What Kind Of Reputation Does Prosper Bank Have
Reputation: Prosper is Americas first peer-to-peer lending company and has a reputation for being a trustworthy and dependable personal loan company. Best for: People looking to refinance debt, individuals starting a business, consumers facing financial hardship and those looking to finance a major life event.
Re: Prosper Loan Is Now Reporting
Just got back off vacation and hadn’t been paying attention. No, the loan reported as an installment, only they reported for two months and then stopped updating. In December I disputed the incorrect balance with TU. It just updated for December with a “Paid as Agreed” and reported the balance as 0 / Loan closed.
It still shows on the CR as a 36 month loan so it appears as if I paid it early. In reality I am still paying. I am OK with that reporting as it does not show up to affect DTI on any other credit I may look at in the future. I originally understood they did not report at all and was a little surprised when the late reporting showed up. It did drag down my AAoA slightly but that too will recover. And the paid installment loan can’t hurt.
Interesting though, when I went out to Prosper to check the balance I found out I can get multiple loans at the same time as long as the cumulative amount is not over $25K.
500’sEQ 701 TU 721 EX 715 760 ALL
Increasing Your Yearly Income
You might be able to get a lower interest rate at Prosper by increasing the amount of money you bring in each year. When you originally checked your rate at Prosper, maybe you only reported the money you bring in from your main job. Maybe you forgot to tell them about the extra money you make from pet-sitting your grandmas xoloitzcuintli or raking your neighbors leaves. Take a few minutes to look over your bank statements. If there are any deposits besides your paycheck, maybe thats some extra income you can include next time you check your rate. Hopefully your new interest rate will be lower!
Of course, the simplest way to get a higher yearly income is to actually increase your salary. So maybe this is a great month for you to launch that side business you have been putting off for years. Maybe it is time to go and get training in that money-making skill , and get a higher-paying job. Or maybe it is finally time to sit down with your boss and ask for that raise that you know you deserve but have been nervous to talk about. Any of these options will result in a higher yearly salary, and thus a lower possible rate on a loan from a company like Prosper.
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Prosper Personal Loan Rates Run High For Borrowers With Good Credit
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Logo for the personal loan lender Prosper
Prosper is one of the largest and best-known online personal loan lenders in the country. Catering to a wide range of borrowers, it offers loans up to $40,000 and a relatively low minimum APR. Even borrowers who don’t have perfect credit may find success with Prosper since it accepts borrowers with fair credit and allows those with lower scores to apply with a joint applicant. Prosper charges a wide range of interest rates, though, including a high maximum APR. So even borrowers with strong credit could get stuck with a disappointing APR.
- Product Specifications
- Recommended Minimum Credit Score640
- Loan Amounts$2,000 to $40,000
- Loan TermsThree or five years
Borrow two loans at once
Good credit doesn’t guarantee a lower rate
- Origination fee: 2.41% to 5.00% of loan amount
- Late payment fee: Not specified, but they are charged
- Failed payment fee: $15
Founded in 2005, Prosper has funded loans for more than 1 million people for debt consolidation, home improvement projects, engagement rings, adoption, and more. The loans that Prosper offers are funded by WebBank.
Logo for the personal loan lender Prosper
What Happens When You Default On Your Prosper Debt
- Kaylee Kolditz
Prosper was founded in 2005 as the original peer-to-peer lender in the United States. It matches personal loan borrowers with lenders, also called investors. While others have since joined the marketplace and Lending Club is now the largest online provider for personal loans in the U.S., Prosper does a substantial business. It has an A+ rating with the Better Business Bureau but has received 128 consumer complaints. Heres what happens when you default on your Prosper loan.
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Does Lending Club Show Up On Your Credit Report
Back in October, I took out a loan from “The Lending Club”. I did a little research, and I THOUGHT that it DOES NOT show up on your credit report. However, I just received a notification from “Credit Karma” that a new account posted onto my credit report. I went to My Fico, and got a new credit report, and its not showing up.
Does anyone have any experience with “Lending Club” and do you know if it shows up or not? Its been since October and I still don’t see it on there.
How To Apply For A Prosper Personal Loan
Applying for a personal loan typically involves prequalifying for a rate, submitting a formal application and awaiting loan approval. Follow these steps to apply for a Prosper personal loan:
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Evaluations From Respected Sources
These days you can find evaluations on just about any business on Yelp, including P2P lending platforms. I checked out Yelp San Francisco Prospers home town, and 17 reviews came up.
