A Prosper borrower is a person who is a U.S. resident in a state where Prosper loans are available, with a bank account, a social security number, and a credit score of at least 640. Borrowers must first be approved by Prosper's anti-fraud and identity verification systems before they can post a loan listing. Approved borrowers can request unsecured loans from $1,000 to $25,000 at rates they select.

Borrowers can request 3-year, fully amortized, unsecured borrower loans up to $25,000. In other words, you will have three years to pay off the loan in full with set monthly payments. You don't have to offer any collateral, like a car or your house, to guarantee the loan. There are no penalties for paying off your loan early or for making partial prepayments.

A borrower listing is your request for a borrower loan, displayed for lenders to bid on. Not all listings become loans. Some listings don't get enough bids, and some borrowers do not accept their loans because, for instance, they aren't happy with the final interest rate their listing was bid down to.

A loan is made after bidding is complete, after it passes any necessary review, and after you sign the promissory note.

When you create a borrower listing, you specify the maximum interest rate that you are willing to pay, and lenders can bid the interest rate down. While you're creating your listing, we'll help you pick the starting rate. The suggested starting rate is based on what other borrowers with similar credit histories have received in the past. It might seem a little high until its bid down; a high starting rate will attract more bidders.

Remember, if you don't like the interest rate on your listing, you can always withdraw your listing and create a new listing with more information, or decide not to turn your listing into a borrower loan.

There are no fees for posting a borrower listing on Prosper. Fees are only charged if you get a borrower loan.

3% closing fee
The closing fee is a percentage of the amount borrowed or $75 (whichever is greater). For loans of $1,000 to $2,550 to California borrowers, the maximum origination fee is $50.

The closing fee is taken from the loan immediately, before loan proceeds are transferred to your account. This means that if you're using your Prosper loan to purchase something specific (like a wedding dress), make sure you ask for enough to cover both the dress and the closing fee.

For example, if you take a loan for $5,000 you will be charged a $150 closing fee. You'd receive $4,850 in cash deposited into your bank account.

Special circumstances
$15 failed payment fee: A failed automated withdrawal, returned check or bank draft, results in a fee of $15. Only one failed payment fee will be charged per payment period. This can be due to insufficient funds, a closed account, account changes that were not reported to Prosper, or for any other reason (other than an error by us). This fee is retained by Prosper.

Late payment fee: If a monthly payment is 15 days late, you'll be charged a late fee. Late fees are passed on to lenders; Prosper does not retain late fees.

When you are confirming your listing, you will have two options for making your monthly payment. The first option is electronic funds transfer, which is free. The second option is bank draft, which will result in an interest rate increase of 1.00%. Rates shown on listing and bid pages assume that the borrower will choose to use the free electronic payment service and will receive a discount of 1.00% from the interest rate that the lender charges to borrowers who do not agree to electronic payments. Borrowers who choose not to use the free electronic payment service will not receive the 1.00% discount. We expect that most borrowers will choose the free electronic funds transfers which are secure and convenient.

If you select electronic funds transfer, Prosper will electronically deduct your monthly payment from your bank account on the due date. If you select bank draft as your method of payment, you are authorizing Prosper to write a check on a monthly basis on your behalf to cover your payment each month. This option has a fee because of the additional processing costs associated with it.

Note: If you choose the bank draft payment method, the additional interest will not be paid to lenders. It is a fee that will be paid to Prosper for processing bank draft payments. Do not choose bank draft as a method of offering higher interest to lenders.

Borrower auction listings run for 14 days to allow lenders to bid down the interest rate. It's possible to end the auction early. After a listing ends, Prosper may require additional documentation from you—a prompt response will speed up the process. If all requirements are met, you will typically receive loan proceeds within 4 to 8 business days of the end of a successful listing.

When you join Prosper, we send an email to the address you gave us. In that email is a "Verify my email address" link which you need to click.

If you haven't received the email, first try checking your "Spam" "Bulk" or "Junk" folders. You can request another verification email at any time by logging into your Prosper account, or you can change your email address in your profile.

For the safety and security of the marketplace, it is important that Prosper verifies that each member is 1) a real person, and 2) the same person they say they are. You will be required to provide your name, date of birth, Social Security number, address and telephone number. Based upon this and other data, Prosper will verify your identity.

