What would you be willing to do to get out of credit card debt? You may automatically think of the most extreme situation, however, you may be surprised there are a few different options that are far from the extreme you may be thinking.
One option that is becoming increasingly popular is Peer-to-Peer (P2P) Lending. P2P lending has been gaining popularity in recent years, mainly due to the fact that the rates tend to be much lower than credit card rates. That’s where Prosper comes in. Prosper is America’s first peer-to-peer lending marketplace that has provided access to over $4 billion in loans, many of which have helped borrowers consolidate their credit card debt with a lower rate.
How Can Prosper Help You?
The bottom line is a loan through Prosper.com could save you thousands. Over 200,000 people have consolidated their debt through Prosper to date, and the number is growing. Rates for the best borrowers are as low as 5.99%* and loan amounts range from $2,000 – $35,000.
Will My Interest Rate Ever Change?
Unlike credit card rates, your interest rates with Prosper will never change. Once your loan is funded it remains a fixed rate over the term of the loan. Unlike a credit card, you’ll know with certainty your monthly payment and how much of that payment goes to interest and principal.
What About 0% Teaser Rate Credit Cards?
There are a lot of advertisements for 0% teaser rate credit card balance transfers. It’s important to read the fine print on those offers. The 0% rate only lasts for a limited time, typically 6 to 12 months. If you’re able to pay off the entire balance in that time, then you’re ahead of the game. Once the promotional rate expires, rates jump significantly, often exceeding 20% and that could present an unwanted surprise.
What Makes Prosper Different?
We’ve learned that good, honest people sometimes get into debt trouble due to circumstances completely out of their hands, and often get stuck there due to all of the conflicting advice. If you have good credit, you’re a good candidate for a loan through Prosper’s peer-to-peer lending marketplace. The company connects people looking to borrow money with investors at low fixed rates, without any of the hidden fees and long wait times associated with other types of loans. Signing up is quick and easy, and you can complete the entire process online. And of course, Prosper takes your privacy seriously and will always keep your personal loan information secure and anonymous.
How Can I get Started With Prosper?
The first step in getting your loan is to check your rate. The process takes less than 2 minutes and checking your rate doesn’t affect your credit score. Prosper members have already borrowed $4 billion in loans and rates can be as low as 5.99%* for best borrowers so start saving today.
Rates Starting at 5.99% APR*
Low-rate personal loans from $2,000 to $35,000
* Based on three year personal loans made to first time borrowers with an AA Prosper Rating. To qualify for an AA Prosper Rating, applicants must have excellent credit and meet other conditions. Annual Percentage Rates (APRs) by Prosper Rating range from 5.99% (AA) to 36.00% (HR) for first time borrowers. Repeat borrowers may qualify for discounted rates. The average APR for borrowers from April 1, 2015 through September 30, 2015 was 17.25%. Rate offered is based on Prosper Rating and other factors, and your actual rate may differ. Eligibility for a loan is not guaranteed and requires that a sufficient number of investors commit to fund your loan. Refer to Borrower Registration Agreement for all terms and conditions. All loans are made by WebBank, an FDIC-insured, Utah-chartered Industrial Bank.
1 Annual Percentage Rates (APR) by Prosper Rating range from 5.99% (AA) to 36.00% (HR) for first-time borrowers. To qualify for an AA Prosper Rating, applicants must have excellent credit and meet other conditions. In the example shown above, a three-year $10,000 loan with a Prosper Rating of AA would have an interest rate of 5.32% (5.99% APR) and 36 scheduled monthly payments of $302. A five-year $10,000 loan with a Prosper Rating of A would have an interest rate of 7.49% (9.68% APR) and 60 scheduled monthly payments of $201. Rate offered is based on Prosper Rating and other factors, and your actual rate may differ.
2 According to the Bankrate.com Minimum Payment Calculator (http://bit.ly/wBsq2). This estimate assumes a 16.00% interest rate and a minimum monthly payment equal to 1% of the outstanding balance plus any new interest. Your actual minimum payment, payoff time, and payoff cost will depend on your account terms and any future account activity. Continue reading An Overlooked Way to Pay Off Credit Card Debt
We’re excited to announce Prosper has surpassed $5 billion in loans originated through its platform since inception. This follows a record quarter with $1.070 billion in loans through the platform, as well as a record daily average. It was only a year ago we crossed the $2 billion mark, and I know I speak for many at Prosper when I say we are humbled by the growth of our community in such a short period of time. And while this $5 billion milestone is a landmark for us internally, what is really important to see is how marketplace lending is completely changing lives and helping advance their financial well-being.
Hundreds of thousands of people have turned to Prosper for access to a loan. Debt consolidation continues to be the most frequent use case, with approximately 288,000 loans taken for this purpose. Here are some additional insights into our community since inception:
Home Improvement: People have been turning to us for spring cleaning and summer renovations — we have seen loans through the Prosper platform for home improvement projects such as remodels, renovations and home repair.
Many people are also taking out loans to pay for elective medical procedures such as LASIK, bariatric, dental and cosmetic surgery.
Consumers also continue to come to Prosper to borrow on their personal credit for purpose of a small business.
While it represents a small percent of our overall community, we’re proud to say that we’ve seen loans through our platform for babies and adoption—helping people realize their dreams of starting a family.
More recently, Prosper Marketplace has also pursued strategic partnerships and acquisitions to expand the company’s reach. Last month Prosper Marketplace announced that it will acquire BillGuard. The transformative acquisition is the first time that marketplace lending and personal finance management have come together to create a full suite of tools to help people make smarter financial decisions. It will be an important step in truly empowering and educating consumers to be financially secure and successful.
