Prosper Debt Consolidation has funded over $5 billion in personal and consolidation loans to more than 250,000 customers. Prosper offers a free consultation to potential customers who would like to see if Prosper’s services are a good fit for their circumstances. However, Prosper is lacking a great deal of transparency on their website.
- Free consultation
- Easy online applications
Prosper offers an easy online application for potential clients to fill out and quickly see the cost of consolidation. This easy online form can give you answers to questions you may have in minutes. Additionally, users can call to speak with a counselor for a free debt consultation. This consultation can be used to find what program, if any, will fit the needs of your circumstances.
- Lack of transparency
- High interest rates 6.73-35.36 percent
- No accreditations
Lack of Transparency
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 percent) seem to be higher than most of the competition. Prosper’s upfront and monthly fees are undisclosed, 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. Accreditations show a commitment to business best practices and guarantee a certain level of quality in services rendered.
Rates range from 6.73 percent to 35.36 percent 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 percent of the loan amount if the duration is three years. For five year loans, the cost is 4.95 percent 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.
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.
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
12 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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