Prosper personal loan is a pioneer for personal loans. It was launched in 2006 and is the first firm to enter the peer to peer lending arena. It offers loans to customers from fair to excellent credits. The customer must have minimum 640 credit score to qualify. They are an ideal lending club personal loan mediator that matches borrowers with potential lenders through their online platform.
How to apply:
With just one click you will get all the information about Prosper online. You will need to fill up some basic information such as how many loans you are looking for and why do you need the money. You are likely to get a reply within a minute or two. A ‘soft’ credit check will be conducted by them which will not affect your credit rating. Once you are approved, they will make a ‘hard’ inquiry. It will be done on your credit report. It can have an impact on your credit score. Prosper gives all loans letter grades, such as AA, A, B, C, D, E, and HR. As the letter increases the risk of the corresponding and the interest rate goes up. Origination fee comes down for those who have a better rating.
Fees and penalties:
Prosper demands origination fees which vary from 0.50% to 4.95% depending on the creditworthiness. A penalty of $15 will be charged if you ever have a low balance in your bank account. You will be charged late payment fee if you delay. The Late fee is 5% of the unpaid installment or $15, whichever is a greater amount. You can pay your loan early; you will not be penalized for that.
Who will not qualify for a loan:
You will not be given a personal loan if you have bad credit. Bad credit means if you have lesser than stellar-credit and you are quoted a double digit yearly percentage rate that is coupled with a steep origination fee. You then should opt for any other type of loan. You may apply either for a ‘balance transfer credit card’ or a ‘home equality loan.’