Prosper Borrower Help

Applying for a Loan

Who can borrow money on Prosper?
A new Prosper borrower must be a U.S. resident in a state where Prosper loans are available, and must have a bank account, a Social Security number, and a credit score of at least 640. Prosper uses Experian to obtain credit scores. Depending on their qualifications, approved borrowers can request unsecured loans from $2,000 to $35,000.

What states are open for borrowing on Prosper?
Prosper is available to borrowers in the following states: Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Kansas, Kentucky, Louisiana, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin and Wyoming.

At this time, Prosper is not available to borrowers in the following states: Iowa, Maine and North Dakota.

borrowers map

What kinds of loans are available on Prosper?
Prosper offers fixed rate, “fully amortizing*”, unsecured loans from $2,000 to $35,000. Loan terms of three and five years are available, depending upon Prosper Rating and loan amount. There are no penalties for paying off your loan early or for making partial prepayments.

*** For example, if you have a Prosper Rating of E and take a loan for $4000.00, then you will be charged a $200.00 closing fee. You will then receive $3800.00 in cash deposited directly into your bank account. If you have a E rating and no previous loans and take a 5 year loan, your interest rate will be 23.44% (26.00% APR) and your scheduled monthly payment will be $113.78.

What are loan interest rates?
Loan interest rates are set by Prosper and are based on factors including:

  • Prosper Rating
  • Expected loss rate
  • Loan term
  • Economic environment
  • Competitive environment

Rates can change over time. The current interest rates are:

*** For example, if you take out a loan for $5000.00 for three years and you have a Prosper Rating of, your interest rate will be 31.34% (35.36% APR) and your scheduled monthly payment will be $215.94.

How much can I borrow?
Prosper loan amounts range from $2,000 to $35,000. The maximum loan amount for any borrower is determined by the borrower’s Prosper Rating, as shown in the table below:

Note: In limited instances, the maximum loan amount may differ due to constraints based on other variables.

What is the difference between a listing and a loan?
A listing is your request for a loan. Your listing will be displayed for investors to view. Not all listings become loans. For example, some listings don’t get enough investors, and some borrowers withdraw their listings midway through the listing process. You will receive a loan if investors commit a sufficient amount of funds to your loan and your information has passed the verification process, as needed.

What are the fees for getting a loan?
There are no fees for posting a borrower listing on Prosper. Fees are only charged if your loan is funded and money is transferred to you.

Closing fee
The closing fee is a percentage of the amount borrowed and varies by Prosper Rating:

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 have a Prosper Rating of HR and take a loan for $5000.00, then you will be charged a $247.50 closing fee. You will then receive $4752.50 in cash deposited directly into your bank account. If you have a HR rating and no previous loans and take a 3 year loan, your interest rate will be 31.34% (35.36% APR) and your scheduled monthly payment will be $215.94.

Special circumstances

$15 failed payment fee: A failed automated withdrawal, returned check, or bank draft will result 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 investors. Prosper does not retain late fees.

How can I make my loan payments?
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 the simplest method and the one preferred by investors. The second option is bank draft. Most borrowers will select the electronic funds transfer option, which is 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.

How quickly will I get my money?
Your listing will end as soon as it is sufficiently funded or after 14 days, whichever comes first. Once the listing ends, Prosper must complete a loan review process before the loan is approved. Prosper may require additional documentation from you as part of this review. A prompt response will speed up the process. The Verification Stage, seen on your loan listing, serves as an indicator of your loan application’s progress. Watch your Verification Stage closely and be sure to submit any requested information or documents as soon as possible. If all requirements are met, you will receive loan proceeds as early as two but possibly up to eight business days after the listing is fully funded.

How do I verify my email address?
Prosper will send an email to the email address you provide when you join Prosper. To verify your address, click on the “verify my email address” link.

If you haven’t received the email, first try checking your “spam,” “bulk,” or “junk” folder. 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.

Will identity verification affect my credit score?
Posting a listing will not affect your credit score if you do not receive a loan. An inquiry – which can affect your credit score – will be posted to your credit report only if your listing is funded and you receive a loan. If you post a listing and it is not funded and you do not receive a loan, you will not receive an inquiry on your credit report.

What is the Verification Stage?
The Verification Stage is a 3-stage indicator of the progress of your Prosper loan application, based on Prosper’s verification of your identity, information and documents you’ve submitted that are key to evaluating your loan. You can improve your Verification Stage by making sure you submit documents promptly so your loan application can be processed faster. Reaching Verification Stage 3 gives you a much better chance of receiving a loan.

What is the purpose of Verification stage?
The Verification Stage icons tell you and prospective investors how far along Prosper is in verifying the information you submitted, in order to process your loan application. The higher the Verification Stage, the more attractive your listing is to investors. You can help improve the Verification Stage by submitting required documents promptly upon request. This will help complete your loan application process sooner so you get your money faster.

