Prosper leading online lenders that offer personal loans fast and with competitive rates. Prosper is a peer-to-peer lender, meaning your loan typically will come from individual investors.
Prosper offers unsecured personal loans that can be used for almost any purpose, including debt consolidation and home improvements. The loans require a fixed monthly payment over three or five years.
If you are hoping for a deposit on the same day, Prosper is not the lender for you. Because your loan is paid by several investors instead of one, you will not receive your money immediately. Prosper also charges start-up costs that are equal to two to five percent of your borrowed amount.
Prosper Benefits
A personal loan is characterized with many benefits. One of its benefits is its ability to give the investor an opportunity of owning an asset even without enough funds that cater for its entire cost. Similarly, when you obtain a personal loan, it gives you an opportunity of owning a real estate with less risk. Another benefit is that repayment of this loan is relatively easier since it is paid on annual basis.
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Below are some of the Prosper features:
- Available for those who have insufficient credit: Prosper is a good choice for those who have been denied by banks and people who can not get a reasonable interest. Prosper offers loans to people with a FICO score of only 640. Although high-risk borrowers have to pay higher interest rates, they are certainly cheaper than what you could get with a lender. .
- Fixed rate loans: all Prosper loans are delivered with a fixed interest rate so that in the long term you do not have to worry about an increase.
- Borrowing up to $ 35,000: with Prosper, you can borrow between $ 2000 and $ 35,000. Most personal lenders do not allow you to borrow more than $ 25,000. Prosper is a right choice if you need to borrow more money.
- Fast online application: by answering a few basic questions about yourself and your finances, you receive an estimate of your interest rate..
- Limited loan conditions: Prosper requires that you choose a term of three or five years. While this should be good for most people, most lenders give their borrowers more flexibility when repaying their loans.
- No Early Redemption Fee: if you decide to repay your loan before the end of the term, no extra costs will be charged to compensate for lost interest.
- Earn money by investing: if you have money, you can earn some by paying part of the loans of other people. When they repay the loan, you receive the money that you have invested plus interest. The amount you earn depends on the interest rates of the loans to which you have contributed.
- Mobile money management apps: Prosper mobile apps for iOS and Android devices help you track your spending and credit over time. Register all your purchases to see how you spend your money and look for chances to save. You can add protection against identity theft for an extra charge.
A Smart Choice
It can be considered a smart choice to think about Prosper personal loans today, as they offer you the opportunity to get money that can really help you out of a bind. This bind will come and go, but the credit score increase that you will get will only provide you with a stronger financial platform from which to work with. When you make payments to a prosper, that meet the timeframe that was laid out you will be establishing credit. This credit will serve as a strong point when you need to apply for other various forms of credit, such as store line credit or a future loan. Once you have paid back in full the money you borrowed from the prosper, they will report to the three major credit agencies and inform them on your payment history with them. This will go on record, and will be shared with other various lenders and credit companies. Good reports go along way, when it is in regards to money borrowed.
Prosper is also a good option for those who want to reduce their monthly payments and want to repay their loans over a longer period. Times are fixed at 36 or 60 months – and if your financial situation improves and you can pay faster, no penalty is imposed.
Pros
- Unsecured personal loans do not require any guarantee
- Increase your credit score
- Get the money you need quickly
- A good credit can give you a lower interest rate
- Most are fixed-rate loans, which makes budgeting easier
The cons
- Bad credit may result in the rejection of your application.
- Approved borrowers with subprime credit could receive higher interest rates
- Many come with start-up costs or borrowing
Summary
Prosper is the right choice if you need a loan, but are not eligible for conventional financing. Interest rates are reasonable compared to most credit cards and flash credits and there are no prepayment costs. You can not get your money right away, so be patient.
