Prosper has funded over $5 billion in personal and consolidation loans to more than 250,000 customers. A relatively new entrant to this space, the company carries an A+ rating with the BBB but also charges heftier upfront and monthly fees than many competing consolidation companies.
Prosper offers an easy online application for potential clients to fill out and quickly see the cost of consolidation.. Additionally, users can call in to speak with a real person for a free debt consultation, which is fairly standard for the industry. The company’s A+ rating with the BBB is an indication that it takes customer complaints seriously and work to resolve them.
- Free consultation
- Easy online applications
- A+ rating with the BBB
Most of the drawbacks with Prosper arise because it is a personal loan company first, and a debt consolidation company second. Interest rates (7% to 36%) seem to be higher than most of the competition. Prosper charges between 2-5% of the loan as an upfront fee, whereas most of the industry charges a flat rate between $30-$70. Those with a large amount of credit card debt will pay a high cost to work with Prosper.
Finally, the company’s expertise lies in getting loans approved, rather than debt counseling. Prosper does not have any industry accreditations or certified debt counselors on staff, and it doesn’t provide any sort of ongoing credit and debt counseling as part of their programs, just cash.
- High upfront fees 1.95-4.95%
- High interest rates 6.73-35.36%
- No accreditations
- Only in business since 2006
Rates range from 6.73% to 35.36% APR. The interest rate you’re charged is based on a number of factors including, but not limited to, the following:
- Prosper Rating, which is an indicator of expected loss rates
- Loan term
- Economic environment
- Competitive environment
Late and failed payment fees are also possibilities, if borrowers aren’t able to keep their commitments. Prosper does not keep the late fees, they are passed on to the lender. A failed payment fee of $15 is charged if the borrow has a returned check, a failed bank draft, a failed automatic withdrawal, etc.
Fees vary between 1.95-4.95% of the loan amount if the duration is 3 years. For 5 year loans, the cost is 4.95% across the board. Your percentage is based on the Prosper rating they will give you that basically shows how much you are trusted as a borrower.
Prosper has an A+ Better Business Bureau rating. They have resolved all theses complaints filed against them, which is a good sign that they are working to keep customers happy.
They offer a mobile friendly site that is easy to navigate and has a clean look.
Unsecured vs. Secured Loans
Prosper offers consolidation for unsecured loans.
Yes. Prosper can help you determine which, if any, loan solution will work for you.
There is no cancellation policy. Once you receive a loan from a prosper lender, you are obligated to pay it back in full.
Time in Business
10 years. Prosper opened it’s doors in 2005 and changed their business model in 2009, when they went to fixed rates based off of their algorithms.
Prosper Funding LLC
101 Second Street, 15th Floor
San Francisco, CA 94105
Unsecured debt consolidation is the main service they offer that is applicable to BestDebtCompanys.com. They do offer multiple other loan options including: home improvement loans, auto loans and more. You can find out more about them on their website.
There is no money-back guarantee with Prosper. Once you receive the consolidation loan, you have to pay back the entire balance.
Debt Education/Training & Tools
There is a blog about updates in the company, but no information specific to debt consolidation. The education side of Prosper is a little weak. We’d like to see them offering, in addition to their loans, a robust education program that helps individuals stay out of unnecessary debt.
Prosper allows their customers to login to their Prosper account and see the details of their loan. Customers can monitor their payments, balance, and see how many payments they have left on their loan.
Prosper does not have any certified financial advisors on staff.
Prosper is not ISO certified.
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