Prosper Review 2026

Marketplace-rooted personal lender now bank-funded via WebBank, with soft-pull pre-qual and co-applicant option.

Get started at WebBank (originated through Prosper Marketplace, Inc., NMLS #111473) → Pre-qualify (where available) with a soft credit pull — no score impact.

ClearValue Rating: 4 / 5 — our editorial assessment (how we rate)

Editorial3.6
Cost4.0
Value3.9
Access4.6

Editorial confidence (30%), cost (25%), value (25%), accessibility (20%) — scored consistently across every product, independent of compensation.

At a glance

Who Prosper is best for

Good-to-fair credit borrowers (640+ FICO) who want a soft-pull rate check and the option to apply with a co-applicant.

Pros

Cons

Prosper requirements

Prosper alternatives

LightStream (Truist Bank) — Borrowers with 720+ FICO who want the lowest APR, longest terms, and no fees.
Read review Get started at Truist Bank →
SoFi Personal Loan (SoFi Bank, N.A.) — Borrowers who want flexibility, member benefits, and unemployment protection at competitive rates.
Read review Get started at SoFi Bank, N.A. →
Marcus by Goldman Sachs (Goldman Sachs Bank USA) — Borrowers who want a no-frills loan with predictable payments and a meaningful on-time bonus.
Read review Get started at Goldman Sachs Bank USA →

Bottom line

Prosper — Marketplace-rooted personal lender now bank-funded via WebBank, with soft-pull pre-qual and co-applicant option. Best for: Good-to-fair credit borrowers (640+ FICO) who want a soft-pull rate check and the option to apply with a co-applicant.. Compare it against alternatives before applying; the right fit depends on your situation, credit, and goals.

Questions about Prosper

Is Prosper a legitimate lender?

Yes. Prosper Marketplace, Inc. (NMLS #111473) is a licensed marketplace lender operating since 2005. All personal loans are originated by WebBank, an FDIC-insured Utah-chartered industrial bank regulated by the FDIC. Prosper has served over 2 million customers and holds a BBB Accredited Business designation with an A+ rating. Loans are governed by Truth in Lending Act (TILA/Regulation Z) disclosure requirements. Verify current licensing and disclosures at prosper.com.

What is the interest rate (APR) on a Prosper personal loan?

Prosper's published APR range is 8.99% to 35.99%. This range reflects the full spectrum from strong-credit borrowers at the low end to fair-credit borrowers at the high end. Your actual APR depends on your credit score, credit history, income, loan amount, and loan term. The APR includes the origination fee (1–9.99%), which is incorporated into the figure under TILA/Regulation Z — so the APR is the true all-in cost. A sample from Prosper's own disclosure: a $10,000 loan over 3 years at 16.66% interest plus an 8.99% origination fee results in a 23.53% APR and $354.84 monthly payment. Use the soft-pull pre-qualification at prosper.com to see your actual rate before a formal application.

Is Prosper still peer-to-peer lending?

No longer in the traditional sense. Prosper launched in 2005 as a peer-to-peer marketplace where individual investors funded individual borrower loans. Today, all personal loans are made by WebBank — a partner bank that originates the loan. The peer-to-peer investor marketplace still exists as a separate investment product, but your loan as a borrower is bank-funded from day one. This is a meaningful structural change: you are borrowing from a regulated bank, not an anonymous investor pool.

How does Prosper's origination fee work?

Prosper charges an origination fee of 1–9.99% on every loan — one of the wider ranges in the personal loan market. The fee is deducted from your loan proceeds at funding, not charged separately. For example, on a $10,000 loan with a 5% origination fee, you receive $9,500 in your bank account but repay the full $10,000. The origination fee is factored into the APR under TILA/Regulation Z, so the disclosed APR represents your true all-in cost (not just the interest rate). When comparing lenders, compare APRs — not just interest rates — because a lender with a lower stated interest rate but a high origination fee can be more expensive overall.

How we rate

Every pick gets a 1–5 ClearValue Rating computed from four weighted factors: Editorial confidence (30%), Cost (25%), Value (25%), and Accessibility (20%).

Scored consistently across every product and independent of any compensation. Full methodology →

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