Prosper Personal Loan Review: Debt Consolidation and Medical Financing for Good Credit

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Prosper Personal Loan Review: Debt Consolidation and Medical Financing for Good Credit

A Prosper personal loan is a good choice for creditworthy borrowers looking to consolidate debt or finance a medical procedure. The company partners with medical providers across the country to provide financing for a variety of procedures.

Good for

  • Borrowers with good to excellent credit
  • Debt consolidation
  • Healthcare/medical procedure financing

Bad for

  • Payment flexibility
  • Joint applications

Editor's Rating


Get Personal Loan Rates

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If you have good to excellent credit, Prosper is a good choice for a debt consolidation loan or a medical financing loan. With this lender, you can borrow up to $40,000 for a standard personal loan or medical financing. One downside to using Prosper is that the lender is a peer to peer lender (sometimes called a marketplace lender) so it will take a little bit longer to receive funds.

Prosper Personal Loan Review: Should You Apply?

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A Prosper personal loan is a good choice for creditworthy borrowers looking to consolidate debt or finance a medical procedure. Through Prosper, you can borrow up to $40,000 with rates between 6.95% and 35.99%. Since Prosper is a peer to peer lender, your loan offer will typically be funded within three to five business days instead of one or two.

Good for...Bad for...
  • Borrowers with good to excellent credit
  • Debt consolidation
  • Healthcare/medical procedure financing
  • Payment flexibility
  • Joint applications

Approximately 75% of borrowers use Prosper to consolidate or refinance existing debt. The remaining 25% of borrowers use their loan for home improvement, business funding, medical or healthcare financing or other purposes. On average, borrowers have credit scores around 700 and annual incomes of $80,000 and are in their mid-40s. This is much higher than the minimum requirements–Prosper only requires a minimum credit score of 640 and at least $1 in stated annual income (other requirements apply).

Prosper is also a convenient choice for medical financing, as the lender works directly with a variety of medical providers across the country. Through this program, you can apply for up to $35,000. They make medical financing available for procedures such as facelift surgeries and tummy tucks or infertility treatments for men and women. Depending on what type of procedure you're getting and your credit score, you may be able to qualify for 0% interest. Because Prosper's platforms can be integrated into the your provider's office systems, you may even be able to apply for medical financing at your doctor's or dentist's office. Examples of providers Prosper has worked with include the CRC Health Group and Apollo Endosurgery.

The lender also offers a free personal finance mobile app, Prosper Daily, to help borrowers better manage their spending. Through the app, you can connect your credit card accounts, track your spending, view your credit score and flag any suspicious or fraudulent charges. The app can help you set budgets, track your monthly spending relative to the previous month and identify recurring subscriptions you pay. You don’t need to take out a loan through Prosper to use the app.

Eligibility Criteria

To qualify for a Prosper personal loan, we recommend that borrowers meet the following criteria:

  • Credit score of 640 or higher
  • Debt-to-income ratio under 50%
  • Income greater than $0
  • No bankruptcies in last 12 months
  • Fewer than 7 credit inquiries in last 6 months
  • At least 3 open trades on credit report

Prosper will evaluate your credit history, your application information, planned use of funds and your ability to repay when approving you for a loan offer.

Prosper Personal Loan Terms and Requirements

Prosper offers unsecured personal loans for debt consolidation, medical financing, home improvement and a variety of other needs.

Loan Amount Range$2,000 - $40,000
APR Range6.95% - 35.99%
  • Origination fee: 2.4% - 5%
  • Late payment fee: Greater of 5% of monthly past due or $15
  • NSF/returned payment fee: $15
  • Lesser of 5% of payment or $5
  • No prepayment penalty
Loan Terms3 or 5 years
Repayment OptionsMonthly
Direct Payment to CreditorsNo

Application Process

To check your rate online, you’ll need to provide Prosper with information on your loan (i.e., loan amount and purpose), your credit score, your address, your income and date of birth. You’ll also be required to create an account with Prosper. Once you’ve completed these steps, you’ll be able to see a variety of loan offers.

Application ProcessOnline
Time to Get Funds3+ days
Credit Check
  • Soft credit check to get rate
  • Hard credit check when you apply
Credit ReportingYes
Cosigners/Co-borrowers Allowed?No

If you select a loan offer, you’ll need to provide additional information and documentation to verify your income and identity. Prosper will put your loan offer on its investing platform, where investors will have 14 days to fund your loan offer. If your loan is not funded within that time, you can create a new loan listing. Once the loan is funded, Prosper will conduct a hard credit check and disburse the funds to you.

Prosper Application Process screenshot
Prosper Application Process

How Does Prosper Compare to Other Lenders?

If you’re looking for a personal loan, it doesn’t hurt to shop around and check your rates at multiple lenders. Below, we compare Prosper to some of the other personal loan companies on the market.

Prosper vs. LendingClub

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LendingClub offers similar terms to Prosper, but it’s a better choice if you can’t quite meet Prosper’s requirements or want a cosigner. You can borrow up to $40,000 through LendingClub with the same rates and loan terms as Prosper. However, you’ll only need a minimum credit score of 600 to apply, and LendingClub allows you to add a cosigner to your loan application. Because LendingClub is also a marketplace lender, it can take up to seven days to fund your loan.

Prosper vs. SoFi

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Where SoFi wins out over Prosper is its higher loan amounts and lower maximum interest rates. However, you will need to have good to excellent credit to qualify for a SoFi loan. You can borrow up to $100,000 with rates between 5.99% and 18.82% for up to seven years. Like Prosper, it will take a few days to receive your funds. SoFi also offers career services and networking events for its members, which provides an extra network and community of support that certain borrowers may find appealing.

Prosper vs. Best Egg

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Best Egg also has similar terms to those at Prosper. In general, you’ll need a credit score of 640 or more to qualify, and you can borrow up to $35,000 with rates between 5.99% to 29.99% and terms of three to five years. Unlike Prosper, you can receive your funds within one day if you are approved for a Best Egg loan. It may be helpful to check your rate at both Prosper and Best Egg to see where you can receive the best deal.

Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.