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
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.
For 16 years, Danny Clark has worked as a customer service engineer for a telecommunications company in Indianapolis, but for years he also harbored another secret desire: to become a race car driver. Unless you’re backed by a giant company though, that can quickly become a prohibitively expensive hobby. He tried to take out a loan three years ago to make his dream come true, but local banks all turned him away. So, he turned to marketplace lending.
Today, Danny drives his outlaw Micro Sprint, an open-wheel racing car with a 600cc motorcycle motor, in 20 to 25 races per year in Indiana, Illinois, Tennessee and Oklahoma in his spare time. Here, Danny shares how a five-year loan through Prosper helped him pursue his lifelong passion:
How did you learn about Prosper?
The local banks didn’t want to help me out. I was going to fund some of it myself and get a personal loan for the rest of it, but the local banks weren’t an option. That’s when I started asking around about other loan options, and a family member told me about peer-to-peer lending and specifically, Prosper. It sounded like just the thing I was looking for.
How has Prosper helped you fund your car racing hobby?
In the first year of racing, the initial investment for a car, trailer, tools and other things costs a fair amount of money — about $30,000 for me. After the initial investment, the ongoing cost isn’t as bad as long as you don’t tear up your equipment. The second year, expenses were about half of what they were the first year, about $15,000 give or take. This year, I’m already at $6,000. As long as I stay in the same car, don’t wreck my equipment and keep recurring costs low — I had one major wreck last year — I can take care of the costs myself and work on paying off my loan.
What’s one of the biggest benefits of marketplace lending?
With the loan through Prosper, I can still race, pay the recurring costs on my own, make my normal payments and save in my 401K. Some people may have a dream car or dream house. You can probably get a loan from the local bank for those things. For buying a sprint car, you can’t just go through the classic loan options. Prosper allows you to take care of that initial investment, turn it into a payment plan and continue to pay your bills. It was such a simple, easy process from the response via email to checking on loan status online.
What tips would you give others with similarly expensive hobbies?
I believe it’s good to pay for things with cash and have the money upfront. I’ve done that for many years and still have a retirement account. But racing cars is something I’ve wanted to do my whole life. The process to fill out the Prosper application was really simple and quick. It’s a lifestyle decision in my mind. If there are other hobbies you want to do, Prosper gives you the ability to do that and be reasonable about it because traditional banks typically have higher interest rates than those you can get through Prosper.
*Loans through Prosper are made by WebBank, a Utah-chartered industrial bank, member FDIC. Annual Percentage Rate depends on credit history, income, and other factors.
Today we are very excited to announce we have officially surpassed $3 billion in personal loans issued through the Prosper platform since inception. In April 2014, we announced that we crossed the $1 billion mark. It took us eight years to reach that milestone and it was huge achievement for our company. Just six months later, in October 2014, we announced that we crossed $2 billion in loans. And now, just five months after that, we’ve surpassed $3 billion. In addition, we closed out a record first quarter with $595 million in loans through the platform in the first quarter of 2015. Since 2006 we have helped hundreds of thousands of people get one step closer to achieving their financial goals.
We could not have achieved this success without the Prosper community. We’re grateful to borrowers, investors and partners that have worked with us over the years. At Prosper, our customers’ stories inspire us, and so this week, we want to highlight some of these great stories on our Facebook page and Twitter feed. Please visit us on social to read about how people have used a Prosper loan for everything from debt consolidation to paying for medical expenses to home improvement and special occasions. We also want to hear from you. We hope you’ll continue to share your stories through a tweet or comment on our Facebook page using the hashtag #HowIProsper.
As we build our business, we continue to look for new partnerships and opportunities to bring our product to more people. To this end, Prosper made two significant announcements so far in 2015:
In February Prosper Marketplace announced its first acquisition of American Healthcare Lending. The addition of what is now Prosper Healthcare Lending gives us the opportunity to bring a consumer-friendly option for financing elective medical procedures to an industry that has been characterized by high rates and a lack of options.
Prosper Marketplace also announced its first partnership with a consortium of community banks through Western Independent Bankers, giving more than 160 independent and community banks in 13 western states in the U.S. unprecedented access to affordable consumer loans through the Prosper platform.
We are also proud of the awards and recognition we have received this year. Prosper was recently named one of Forbes’ “Most Promising Companies in America” in 2015 and is part of the Always On 2015 OnFinance Top 100, an award recognizing the most promising private companies in business, personal finance and digital currencies. For the past three years Prosper has been recognized as one of the fastest growing private companies in the Bay Area by the San Francisco Business Times.
Thank you to all of our customers and partners for your continued support. Every day we are working hard to exceed your expectations of what a financial company can be.
Kevin Johannes, a seventh degree black belt and owner of TASK Karate Academy, borrows through Prosper Loans because it offers him the best interest rates. But, that’s not the sole purpose of his loans.
As the owner of a karate and family fitness center in Wixom, Michigan, Johannes took out a loan to buy new exercise equipment for the preschool and kindergarten programs. With new foam machines and trampolines, preschoolers can grow strong and stay active, and kindergarteners develop tactical skills by practicing rolls on new floor mats and kicks with target aids.
The Dojo, or training hall, is fully matted for safety and mirrors help students develop proper form. Students use heavy bags, focus mitts and kick target aids to improve their technique and learn proper contact. Because the academy has updated equipment, students receive more advanced training and are winning more competitions, including the World Karate & Kickboxing Commission World Championships. Johannes is thankful to the Prosper community for helping him teach young kids karate skills and self discipline with updated equipment — and we’re thankful to him for training a new generation of karate kids!
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.