There was more of a consistent pattern to the complaints on Yelp than elsewhere. The most common is poor customer service/communication. There were also several reviews that gave the company a good rating.
But there were several that were at least a little bit unsettling. Several are from investors, and all were indicating that Lending Club is a superior investment platform to Prosper. Id be willing to bet that a similar set of reviews in regard to Lending Club might say the same thing in reverse.
In a formal review of Prosper as an investing platform, InvestorJunkie.com owner Larry Ludwig relates his hands-on experience with the site. He reports a similar advantage to Lending Club over Prosper from an investment standpoint:
Prosper loans are slightly riskier than Lending Club. This is based upon doing the number crunching I did on LendStats.com.
Since Larry is known for providing some of the deepest and most objective product reviews on the Internet, I take this observation seriously. Larry isnt dissing Prosper hes just pointing out that his experience and that verified with LendStats.com shows Lending Club to be the better of the two platforms from an investment standpoint, if only by a small margin.
Prosper Personal Loan Fees
Prosper charges four main fees:
- Origination fee: 2.41% to 5% of the loan amount, depending on your Prosper Rating and taken out of the loan funds before theyâre disbursed
- Late-payment fee: A late fee applies applies, but the amount is not revealed.
- Check processing fee: 5% of your payment or $5, whichever is less, when you send in your payment by check
- Insufficient funds fee: $15 for each payment that is unsuccessful
Like many lenders, Prosper does not charge a prepayment fee, so you can pay off your loan at any time without a penalty.
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Who Is Prosper Best For
Prosper is best for borrowers with fair credit scores who want to borrow a small amount of money. This is because loans start at just $2,000, and borrowers need a minimum credit score of just 600. Plus, while the companys maximum APR is high at almost 36%, the average between January and May 2021 was just 16.37%.
That said, APRs start at 7.95% and loans are only repayable over three or five years, so the most qualified applicants can likely get a more competitive rate and more flexible terms elsewhere. Prosper personal loans are not available in Iowa, West Virginia or U.S. Territories.
Prosper Personal Loans Application Process
To start the application process, youll need to submit your social security number and financial information. Youll likely also need to provide supporting documentation to confirm your income, such as recent pay stubs or a tax return.
Once youve been approved as a borrower, youll receive a Prosper rating, which lets investors know how risky your loan could be. But high risk doesnt mean you wont get funded since investors can earn a higher rate of return, many prefer to fund these personal loans. After that, your loan is listed on the marketplace.
Investors can commit as little as $25 or as much as your entire loan amount. Most who choose to invest pick an amount somewhere between the two. Many investors have their portfolios built automatically based on their preference of risk ratings, so they might not even read your listing specifically.
You can check your application status through your online account, where youll see what percentage of funds has been committed to date.
Youll also find a list of any missing documentation you need to submit. Then, once your loan hits 70% funding and your information has been verified, Prosper lets you move forward with receiving your funds.
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Become An Authorized User On A Credit Card
If you are added as an on someone else’s credit card, his or her history is typically reported to your credit report. Just make sure this person is responsible with the card and charges lightly and makes their payments on time. If they don’t, this will negatively affect your credit report and score.
You do not have to have access to this card but you should make sure the credit card reports the information to your credit report. Some cards will report authorized-user information only for spouses or family members.
Types Of Personal Loans Offered By Prosper
Prosper offers a variety of personal loans that can be used for almost any purpose, including:
- Medical expenses
- Debt consolidation
However, loan funds cannot be used to pay for post-secondary education.
While Prospers credit score requirements may be lower than some competitors, borrowers must meet other eligibility criteria to qualify for a loan. In addition to having a credit score of at least 640, a DTI ratio thats 50% or less, and an annual income thats greater than $0, borrowers need to meet these requirements:
- No bankruptcies filed within the last year
- A minimum of three accounts listed on your credit reports
- Fewer than five hard credit inquiries within the last six months
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Improving Your Credit Score
Your credit score is a really important thing to be aware of. With bad credit you can struggle to get ahead in life, like getting a higher interest rate when trying to get a loan to buy a home, or getting denied for a home loan altogether. In contrast, a good credit score makes you are more likely to get approved for loans, like at Prosper, and the interest rate they give you is more likely to be lower.