How do I view my loan application’s Verification Stage?
The Verification Stage of your loan application is represented as an icon next to your Loan Listing on your My Accounts page; investors can view it as well on the Browse Listing and Loan Summary pages.

How is the Verification Stage different from the Prosper Rating?
The Prosper Rating is a proprietary system used to maintain consistency when evaluating each listing. Prosper Ratings allow potential investors to easily consider a listing’s level of credit risk because the rating represents an estimated average annualized loss rate range. In contrast, the Verification Stage is not a measure of potential credit risk. It is an indication of the progress of your loan application based on verification of required information and documents. Since the Verification Stage lets you know where your loan application stands in the verification process, consider it a helpful reminder to submit documents promptly, which will help you get your money faster.

Does reaching Verification Stage 3 guarantee that I’ll receive a loan?
Reaching Verification Stage 3 only indicates that Prosper has verified most of the information and documents you have submitted and does not guarantee that your loan will be funded. But the sooner your loan reaches Verification Stage 3, the sooner Prosper can complete processing, and the more likely it will be that the loan will originate.

What do the V-1, V-2, and V-3 icons mean?
vstage icon 1 Verification Stage 1
The borrower needs to submit documentation for Prosper to verify. The further along in verification, the higher the Verification Stage and the more likely the loan will originate. The borrower can advance to a higher Verification Stage by promptly submitting requested documents.

vstage icon 2 Verification Stage 2
Prosper has verified some information provided by the borrower, but there are still items pending verification. The further along in verification, the higher the Verification Stage and the more likely the loan will originate. The borrower can advance to a higher Verification Stage by promptly submitting requested documents.

vstage icon 3 Verification Stage 3
Prosper has verified most of the information provided by the borrower. Additional documentation may still be required, but loans in Verification Stage 3 are very likely to originate.

How can I improve my Verification Stage?
Keep an eye out for messages from Prosper regarding information and document requests, respond by submitting answers or documents promptly. This will help complete your loan application process so you get your money faster.

What is a Prosper Rating?
A Prosper Rating is a proprietary credit rating Prosper assigns to each listing that corresponds to an estimated loss rate range. Potential investors use Prosper Ratings to help them to decide which listings to commit funds to. Learn more about Prosper Ratings and estimated loss rates.

What is the credit report score range on my listing?
In addition to the Prosper Rating, your borrower listing will also show a credit score range based on your Experian FICO®08 credit score.

What should I do if I disagree with my Prosper Rating or credit report score range?
If you disagree with your Prosper Rating 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.

Why is my credit score different from my Experian Scorex, Equifax, or TransUnion score?
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. To produce the Prosper Rating, Prosper uses the FICO®08 credit score in addition to our own in-house custom score which was built on a population of Prosper borrowers and comparing their performance to information contained in credit reports.

How do I create a successful listing?
A good listing should answer the following questions in investors’ minds:

  1. Have you historically repaid your debts?
  2. Will your budget let you meet your loan payments? (You can 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?

Your listing will include what you need the loan for, how much you are looking to borrow, a Prosper Rating, and additional data from your credit report that helps investors determine your likelihood of repaying your Prosper loan. Create a Listing Now.

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

How can I make changes to my listings?
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 at any time before the listing receives full funding or the 14-day listing period ends, whichever comes first. There is no fee for withdrawing your listing and creating a new one. You may not withdraw your listing after the listing receives full funding or the 14-day listing period ends.

How can I submit required documents?
The Documents page under ‘My Account’ allows you to easily upload documents required for your loan application and to view the status of documents already submitted.

Click ‘Upload’ to select a file from your computer to upload

  • You can expand each file to see full details such as date uploaded and source (web site, email)
  • Click on ‘Delete’ to remove an uploaded document – note: documents in review (Processing) or already accepted cannot be deleted

You can also email documents to [email protected].

Upload tips

  • Scan your documents in color, make sure they are clear and legible
  • Alternatively, you can upload photos of the documents straight from your smartphone
  • You may upload multiple files per document request
  • Ensure each file contains one document type, e.g. File_1 contains Driver’s license only
  • File size should be 10 MB or less
  • Accepted file formats include PDF, JPG, TIF, BMP, PNG, GIF

Document statuses

  • Received – We have received your document and it is yet to be reviewed
  • Processing – We have received your document and it is currently in review
  • Accepted – Your document was accepted and your loan application is currently in review
  • Rejected – Your document was unacceptable – any document rejection reasons will be clearly stated in red

When can I withdraw my listing?
You can withdraw your listing at any time until the loan is fully funded or the 14-day listing period ends, whichever comes first. Please see the Borrower Registration Agreement for details.

What if I have family or friends who want to help fund my loan?
When someone who knows you personally trusts you to pay them back, it may provide a measure of credibility to your borrower listing. You can invite your family and friends to invest in your borrower loan, and that person will be sent an email from Prosper. If the person you invite is not a Prosper member, the email will provide a link to sign up and invest in your loan.
If a friend or family member partially invests in your loan, they will have the option of writing a recommendation for you that other potential investors will see.