There are some cases in which legitimate people do not pass the Prosper identity verification process. If this happens to you, there is a possibility that our information about your identity is erroneous, or you have a fraud alert on your credit report. We will contact you and may ask for physical documents proving your identity.

No. Prosper performs a "soft pull" with your permission for identity verification purposes. Only if you obtain a borrower loan will a credit inquiry be reported.

The Prosper Rating is a letter that corresponds to an estimated loss rate range, which potential lenders use to help decide whether to bid on your listing. Your Prosper Rating is determined by two scores: one obtained from a credit reporting agency and the other an in-house custom score built on the Prosper population. We obtain your credit report and credit score from Experian in order to assign a Prosper Rating. Your Prosper Rating can be affected by many factors, such as how much money you owe, how much credit you have available to you, your on-time payment history and the length of your credit history.Learn more about Prosper Ratings and estimated loss rates.

In addition to the Prosper Rating, your borrower listing will also show a credit score range based on your Experian Scorex PLUS^SM credit score.

The Prosper Rating is determined by your two credit scores: the Experian Scorex PLUS^SM score and an in-house custom score built on the Prosper population that uses information contained in your Experian credit report. The credit report score range is based on your Experian Scorex PLUS score. If you disagree with your Prosper Ratings or your credit report score range, make sure your Experian credit report is accurate. A free copy can be obtained once per year at www.annualcreditreport.com. View Prosper's policy on changes to borrower credit reports.

There are many different credit scores available from credit reporting agencies and no two scores are the same. These scoring models are algorithms that assess risk and are based on the information contained in credit reports. Scores differ because the information contained in credit reports is not consistent and because scores are built using different underlying populations. Prosper uses the Experian Scorex PLUS^SM credit score in addition to our own in-house custom score that was built on a population of Prosper borrowers using information contained in Experian credit reports.

Once you have set up your borrower account and passed Prosper's initial identity verification, you can create a borrower listing at any time. Create a Listing Now.

Your listing will include what you need the loan for, how much, your credit grade, and additional data from your credit report which helps lenders determine your likelihood of repaying your Prosper loan. A successful listing at Prosper is informative with an interest rate high enough to attract lender attention. A borrower with a lower Prosper Rating will probably need a higher interest rate to attract bids.

A good listing should answer the following questions in lenders' minds:

1. Do you repay your debts?
2. Will your budget let you meet your loan payments? Show this by listing your income and expenses, and don't forget about any increased expenses you face after you get the borrower loan.
3. Why do you want this loan?

Learn more about creating a successful listing with successful listing tips.

Auction: In an "Auction" format, your borrower listing is posted for 14 days. The more bids the listing gets, the lower your interest rate can go.

No auction: If you would rather get your money quickly and don't want to wait for lenders to bid during the full length of the listing, you can choose the "No auction" listing format, also known as an "automatic funding" listing. Automatic funding , listings are posted for 14 days or until your requested interest rate is met. Because the rate is not bid down, you might miss the opportunity to get the lowest possible rate. These listings are marked by a lightning bolt icon for lenders.

Bidding is a blind auction. Lenders choose the lowest interest rate they are willing to bid at, and if the borrower listing's bid rate drops below a lender's threshold, they are outbid and no longer a part of the auction. The more confidence a lender has that you will pay them back, the lower lenders are willing to go, and the lower your listing's interest rate might get.

Once a borrower listing is active, you can't make changes to it. You can, however, withdraw your listing (from My Account), and create a new listing with your changes. There is no fee for withdrawing your listing and creating a new one.

When someone who knows you personally trusts you to pay them back, it provides a measure of credibility to your borrower listing. You can invite your family and friends to bid on your borrower loan and your friend will be sent an email. If the person you invite is not a Prosper member, the email will provide a link to bid on your loan using a PayPal account or a credit card.

If your friend bids on your listing, that bid will appear on your listing page for other lenders to see. The friend will even get to write a recommendation for you when they bid. Other lenders will be able to see that recommendation.

When a lender views your borrower listing, they can ask you questions about it. You can answer the question for just that lender, or post the answer to your listing for all lenders to see. You will receive an email when a new question is asked, and can view questions in "My Account > Borrowing".

