Prosper at a Glance
Prosper is a peer-to-peer lending marketplace based in San Francisco, California. Borrowers can apply through the Prosper platform for fixed-rate, fixed-term loans. Then investors can invest in the aforementioned loans and receive monthly returns. Since its founding in 2005, Prosper has helped more than 1 million borrowers raise over $18 billion in loans.
Prosper Pros Explained
User interface. Prosper’s platform is intuitive and user-friendly. Applying for a loan is simple and can be done in minutes.
Co-applicants. Prosper allows you to apply with another applicant, which can increase your chance of approval and help you get a lower interest rate.
Soft-credit pulls. Prosper enables applicants to pre-qualify for financing without hurting their credit score.
No prepayment penalty. Prosper’s loans do not have prepayment penalties, so borrowers can pay off their loans earlier without incurring a fee or refinance at a later date if they wish.
Multi-purpose. If you’re not leveraging Prosper’s lending program for RV financing, you have a lengthy list of permitted uses, including debt consolidation and home improvement.
Prosper Cons Explained
Loan amount. If you’re hoping to rely on Prosper to finance an RV, you might not be able to secure enough funds. Compared to other RV financing options, Prosper’s maximum loan amount of $40,000 falls well below the price range of higher-end motorhomes.
Fees. Prosper charges closing fees that vary in size depending on your loan amount, term, and Prosper’s assessment of your credit rating. These fees are calculated as a percentage of your loan amount, ranging from 1.95% to 4.95% for three and five-year loans. Prosper also charges late fees, which are the greater of $15 and 5% of your monthly payment if your payment is more than 15 days past due.
Term lengths. While three to five years is common for a personal loan from a digital lender, Prosper’s term lengths are restrictive if you’re using loan proceeds to purchase an RV. With RV-specific lenders, you can find loans with terms up to 20 years.
Approval doesn’t guarantee funding. As a peer-to-peer lending network, Prosper’s platform connects you with investors, who ultimately fund your loan. If your loan isn’t at least 70% funded in 14 days, your application will expire, and you’ll have to apply again.
Who Is Prosper Best For?
Prosper is best for people who (1) want to apply for a joint-loan, (2) prefer a shorter loan term of three to five years, and (3) have fair to good credit (640 credit score and above). For individuals seeking RV financing, Prosper is a good option if your purchase is less than $40,000.
What Type of Loans Does Prosper Offer?
Prosper offers a variety of loan types, including:
- Debt Consolidation Loans
- Home Improvement Loans
- Health Care Financing
- Short Term & Bridge Loans
- Auto & Vehicle Loans
- Small Business Loans
- Baby & Adoption Loans
- Engagement Ring Financing
- Special Occasion Loans
- Green Loans
- Military Loans
What Are Prosper’s Credit Score Requirements?
Prosper maintains a minimum credit score requirement of 640 to qualify for financing. That said, as of November 2020, the average Prosper borrower has a FICO score of 727.
What Kind of APR Can You Expect?
Several factors contribute to your APR, including your credit score, loan term, and borrowing history with Prosper. Prosper assigns a “Prosper Rating” to every loan, which is their version of a credit rating. The idea is to simplify and categorize credit profile evaluations.
According to Prosper’s site, APR ranges from 5.99% to 35.97%. Note that the following chart is subject to change.
| Prosper Rating | Loan Term (yrs) | # Previous Prosper Loans | Interest Rate Min | Interest Rate Max | APR Min | APR Max |
| AA | 3 | 0 | 5.32% | 7.36% | 5.99% | 8.73% |
| AA | 5 | 0 | 7.36% | 7.36% | 8.65% | 8.65% |
| AA | 3 | 1+ | 5.32% | 7.36% | 5.99% | 8.73% |
| A | 3 | 0 | 7.49% | 10.43% | 10.28% | 13.27% |
| A | 5 | 0 | 7.49% | 10.43% | 9.68% | 12.68% |
| A | 3 | 1+ | 7.49% | 10.43% | 10.28% | 13.27% |
| A | 5 | 1+ | 7.74% | 10.43% | 9.93% | 12.68% |
| B | 3 | 0 | 10.76% | 13.46% | 14.34% | 17.10% |
| B | 5 | 0 | 10.76% | 13.46% | 13.02% | 15.78% |
| B | 3 | 1+ | 10.76% | 13.46% | 14.34% | 17.10% |
| B | 5 | 1+ | 10.76% | 13.46% | 13.02% | 15.78% |
| C | 3 | 0 | 13.99% | 21.80% | 17.64% | 25.63% |
| C | 5 | 0 | 13.99% | 17.97% | 16.32% | 20.39% |
| C | 3 | 1+ | 13.99% | 21.80% | 17.64% | 25.63% |
| C | 5 | 1+ | 13.99% | 17.97% | 16.32% | 20.39% |
| D | 3 | 0 | 18.80% | 26.15% | 22.56% | 30.08% |
| D | 5 | 0 | 18.80% | 22.48% | 21.24% | 25.02% |
| D | 3 | 1+ | 18.80% | 26.15% | 22.56% | 30.08% |
| D | 5 | 1+ | 18.80% | 22.48% | 21.24% | 25.02% |
| E | 3 | 0 | 23.44% | 30.70% | 27.30% | 34.74% |
| E | 5 | 0 | 23.44% | 27.04% | 26.00% | 29.70% |
| E | 3 | 1+ | 23.44% | 30.70% | 27.30% | 34.74% |
| E | 5 | 1+ | 23.44% | 27.04% | 26.00% | 29.70% |
| HR | 3 | 0 | 27.75% | 31.90% | 31.72% | 35.97% |
| HR | 3 | 1+ | 27.75% | 31.90% | 31.72% | 35.97% |
| Prosper Rating | Estimated Avg. Annual Loss Rate |
| AA | 0.00-1.99% |
| A | 2.00–3.99% |
| B | 4.00–5.99% |
| C | 6.00–8.99% |
| D | 9.00–11.99% |
| E | 12.00–14.99% |
| HR | ≥ 15.00% |
Other Financial Products Offered
Prosper is a peer-to-peer lending marketplace, so institutions and individuals can use the platform to invest in consumer personal loans and receive monthly returns. You can invest in individual loans or use Prosper’s Auto Invest tool, which pairs you with investments based on your preferences. Users can browse loan listings, which show credit ratings, loan category, loan amount, yield, percent funded, and time remaining until funding closes.