Heres how to increase your credit score:
- Print your credit report
- Carefully look through the report
- Pay back any debt that has gone bad
Downloading your credit report is really easy. AnnualCreditReport.com is the website most people will want to use, because it is the official website all three credit agencies use to give people free access to their credit history. Take an hour to visit the site, download your report, and look it over item by item. If you see a strange loan or strange credit card then you may be the victim of identity theft. This is unlikely to be the case, but it is a possibility. As quickly as possible you need to call the phone numbers on your credit report and get this issue fixed.
Take an hour or so and look through your credit history carefully. If you see an error on a line of credit that has gone bad, get it fixed or become current on your payments. Very likely your credit score will go up, and as a result Prosper could offer you a lower interest rate next time you check your rate on a loan.
Does Prosper Hurt Your Credit
Does prosper hurt your credit? Unlike some loans, checking your rate at Prosper wont affect your credit score. They just use a soft credit inquiry, which is visible to you but not other lenders.
What is the minimum credit score for a Prosper loan? Borrowers who accept a personal loan through must have a credit score of 640 or higher to qualify for a loan. If you dont qualify for a personal loan with Prosper, consider applying with a co-applicant. This could improve your chances of getting an offer. Plus, it might lower your rate.
Is Prosper safe for lenders? A: Prosper has an A+ rating with the Better Business Bureau and has been in business since 2005 as a lending marketplace that matches borrowers with investors. Prosper is a good lender if you have fair to excellent credit and need to borrow $2,000 to $40,000.
Does Prosper settle debt? While Prosper may negotiate a settlement, it is more likely that youll be able to negotiate with the debt buyer that acquires your account.
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Some Tips For Knowing The Data Background Knowledge
Before preceding to the next part, I want to introduce some tips about how to quickly understand the basic domain knowledge for a target data.
As an experienced investment banker, quickly understanding the basic domain knowledge and summarizing it are our major daily job. When we get start to know a brand new industry knowledge, its very useful to find the companys listed document, such as SEC filing. The most well-known listing document is called Annual Report. If the company of interest has not listed on stock market before, its also feasible to search the document of leading companies with the same industry which have been listed.
The following are the major sources to quickly get to know a new industry knowledge and history of a company/industry:
Is Prospers Marketplace Model Right For You
Peer-to-peer lending has opened up a lot of doors for borrowers and investors alike. But is it right for you? If youre looking for fast funding, then probably not. Investors have up to 14 days to commit funds to your loan application, so it can take that long before you see any cash.
However, if youre not in such a rush, a loan through Prosper could be a great option. It offers all the same perks as a traditional lender and could potentially even give you better personal loan rates than if you went to a regular bank.
Once your loan is listed on the Prosper marketplace, its essential to understand what investors see about you. While personally-identifying information like your name is withheld, they still see some basic information about your loan request.
On top of your Prosper rating, which indicates your creditworthiness, your listing also includes the intended purpose of the loan proceeds and your city and state.
While no one can figure out who you are, its something to be aware of to ensure its within your comfort zone. Investors can also see how much remaining funding is needed. This can help inform their own decision on how much to contribute.
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Loan Performance Prior To July 2009
As of August 2008, approximately 18.5% of all money loaned through Prosper from inception through June 2008 were in some form of delinquency. Also, more than 35% of all loans that originated in February 2007 were in some form of delinquency.
As of January 24, 2010, Prosper reported that 22.45% of all money lent since inception had been charged off and an additional 2.51% was delinquent but not yet charged off. Charge-off rates by credit score category ranged from 11.57% of money lent to borrowers with a credit score of 760 or higher to 44.30% of money lent to borrowers with a credit score below 600. Eric’s Credit Community reported generally consistent delinquency results, with a 24-month delinquency rate by credit grade for loans originated after January 1, 2006 ranging from 11.8% for ‘AA’ loans to 61.6% for ‘HR’ loans. The charge-off rates in many cases exceeded the interest received on the loan categories, resulting in a negative return. Erics reported that the median return to Prosper investors was negative 2.00% and the mean return negative 2.28.
After Prosper’s relaunch in July 2009, and implementing stricter credit guidelines for borrowers Prosper’s loan default rate has been significantly reduced. The percentage of all loans that are 6+ months old, and are 1+ month late, dropped to less than 4%. As of Aug 11, 2010, the 4 months that match these criteria are the lowest percentage of late payments Prosper has seen since inception.