What the Prosper Credit Card Is
Prosper does not currently offer a credit card. Prosper is a peer-to-peer lending platform where borrowers take out personal loans funded by individual investors. If you have seen references to a "Prosper credit card," you may be thinking of a different product, or the information may be outdated.
Prosper's main product is a personal loan — a lump sum of money you borrow and repay over a fixed period, typically three or five years. The loan comes with a fixed interest rate and a set monthly payment. This is different from a credit card, where you have a revolving credit line and pay interest only on what you use.
If you are looking for a credit card, you would need to look at other issuers. If you are interested in a personal loan through Prosper or another peer-to-peer lender, the process and terms are different from a traditional credit card process.
Key Takeaways
- Prosper offers personal loans, not credit cards, and funds them through a network of individual investors rather than a bank.
- A Prosper loan gives you a fixed amount upfront, a fixed interest rate, and a set repayment schedule — not a revolving credit line like a card.
- Loan amounts range from $2,000 to $40,000, and terms are either three or five years.
- Prosper checks your credit and income before funding, and the interest rate you receive depends partly on your credit profile.
- If you need a credit card instead, you should look at card issuers directly rather than peer-to-peer lending platforms.
How Prosper Personal Loans Work
When you borrow through Prosper, you request a loan amount between $2,000 and $40,000. Prosper then assigns you a risk category based on your credit score, income, and other financial information. Investors on the Prosper platform review your listing and decide whether to fund your loan. Once your loan is fully funded, the money is deposited into your bank account, usually within a few business days.
You then repay the loan in fixed monthly installments over either 36 months (three years) or 60 months (five years). The interest rate is set when your loan is funded and does not change. Unlike a credit card, you cannot borrow more once the loan is disbursed, and you cannot make a partial payment and skip the next month — the payment schedule is fixed.
Interest Rates and Fees
Prosper's interest rates vary based on your credit score, income, employment history, and the loan term you choose. Rates are not published as a single number; instead, Prosper shows you the rate you may have access to for only after you submit your information. Rates have historically ranged from around 6% to 36%, but your actual rate depends on your individual profile.
Prosper charges an origination fee, which is a one-time cost deducted from your loan before you receive it. This fee typically ranges from 1% to 5% of the loan amount, depending on your credit profile. There is no prepayment penalty if you pay off your loan early. Late fees explore if you miss a payment.
Who Can Borrow From Prosper
To borrow from Prosper, you must be a U.S. citizen or permanent resident, at least 18 years old, and have a valid Social Security number. Prosper does not lend to residents of Iowa or North Carolina due to state lending regulations.
Prosper reviews your credit report and verifies your income. You do not need perfect credit — Prosper lends to people with credit scores in the 600 range and below, though your rate will be higher. You will need to provide proof of income, such as recent pay stubs or tax returns, and Prosper may verify your employment by contacting your employer.
Prosper Versus a Credit Card
A personal loan and a credit card serve different purposes. A credit card gives you a revolving line of credit — you can borrow up to your limit, pay it back, and borrow again. You only pay interest on the balance you carry. A personal loan gives you a fixed amount once, and you repay it on a set schedule whether you use the money all at once or spread it out.
Personal loans typically have lower interest rates than credit cards, especially if your credit is fair or poor. However, you cannot access more money once the loan is disbursed. Credit cards offer flexibility; personal loans offer predictability and usually a lower cost to borrow.
If you need a credit card, you should look at card issuers directly — banks, credit unions, and card companies like Chase, Capital One, or Discover. If you need a lump sum of money and want a fixed repayment plan, a personal loan through Prosper or a bank may be a better fit.
How to Get a Prosper Loan
To explore a Prosper loan, you visit Prosper's website and enter basic information: your desired loan amount, the reason for the loan, and your annual income. Prosper will give you an estimate of the interest rate range you might receive, though this is not a may provide.
If you want to move forward, you complete a full process. This includes providing your Social Security number, verifying your income with recent pay stubs or tax returns, and authorizing a hard credit pull. Prosper will also verify your employment. The entire process typically takes a few days to a week.
Once Prosper approves your process, your loan listing goes live on the platform. Individual investors then review your profile and decide whether to fund your loan. Funding can take anywhere from a few hours to several weeks, depending on how quickly investors commit their money. Once your loan is fully funded, the money is transferred to your bank account.
Alternatives to Prosper
If you are looking for a personal loan, other peer-to-peer platforms include LendingClub and Upstart. Traditional banks and credit unions also offer personal loans, often with lower rates if you have good credit and an existing relationship with the institution.
If you are looking for a credit card, you can look at cards designed for people rebuilding credit, such as secured credit cards, or cards with higher interest rates but no annual fee. The best option depends on your credit score, how much you need to borrow, and whether you need the money as a lump sum or as a revolving line of credit.
Frequently Asked Questions
Does Prosper offer a credit card?
No. Prosper offers personal loans only. If you are looking for a credit card, you need to look at credit card issuers directly, such as banks, credit unions, or card companies.
What is the difference between a Prosper loan and a credit card?
A Prosper loan is a fixed lump sum you borrow once and repay over a set schedule. A credit card is a revolving line of credit where you can borrow, repay, and borrow again up to your limit. Personal loans usually have lower interest rates but less flexibility.
Can I borrow more money after my Prosper loan is funded?
No. Once your loan is disbursed, you cannot borrow additional money through that loan. You could explore for a new loan later, but each process involves a new credit check and funding process.
How long does it take to get money from Prosper?
After your process is approved, your loan listing goes to investors. Funding can take anywhere from a few hours to several weeks. Once fully funded, money is usually deposited into your bank account within a few business days.
What if I have bad credit — can I still borrow from Prosper?
Yes. Prosper lends to people with credit scores below 600, though your interest rate will be higher. You will still need to verify your income and pass employment verification.