Prosper Review 2020: Consolidation Loan Opportunities Available

Low rates Best for
4 /5
$ 10.000 /mo
Starting Price
Visit Site
Table of Contents

    Terms, Fees and Rates 2020

    Minimum credit score: 640
    Rates APR: 7.95% to 35.99%
    Loan amounts min to max: $2,000 to $40,000
    Origination fee: Between 2.4% and 5% depending on your credit rating
    Terms:3-5 years
    Late payment fee: $15 or 5% for each monthly payment missed (whichever is greater)
    Prepayment penalty: None

    Pros and Cons


    • No prepayment fees
    • Terms of up to 5 years
    • Low APR for those with an excellent credit score


    • Origination fees
    • Minimum credit score will make a lot of people ineligible

    Why should you consolidate your loans with Prosper?

    • Terms of up to five years - There’s a wide range of financial predicaments that lead people to consider taking out a consolidation. Though, in most cases, it’ll be because people feel overwhelmed by the number and cost of their monthly payments. This is why terms are so important, and some competing businesses provide terms no longer than two years. A five-year option could really ease the pressure by significantly reducing monthly payments and spreading them over a long period.
    • No prepayment fees - Such charges come when the customer pays off a part or all of a loan early. If you have the good fortune to be able to do this, you could save a huge amount of money in interest payments. It’s great that Prosper doesn’t financially punish those who pay off debts ahead of schedule.
    • A potential of low APRs - For those with excellent credit scores, a reasonably low APR may be available. To access rates under 10%, those who apply will need a long history of both regular income, and paying bills in a timely manner.

    What are the eligibility requirements?

    • A credit rating of at least 640
    • A minimum of two years of credit history
    • Debt/income ratio must be 50% or less, not including mortgage payments
    • Less than five credit checks taken within the past 6 months
    • No bankruptcy applications made within the past 12 months

    How to apply for a Prosper consolidation loan? 

    There are three steps in order to apply online for a loan with Prosper.

    Step 1

    Enter your details - This will include criteria such as employment, living expenses, income, and overall debts

    Step 2

    For applicants that the provider determines to be eligible - select the loan terms you desire

    Step 3

    Wait for 3-5 days to receive your loan amount

    Customer Service

    • Call between 9 am and 8 pm from Monday to Friday
    • Email
    • Online help center

    What types of debt can be consolidated with Prosper?

    There are four types of consolidation loan available - 

    1. Personal loans
    2. Standard debt consolidation loans
    3. Home improvement loans
    4. Home equity line of credit (HELOC)

    Bottom line

    There’s no doubt that Prosper has some positive aspects worth considering when choosing a loan agent. The terms are extensive, and there aren’t any prepayment fees. Yet, the origination fees are exceedingly high, and the minimum credit score required simply won’t be realistic for a lot of people.

    If you’re not satisfied with Prosper as an option, consider applying with Upgrade. It offers APR as low as 5.99% and charges absolutely no origination fees. Avant would be another great choice. It offers great customer service and rapid funding, sometimes within an impressive two days.