Your answers should be informative, and you should post them to your listing whenever possible—some lenders look for answered questions as a sign that a borrower is involved in their listing. If you answer a lender's question, please don't include personal information that can expose your identity such as name, business name, or specific location. Exposing your identity to a lender may put the lender in a legally precarious situation, and should be avoided at all costs.

There are various "featured listings" throughout the Prosper website. The following factors can improve the chances of appearing as a featured borrower listing:

1. A relatively high starting rate compared to your Prosper grade and borrower loan amount.
2. A photograph is included in the listing.
3. Bids from friends and family on the listing.

If your borrower listing runs out of time and has not yet received bids totaling the requested borrower loan amount, no loan will be made. If you want to try again, you can withdraw your listing in My Account and create a new listing at no charge.

Yes. If your borrower listing receives bids totaling the requested borrower loan amount and you are satisfied with the interest rate, you can end your listing early and receive the loan, after loan review. Note, however, that many lenders bid only after a listing is 100% funded with bids. If you end your listing, the interest rate can't drop further.

While your borrower listing is active, lenders can bid down your interest rate. After your listing ends, Prosper must complete the loan review process before Prosper can transfer loan proceeds to your account. Prosper has the right to verify at any time the accuracy of all statements and information you provided when you registered and posted your listing. Prosper may ask you to send in documentation or call your bank or employer for verification. If Prosper needs documentation from you, you should be contacted within one business day after your listing ends. The loan review process itself will last no longer than seven business days.

After any necessary verification is finished, you will be asked in an email to sign for and accept your loan. This is the last opportunity to change your mind before your loan is made, and loan proceeds are transferred to your bank account.

Loan review helps protect lenders by verifying some or all of the information you provided while registering and creating your borrower listing. The review period lasts up to seven days after bidding ends on a listing, and any requested documentation must be provided in that period.

If documentation is needed during loan review, you will receive an email from Prosper with specific instructions about the documents needed. The documents needed are different from borrower to borrower, so make sure you pay special attention to the email.

Follow the instructions in Prosper's email closely, and be sure to include a fax cover sheet from your email. If you do not use the printable fax cover sheet, it may delay the loan review. An email confirmation will be sent to you indicating that Prosper has received your fax.

If you are asked to provide proof of your income, the following documents can be used. Wage-earners (not self-employed) can provide a recent pay stub and Form W-2. Retired borrowers can provide a Social Security benefits letter, Form SSA-1099 or bank statements showing SSA direct deposits.

If Prosper does not receive the requested documents by the deadline indicated in our request, your borrower listing will be cancelled, you will not receive a borrower loan, and you may not be allowed to create a new listing. This may seem harsh but it's important to understand the process from the lenders' point of view. It's simply unfair to ask dozens (sometimes hundreds) of lenders to keep their money tied up when they could have bid on another listing with a more responsive borrower.

Therefore, it is crucial that you be as responsive as possible during the listing review process.

When loan review is completed, you will receive an email from Prosper indicating that your borrower loan is ready to be signed and loan proceeds transferred. Just click on the link in the email and sign the promissory note online, or visit My Account.

Please note that you must sign for your loan within seven days of being notified. If you do not sign for the loan within seven days, the loan will be cancelled and you will not receive any loan proceeds.

If you do not want to receive the loan for any reason, you may cancel it from the email or from the Prosper web site. Just click "Cancel loan", and the loan will be cancelled. Keep in mind that if you cancel your loan, you will not receive any loan proceeds.

Your borrower loan proceeds should be available to you one to two business days after you electronically sign for your loan. Prosper transfers your loan proceeds to you electronically using the ACH (Automated Clearing House) banking network.

If you sign for your loan before 3 PM Pacific Time on a business day, funds transfer begins that day. If you electronically sign for your loan after 3 PM Pacific Time or on a non-business day, the funds transfer is initiated the next business day. Funds usually become available in your bank account one business day after the transfer begins.

Interest on your borrower loan begins to accrue on the business day following the day Prosper initiates the funds transfer, which Prosper considers the funding date or loan date of your loan. Your first payment is due one month after your loan date. Your payment due date is the same day of the month as the loan date of the loan, or the closest possible day in future months where that date might not exist (for example, if your origination date was the 31st, your payment might be due on the 30th in months that are 30 days long).