Why can’t I use my loan proceeds for postsecondary educational expense?
A federal law called the Higher Education Opportunity Act includes special requirements designed to protect students who take out “private education loans” to finance the cost of college, graduate school, vocational school, or other post-high-school education. A “private education loan” is any loan where the borrower specifically states that all or part of the proceeds will be used for “postsecondary educational expenses,” which include tuition and fees, books, supplies, miscellaneous personal expenses, and room and board.

Prosper is unable to offer private education loans for postsecondary educational expenses because some of the rules in the federal law aren’t compatible with our platform. Specifically, the law says that, once the lender approves a loan application, the borrower must have at least 30 days to accept or reject the offer. This rule is incompatible with Prosper’s platform, which requires borrowers to commit to obtaining and repaying a loan in the amount specified if their loan is funded by the end of the listing period.

Funded Listings

What if my listing ends without being funded?
If your borrower listing runs out of time and has not yet received investments sufficient to fund the loan, no loan will be made. If you want to try again, you can create a new listing at no charge.

What happens once my listing is funded?
Prosper must complete the loan review process before your loan can originate. 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 is fully funded. Remember that you may not withdraw your listing after the loan is fully funded or the 14-day listing period ends, whichever comes first.

What is a loan review? How long does it take?
Loan review helps protect investors by verifying some or all of the information you provided while registering and creating your borrower listing. The review period lasts up to eight business days after the listing period ends, and any requested documentation must be provided in that period.

What documents do I have to provide to Prosper?
If documentation is needed during loan review, you will receive an email from Prosper with specific instructions about the documents needed.

Be sure to submit requested information and documents promptly so that Prosper can verify them as soon as possible. You can monitor the progress of your loan application by watching the Verification Stage icon on your My Accounts page. This can help get your loan application completed more quickly.

Follow the instructions in Prosper’s email closely, and be sure to include the fax cover sheet attached to 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 Form SSA-1099 and a Social Security benefits letter, or bank statements showing SSA direct deposits.

What if I can’t provide documentation by the deadline?
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 is strict because it affects our investors and their investments.

How and when will I receive my loan proceeds?
Your borrower loan proceeds should be available to you one to two business days after your loan is approved. Prosper transfers your loan proceeds to you electronically using the ACH (Automated Clearing House) banking network.

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

Can I have more than one Prosper loan?
It is possible to have more than one borrower loan if you meet certain requirements. Your credit score at the time of your new loan request must be at least 640. Also, any outstanding Prosper loan is included in your $35,000 total loan limit.

Other requirements:

  • Your active loan must be current.
  • No late payments on a Prosper loan within the last 60 days.
  • You must not have a payment that was more than 15 days late on a Prosper loan within the last year.
  • You cannot have more than 2 returned loan payments within the last 3 years.
  • A minimum number of months must have passed since your last loan was made, listed below.
  • A minimum number of consecutive on-time payments must be made on your previous loan, listed below.

Requirements by credit score range for second loans:

If you have two loans, each loan may have a different payment date. Your loan payments cannot be combined.

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

Payments

How do I make loan payments?
By default, 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 failed payment fees and accrued late fees
  2. Pay down any accrued interest
  3. Pay down the loan principal balance

How do I change my bank account information?

  1. Go to “Accounts,” and 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.
  2. Once your account is verified, click “Edit primary accounts,” and switch your primary bank account to this new bank account.
  3. 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”).

Can I pay by mail or phone?
To ensure that payments are processed in a timely and efficient manner and our investors receive payments when expected, your agreement with Prosper requires you to make your payments by an automatic withdrawal through an electronic fund transfer or bank draft. As a convenience to our borrowers and at our discretion, we currently accept phone and mail payments and may charge a processing fee of up to $15.

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 do not currently charge for phone payments.

Please mail your check, money order, or cashier’s check to:

Prosper Marketplace Inc.
P.O. Box 396081
San Francisco, CA 94139-6081

Please include your first and last name and loan number on your checks. We cannot accept payments by credit or debit card.

Can I pay off my loan early?
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. If you are paying off your loan in full, 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.

Can I cancel the automatic ACH payment?
Yes. Please contact customer support to assist you in canceling the automatic monthly ACH payment and switching to monthly bank draft service.

Can I change my payment due date?
No. Unfortunately, it’s not possible to change your payment due date at this time.

Can I pay extra on my monthly loan payment?
The automatic monthly ACH or bank draft 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 are no prepayment fees. Make your payment by going to “My account > Borrowing” and clicking “Make Payment.”

What if I’m late on a loan payment?
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 need to 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.

What does it mean to for a loan to be charged-off?
If your borrower loan becomes more than 120 days past due (you missed the last 5 monthly payments), your loan will be considered “charged-off.” This does not mean your loan has been excused or forgiven, 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.

If your loan is charged off, you will not be able to borrow from Prosper again, and your credit score may be negatively impacted.