Prosper Review

By Kevin Mercadante

Overview

Prosper is one of the leading online Peer-to-Peer (P2P) lending sources. They offer the ability to consolidate high interest debts into a single loan program. Prosper offers flexible terms, and fees and interest rates that are based on your credit profile. This will offer borrowers the opportunity to consolidate debt, without having to engage in a debt settlement program, and without needing to secure a new loan with their homes.

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Prosper began operations in 2005, as a way of providing more attractive interest rates for borrowers, and a higher return on investment for investors. Because it is a P2P lending facility, their loan underwriting can be more flexible than traditional banks.

Minimum amountsMaximum amountsFees
$2,000$35,000Origination Fees of 1% to 5% of
the loan amount

 

 

How it Works

You start by opening an account on the Prosper website. After that, you can create your loan listing, which will take only a few minutes. This will require you to provide certain personal information that will help to determine your rate and loan terms.

At that point, Prosper will confirm your identity and obtain a credit score. You will then be assigned a Prosper Rating, on which your actual loan rate will be based. Investors will be able to view your loan listing, and decide to fund your loan request.

Features

One of the advantages to working with Prosper is that you can check your loan rate without affecting your credit score. The loan inquiry with Prosper will be considered a “soft inquiry.”

All loans come with fixed rates, and are self amortizing, with terms of 3 to 5 years. Loan payments will be made by automatic withdrawals from your bank account, so you will not need to write monthly checks or even concern yourself with making a monthly payment. In addition, there are no prepayment penalties.

Accreditation

Prosper is accredited by TRUSTe. The company also has an A+ rating from the Better Business Bureau, which it has maintained since 2012. The company adheres to all federal lending laws and regulations, as well as those in place by the individual states in which the company operates. Prosper currently lends in 47 states - Iowa, Maine, and North Dakota are the exceptions.

Fees

Prosper charges both origination fees and interest rates on your loan. Both are determined by a combination of the term of the loan, as well as your credit rating as determined by Prosper.

Origination fees are between 1% and 5% of the loan amount, while interest rates can run with APRs of between 5.99% and 36.00%.

Quality of Service

As one of the best established online lending sources, Prosper has top-of-the-line customer service. You can contact the company by email, or by toll-free phone, Monday through Friday from 8 am to 9 pm, and on Saturday from 9 am to 5:30 pm, Eastern Time. Representatives are available to help you in applying for your loan, or with service questions relating to existing loans.

Address

Prosper Marketplace Inc.

P. O. Box 396081

San Francisco, CA 94139-6081

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  About Kevin Mercadante

 Kevin Mercadante is a freelance professional personal finance blogger,
 and the owner of his own personal finance blog, OutOfYourRut.com. He
 has extensive backgrounds in both accounting and the mortgage industry.
 Follow Kevin on Google+.

 

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