It is possible to have more than one Prosper borrower loan; however, you must meet certain requirements. Also, all Prosper loans will be included in your $25,000 loan limit, which will affect the maximum amount you can request in your second loan.

• In all cases, your active loans must be current.
• A minimum number of months must have passed since your last loan was made.
• A minimum number of consecutive on-time payments must be made on your previous loan.
• Prosper will not use credit information which is more than 30 days old, so you will get a new Prosper Rating, credit score and credit data when you create a listing for a second loan.
• Your current credit score must not have dropped more than the allowed amount, listed below.
• If you have two loans, they will likely have two different payment dates (unless they happen to originate on the same day of the month), and will act independently regarding monthly payments and payment dates. Your loan payments cannot be combined.

Requirements by credit score range for second loans:

Note: Meeting all of the requirements listed above does not guarantee your second loan request will get funded.

Your borrower loan is set up for monthly payments to be automatically deducted from your bank account on file. Prosper will send you an email reminder one week before your payment is due.

If you want to make an early monthly payment on your loan, you can go to "My Account > Borrowing" and click "Make payment". From there, you can make your next monthly payment, or pay off the entire loan balance.

Anytime you make a loan payment, funds are applied to your loan balances in this order:

1. Pay down accrued late and failed payment fees
2. Pay down any accrued interest
3. Pay down the loan principal balance

Go to Accounts, click "Add a bank account", and follow the step-by-step process. As with all new bank accounts, you'll have to verify that you are the true account owner.

Once your account is verified, click "Edit primary accounts," and switch your primary bank account to this new bank account.

You may now remove your old bank account, and payments going forward will be taken from your new bank account (now your new "primary account").

If you would like to make a payment by phone, please call 1-866-615-6319. Please have your bank account and routing numbers on hand during the call. We cannot accept payments by credit or debit card.

If you would like to make a payment by mail, please mail your check, money order, or cashier's check to:

Prosper Marketplace, Inc.
Attn: Payments Processing
268 Bush Street, Box 3134
San Francisco, CA 94104

Please include your first and last name & loan number on your checks.

Yes. If you have at least $25 (the minimum payment amount) in your Prosper account, one of the "Source of funds" options will be your Prosper account. Once you select his option and enter the payment amount, your payment will be made automatically from your Prosper account.

Yes. If you are going to make a partial prepayment or pay off the total amount of your loan, go to "My Account >Borrowing" and click "Make payment". There is never a fee for making prepayments or paying off your loan early. The principal balance, along with any interest accrued to the date on which the payment will be initiated (which may be one or more days in the future), will be added together to determine the amount required to pay off the loan.

Yes. Please contact customer support to assist you in cancelling the automatic monthly ACH payment.

No. Unfortunately, it's not possible to change your payment due date at this time.

The automatic monthly ACH payment is always for the same amount. You can make an extra manual payment to pay down your borrower loan or pay off your loan in full. There is never a fee for doing this.

If you are late on a borrower loan payment, your loan is considered delinquent, and failed payment and late fees may be assessed.

Each month, your monthly loan payment is automatically withdrawn from your bank account on file. If you receive an email from Prosper that your payment failed, it usually means that your account has insufficient funds, or that the bank account on file at Prosper is out of date or incorrect. In either case, you will pay a failed payment fee and can fix the problem with no further penalty by making a manual payment before you are 15 days past due. Make a payment now. If your bank account information is out of date, be sure to add a new bank account first.

If you can't make a payment, Prosper will follow the delinquency schedule. Please note that at all times interest continues to accrue on the principal balance of your loan, in addition to any failed payment or late payment fees assessed.

If your borrower loan becomes more than 120 days past due (approximately 4 months), your loan will be considered "charged-off". This does not mean your loan has been excused or forgiven in any way – you are still obligated to make payments. When a loan is charged-off, the entire balance is accelerated, meaning it is collectible in full as of the charge-off date.

Interest continues to accrue on the principal balance as usual. There are no changes to the interest rate or the way interest is accrued. Late fees are no longer assessed after charge-off.