scores as low as 560
- Loan amounts up to $50,000
- No prepayment penalty
- Soft pull to check rate
- Established platform with $25B+ funded
- Transparent rate check process
✗ Cons
- Origination fee of 1%–9.99% adds to total cost
- Funding takes 3–5 days — slower than some competitors
- No joint applications
- Not available in all states (Iowa, Maine, North Dakota, West Virginia excluded)
- Higher rates for lower credit scores (up to 35.99%)
Prosper — Check Your Rate Today
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A personal loan is not the right tool for every situation. Consider alternatives if any of the following apply to you:
- You have home equity: A HELOC typically offers rates 5–10% lower than personal loans. If you own your home, compare HELOC rates before taking a personal loan.
- Your debt is primarily credit card debt: A balance transfer card with a 0% intro APR (typically 12–21 months) will cost less than a personal loan if you can pay off the balance within the intro period.
- You need less than $1,000: Most personal loan lenders have minimum amounts of $1,000–$2,000. For smaller needs, a credit union payday alternative loan (PAL) or a 0% APR credit card may be more appropriate.
- Your credit score is below 500: Most personal loan lenders — including those that accept "bad credit" — have practical minimums around 500–560. Below this, secured loans, credit-builder loans, or co-signer arrangements are more realistic options.
- You are in active bankruptcy: Personal loan lenders will decline applicants in active Chapter 7 or Chapter 13 proceedings. Resolve your bankruptcy first.
Frequently Asked Questions
What credit score do you need for a Prosper personal loan?
How does Prosper's peer-to-peer lending work?
Does Prosper charge an origination fee?
How fast does Prosper fund loans?
Is Prosper a legitimate lender?