When Jerred Yeash and his family named their new Husky puppy “Cruiser,” they envisioned him running around the yard. Sadly, the dog was born with a physical impediment that left him unable to walk. His guardians saw him struggle as he lay on his chest, paddling the ground with his paws. Most puppies can stand and walk by the time they’re three weeks old, but others like Cruiser have such weak muscles that they’re unable to.
Jerred originally used Prosper as an investor. When he realized the expenses associated with teaching Cruiser how to walk — therapy and making their home Cruiser-friendly — he decided to turn to the Prosper community to borrow the money. Since wooden floors can be slippery and make it difficult for a dog to learn to walk, Jerred had to cover his house in Los Angeles with easy-to-grip surfaces like egg crate foam pads and rugs. After hours of therapy, Cruiser was finally able to take his first steps on his own.
“[The loan through Prosper] has given me the freedom and peace of mind to be able to take care of my dog Cruiser, who had a rough start to life,” Jerred says.
As Cruiser gained strength, he slowly learned to walk on his own and now he can do anything he tries to do. He loves playing fetch and enjoys time with his puppy friends. The loan through the Prosper platform enabled Jerred to pay for expensive therapy for Cruiser and greatly increased the quality of life for Cruiser and his family.
Today is an exciting day for our company. This morning, we announced that Prosper Marketplace will acquire BillGuard, a leading personal finance company with operations in Tel Aviv, Israel. This is a transformative acquisition for Prosper Marketplace and the industry. Until now, nobody has brought together marketplace lending and personal finance management to deliver an offering that truly empowers, protects and educates consumers. It’s also an important step in achieving our long-term vision of being a company that helps people be financially secure and successful.
BillGuard was founded in 2010 by Yaron Samid and Raphael Ouzan. The idea was born when Yaron googled an unauthorized charge on his family credit card, and saw countless others spot the same charge. That’s when he and co-founder Raphael saw the power of crowdsourcing to protect against fraud and even overspending. Since launching BillGuard, the app has amassed than 1.3 million registered users and has won almost every award in its category, including being named one of the top banking innovations of all time by Online Banking Report and a Best App of 2014 by Google.
Prosper Marketplace’s mission is to enhance financial well-being, and as we look to the future, we want to find ways beyond Prosper’s personal loan product to help people accomplish this goal. BillGuard helps us do this in a number of ways. First, it helps us create a long lasting relationship with our customers by offering them a full suite of financial tools. It also gives us the opportunity to lower our cost per acquisition, and to be in front of the customer when they are ready to make a credit decision.
In addition, we’re also welcoming an incredible group of people to the Prosper Marketplace organization. With the addition of the BillGuard team, we now have access to the impressive talent pool in Tel Aviv, a technology hub that is on par with what we have here in Silicon Valley.
The opportunity to build a team there that complements our already strong team in SF will help us further accelerate our product development.
The BillGuard acquisition follows a year of significant growth and announcements. Earlier this year, we acquired American Healthcare Lending, which has allowed to successfully extend our offering into the elective medical market, and last week, we partnered with Radius Bank to offer personal loans through the Prosper platform to the bank’s customers. The company facilitated the origination of $1.6 billion in loans through the Prosper platform in 2014 – a 350% increase from 2013 – and it expects to more than double that in 2015. To date, nearly $5 billion in loans have been transacted through the Prosper platform. In addition, Prosper Marketplace was recently named to Inc. Magazine’s 2015 Inc. 500, a list of the fastest growing private companies in America and was named one of America’s “Most Promising Companies of 2015” by Forbes Magazine.
We’re excited about our shared vision with BillGuard for the future of fintech. You can read more in the press release we put out this morning.
We’re excited to announce today a partnership with Radius Bank — a nationwide full-service bank with a leading virtual banking platform.
At Prosper Marketplace, we believe in providing innovative alternatives to how people manage their finances while offering transparency and access to competitive rates. Radius Bank also takes a forward-looking approach, in their case by providing the online and mobile capabilities of a virtual bank and the personalization of a community bank: Radius Bank customers can access their banking accounts anytime anywhere by visiting radiusbank.com using their smartphone, tablet or laptop.
Starting this week, Radius customers can apply for a loan through Prosper by visiting this site. Loan amounts range from $2,000 to $35,000, and are at fixed rates and terms.
We’re looking forward to working with a bank that has a digital, next-generation focus that aligns with our approach to personal finances. Together, this means even more people will have the opportunity to take out personal loans through the Prosper lending platform in a seamless way with their other financial activities.
Notice: Blogs and other materials posted on or linked from this page that use the name "Prosper" generally use that name to refer to Prosper Marketplace, Inc. if published before January 31, 2013 and to refer to Prosper Funding LLC if published on or after February 1, 2013.
As of February 1, 2013, the Prosper marketplace was transferred by Prosper Marketplace, Inc. to Prosper Funding LLC, a wholly-owned subsidiary of Prosper Marketplace, Inc. From and after February 1, 2013 Prosper Funding LLC is the sole obligator of Notes offered and secured by loans made through the Prosper marketplace, including Notes originally issues by Prosper Marketplace, Inc. prior to such transfer. Prosper Marketplace Inc. contiinues to provide services to Prosper Funding LLC relating to loan and Note servicing, and may interact with borrowers and investors in relation thereto as agent of Prosper Funding, LLC. Except where otherwise noted, throughout this website "Prosper" refers to Prosper Funding LLC including acting directly or through its agents.
All personal loans are made by WebBank, a Utah-chartered Industrial Bank. All Prosper personal loans are unsecured, fully amortizing personal loans.
Notes offered by Prospectus. Notes investors receive are dependent for payment on personal loans to borrowers. Not FDIC-insured; Investments may lose value; No Prosper or bank guarantee. Prosper does not verify all information provided by borrowers in listings. Investors should review the prospectus before investing.