Is Prosper a scam?- Get The Answers In My Review!

Is Prosper A Scam?

Is Prosper a Scam? Get the Answer in my review

Welcome to my Prosper review!

There has been a lot of noise about Prosper. Some say it’s legit while others call it as a scam. You must have heard about this opportunity from a blog or got some information on the social media about this company.


The company claims that it connects the borrower to the investors and offers a fixed rate loan up to $35,000 for the applicant that qualifies. But is this company real? Or is Prosper another scam that won’t deliver what they promise at the end of the day?


Because of a lot of requests and the noise surrounding this company, I have decided to do a thorough research to know what they will offer you.


So let’s get right to it!


Prosper Review: A Quick Overview

Name: ProsperIs prosper a scam? Get the answer in my review!

Owners: Ron Suber & Aaron Vermut


Fees: Est. Apr 7.98- 35.99%

Summary: Yes, Prosper is very clean and legit. It’s not just legitimate, but offers loans with a great interest rate that suits anyone needs. No prepayment fee, joint loan option and you can change your payment date. However, the major downside is that your application is expired if your loan request isn’t at least 70% funded within 14 days.

Overall Rank: 6.3 Out of 10

Recommended: Yes, but Be aware of their Fees

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What Is Prosper All About?

Prosper is one of the online loan services that is gaining popularity today, especially when it’s coming from a lender that offers you a very low-interest-rate compared to the higher interest rate of the most financial institution.


Prosper is a pioneer in U.S. peer-to-peer lending and it allows investors to offer loans directly to borrowers and earn an interest rate on these loans.


The company was founded on March 22, 2006, by Ron Suber out of San Francisco, CA   U.S.A. and it has been one of the leaders of the peer-to-peer lending market. The firm now has over 1.6 million members and over $400,000,000 in funded loans.


They are no different than other online loan services such as Lending Club, Fundbox and Zippy Loans and others.


The Prosper website domain ”” was initially registered on April 26, 1996, and the registration was last updated on August 11, 2016.


Here’s a short Video on Prosper

Prosper had shut down in 2009 to go through the SEC filing process and re-opened on July 1, 2009, after SEC registration.


Prosper has an A+ rating with the Better Business Bureau. BBB ranks companies on an F to A+ scale; so Prosper’s rank is an excellent rating. Receiving an A+ from the Better Business Bureau is a sign of a very trustworthy company.

See BBB Rating Here


Note: Prosper is NOT a member of FDIC – it is not a bank. All Prosper personal loans are unsecured, fully amortized personal loans.


What Types Of Loan Prosper Offer?

Prosper offers a wide range of loan.

Loan types include:

  • Debt Consolidation Loans
  • Home Improvement Loan
  • Short Term & Bridge Loans
  • Auto & Vehicle Loans
  • Small Business Loans
  • Baby & Adoption Loans
  • Engagement Ring Financing
  • Wedding Loans
  • Friends & Family LoansGreen Loans
  • Military Loans


If you are desperately in need of money in the future and don’t want to go through the long process of banks. Prosper is here to help you out as long as it’s not beyond $35,000.


The Qualification Process

You’ll have to go through 3 steps to get a loan.

Check Your Rate

You’ll want to check your rate to see if you’re eligible for the lowest rates possible. Rates range from 5.99-35.99% APR. You will be required to enter your zip code, the amount you need, the purpose of the loan, create your account.


They will also need your personal details to proceed with the qualification process which includes your home address, date of birth, Email address, your yearly Income.


You will have to agree to their terms and conditions and the other disclosure agreement.
Once you click on “View Your Offer,” it will process your information and determine whether or not you qualify for a loan.


Choose your loan

You’ll want to select your amount and repayment terms usually between 3 and 5 years, but you can pay it off anytime without penalty.


Get your funds

Your money goes straight to your bank account via direct deposit and you’ll get it within a few business days. On average, it usually takes three to five days for the transaction to complete.


Am I qualified For The Prosper Loan?

You are not entitled to this loan if you have a FICO credit that is below 640, but higher credit score is also not an automatic qualification. You must have a minimum two years credit history, but the average is 11 years.


They must also be sure that you have a consistent job or wages for you to be considered at all for the loan. You don’t need report your minimum annual income, but the average is $89,000.


This means that your FICO score must be good and you must have a job that is actually earning you money to fund the loan.


One good this about Prosper is that you can apply for a loan with someone who has an excellent credit. This would help you getting a loan easier or get a lower interest rate.


The credit score

This is obtained from an official credit reporting agency and new prospective borrowers are required to have a FICO  credit score of at least 640, but the range is 717. For returning borrowers only need a score of 600 to request a loan.


The Prosper Score

This is “Prosper Rating” for prospective borrowers based on the company’s estimation of that borrower’s “estimated loss rate.” Prosper Ratings, from lowest-risk to highest-risk, are labeled AA, A, B, C, D, E, and HR (“High Risk”).


Here’s a Screenshot of their rating

Prosper rating for accessing consumers credit risks


I will advise you to estimate. It is important for the ideal amount you need and how fast you will be able to pay the money back will always help you to make the right decisions for the healthy financial habit.


What I Liked About Prosper

  • The lending process of Prosper is very clean and it’s legit.
  • Their method of application is very easy.
  • The company has a good rating from Better Business Bureau (BBB).
  • Their interests are very low and they also have some fixed rate that is the same.
  • They also offer you the opportunity of paying the loan on time to reduce the interest.


What I Don’t Like About Prosper

  • Some loan application are denied. This is the main complaints borrowers have with them.
  • They have ton of complaints (202 customers complaints on BBB alone)
  • The loan is not available in some states.


Here’re Some Tips for Choosing a Loan

Do a Plenty of Research

Before you sign up with any online loan services or apply for a loan, make sure you are doing your homework. First, you have to find out what kinds of loan service you need, how it works, what kind of fees you need to pay and more.


Read their Terms and Conditions throughly. If you have any question, you will want to call them and ask them how their service work. Read other customers review (both negative and positive) and complaints and see how they treat their clients.


Get Recommendation from Family and Friend

Ask for recommendation and suggestion from fiend and family who turn to for online loan service. This way, you can find a trustworthy lender.


Research and Compare the Options

Before you make a decision which online loan services you are going to apply for a loan, you will want to explore and compare loan option services. Call or visit their website to see if the service is fits your need. If you have any questions, don’t hesitate to ask the questions.


During your research, you will want to create a comparison chart and write down the pros and cons of each of the service provider. This is the best way you can make a sound decision.


Here Is What I Really Think

Prosper is not a scam and it’s a network that offers people loan at a very good interest rate. This might just be the network that you will need to pay for your debt and every other expense at a very attractive interest rate.


If you want a loan that is not more than $35,000 with a very low-interest rate, then Prosper will be the right choice for you. Keep in mind that you are only qualified for the loan if you have a good FICO score and have a good Prosper rating score.


Do you happen to have any previous experience with this company that you would like to share with everyone else here today? If you do so, tell me all about it in the comment box below!


Thanks for reading.

All the best!


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Prosper at a Glane

Name: Prosper

Owners: Ron Suber & Aaron Vermut


Fees: Est. Apr 7.98- 35.99

Overall Scam Rank: 6.3 Out of 10

Verdict: Legitimate, Be Aware of their Fees


Est. Apr 7.98-35.99





Overall Quality



  • Prosper is very Clean and Legit
  • Joint Loan option
  • Good Rating on BBB


  • Charged Origination Fee
  • Tons of Complaints
  • Some Loans are Denied

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