Prosper assigns a Prosper rating (i.e. a credit rating) to every loan. These ratings indicate expected loss rates, which are estimated based on the historical performance of similar past Prosper loans and credit scores.
Prosper also offers home equity lines of credit (HELOC) to borrowers in Alabama, Arizona, Colorado, Florida, New Mexico, and Texas. A HELOC functions like a credit card, but it’s secured by the equity in your house, so you can often get a lower APR.
Excluding promotions, Prosper’s HELOC variable APR rates range from 3.99%-10.35%, which includes a 1.00% discount with autopay.
Customer Service Experience
Prosper has a Help Center page on its website dedicated to answering questions about its products. That said, their website lacks a chat feature (not even an automated chatbot), so customer service requests must be submitted via a contact form. In other words, you’ll have to wait for a response to your question.
Prosper has been an accredited business with the Better Business Bureau (BBB) since 2012 and has an A+ rating as of today. To date, 118 complaints have been filed against Prosper in the last three years. According to the BBB Customer Review page, Prosper.com has a 1.3-star rating on a 5-star scale based on 47 reviews. However, it’s worth noting that these numbers pale in comparison to the total loans issued by Prosper, which exceed 1 million.
On the other hand, Prosper has a 4.5-star rating on Trustpilot.com based on 4,783 reviews. Prosper also has an active blog that provides relevant content that can help prospective applicants make informed decisions.
How to Bank With Prosper
Prosper has an intuitive application process that you can initiate from their website’s home page. Once you click “Check Your Rate,” you’ll answer questions about your loan request, including:
- How much would you like to borrow?
- How do you plan on using your debt?
- Are you applying by yourself or with a co-signer?
After that, you’ll answer a few personal questions related to contact information and your annual income. Then Prosper will present you with potential loan rates and terms. Upon agreement and sufficient investor funding, you’ll receive your loan via direct deposit. All personal loans are issued by WebBank, which is an FDIC member.
| Lender | Prosper | SoFi | Upgrade |
| Loan Range | $2,000 – $40,000 | $5,000 – $100,000 | $1,000 – $50,000 |
| Loan Term | 3 – 5 years | 2 – 7 years | 3 – 5 years |
| APR Range | 5.99% – 35.97% | 5.99% – 20.25% (with autopay) | 7.99% – 35.97% |
| Credit Score Minimum | 640 | 680 | Unpublished |
Peer Comparisons
It’s helpful to assess Prosper’s loan terms against other personal loan lenders and other RV lenders (assuming you’re in the market for an RV).
Personal loan lenders
Prosper’s APR is competitive with other personal loan lenders; however, you can find more flexible term lengths and higher loan amounts elsewhere. The following table compares Prosper to two other personal loan lenders: SoFi and Upgrade.
RV loan lenders
Relative to RV lenders, Prosper’s lending program is competitive if your credit score is high enough and your loan request is no more than $40,000. However, going with an RV lender might get you a better rate and more term flexibility. To give you an example, for loan requests between $25,000 and $50,000, GreatRVLoan offers an APR of 5.49% and terms of 5 – 15 years to qualifying applicants.
Lender Terms
All loans are fully amortized with fixed terms of three or five years. Prosper loans do not have prepayment penalties, so you could refinance later on at a lower rate if your credit profile improves or market rates decline.
| Prosper Rating | 3 year | 5 year |
| AA | 1.95% | 4.95% |
| A | 3.95% | 4.95% |
| B | 4.95% | 4.95% |
| C – HR | 4.95% | 4.95% |
Prosper Eligibility Requirements
Prosper requires a minimum credit score of 640, but the average score for Prosper borrowers is 727.
While Prosper does not have a set minimum income requirement, the weighted average annual income of Prosper borrowers was $105,000 as of November 2020.
Prosper’s maximum debt-to-income ratio (DTI) is 50%, but the average borrower’s DTI was 18.05% as of November 2020.
Prosper only lends in amounts between $2,000 and $40,000. So, if your RV financing needs are above this range, you’ll need to look elsewhere. Prosper requires a minimum credit history of two years. You will be deemed ineligible if you filed for bankruptcy in the last 12 months or have more than 5 hard credit inquiries on your credit report in the last six months. You must be at least 18 years old, have a social security number, and have a US bank account.
How to Apply
You can apply right from the home page of Prosper’s website. Keep in mind, if you’re applying with another person, you’ll need their personal and financial information on hand.
Verdict
Prosper offers personal loans for a wide variety of situations, but, if you’re looking for a personal loan for RV financing, you’re somewhat limited by loan size and term. At the very least, it’s worth applying to check your eligibility and rates. Prosper’s application process is quick and easy – plus it doesn’t hurt your credit score.
