Prosper Competitors and Alternatives

Peer-to-peer (P2P) loans connect borrowers directly with investors, bypassing traditional financial institutions. Prosper has helped process over $12 billion in loans for more than 800,000 users since 2006. In recent years, several alternatives have emerged offering loans like Prosper. 

Keep reading because we’ll explore loans like Prosper and offer insightful comparisons to help you find the right alternatives.   

Prosper alternatives for personal loans

When considering personal loans, it’s essential to explore all your options to find the best fit for your financial needs. 

Below, you’ll find an in-depth analysis of several Prosper alternative loan products, eligibility requirements, and overall user experience. Our goal is to equip you with the knowledge to choose a personal loan provider that aligns with your financial goals and personal circumstances. Whether you’re looking for lower interest rates, flexible repayment options, or exceptional customer support, our reviews will guide you toward the best available options.

Credible

SoFi

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Read More

SoFi vs. Prosper Personal Loans: See Which is Best for You 

Upgrade

Best for fair credit

4.9 _/5

LendEDU Rating

View Rates

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Why it’s an alternative to Prosper

Upgrade offers a direct lending approach, focusing on accessible personal loans that can benefit borrowers with less-than-perfect credit. Upgrade also differentiates itself with credit health tools and hardship plans, which add value for borrowers looking to improve their financial situations.

• Credit monitoring and educational resources available
• Range of loan amounts and terms
• Hardship plans for financial difficulties

• Higher interest rates for lower credit scores
• Charges an origination fee

Loan details

Rates (APR)	8.49% – 35.99%
Loan amounts	$1,000 – $50,000
Repayment terms	2 – 7 years

LightStream

Best for excellent credit

4.8 _/5

LendEDU Rating

View Rates

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Why it’s an alternative to Prosper

LightStream, a division of Truist Bank, specializes in providing low-interest personal loans to borrowers with good to excellent credit. This focus on high-credit borrowers positions LightStream as a favorable alternative to Prosper for those who can qualify for better terms. The company is known for its straightforward application process and the ability to fund loans as soon as the same day.

• Some of the lowest rates for qualified borrowers
• No fees
• $100 guarantee if dissatisfied within 30 days

• Requires high credit score and substantial credit history
• No prequalification option; a hard credit inquiry is needed

Loan details

Rates (APR)	8.49% – 35.99%
Loan amounts	$5,000 – $100,000
Repayment terms	2 – 12 years

Why you might consider Prosper alternatives

Prosper pioneered P2P lending by offering a platform where borrowers and lenders can interact. But each alternative mentioned above has a competitive advantage that might appeal to a specific or broader set of borrowers. 

Here are a few reasons to consider alternatives to Prosper:

• Competitive terms: Credible acts as a loan aggregator and lets you compare multiple offers side-by-side, so you can source the most competitive rates and terms.
• Broader loan options: SoFi offers student loans, refinancing, mortgages, investment products, and personal loans all under one roof. 
• Low credit scores: Prosper’s model might not be available to borrowers who need to improve their credit health. Upgrade targets borrowers with fair to average credit scores. 
• Low interest rates: The lowest interest rates are reserved for the most creditworthy borrowers. If you are looking to borrow larger amounts at some of the lowest interest rates in the market, alternatives such as Lightstream can be the most cost-effective options. 

Personal loans vs. peer-to-peer lending

Personal loans and peer-to-peer lending offer unique advantages. But which is right for you? Consider these factors.

• Credit score: Personal loans (from traditional lenders) often require good credit scores and a lengthy credit history to qualify. P2P lenders may be less strict and qualify you even with a low credit score. Prosper cites a minimum required FICO credit score of 560. Upgrade, our top choice for fair-credit borrowers, requires at least a 580 credit score.
• Convenience: P2P lenders have a simple online application process that is more convenient and gets you qualified faster. While personal loan applications have moved online, some lenders, such as banks or credit unions, may require an in-person visit to seal the deal. (All the lenders featured above offer a 100% online loan experience.)
• Funding source: The most significant difference between personal loans and P2P loans is the funding source. The bank or credit union funds personal loans, while an individual or a group of investors funds P2P loans.

So which do you choose? Consider obtaining quotes from Prosper or other P2P lenders as well as our top-rated traditional online lenders. This way, you can choose the one that offers you the lowest rates and best terms.

In general, you might choose a personal loan if you have good credit, need special terms, and prefer dealing with a reputable bank. P2P lending could make more sense if you want to get qualified fast, have a lower credit score, and are flexible on the lending terms. 

How to choose the best alternative to Prosper personal loans

Consider	Choose Prosper if…	Choose an alternative if…
Credit score	Your credit score is not excellent, but you are still eligible to qualify	You have a high credit score and can qualify for lower rates elsewhere
Interest rates	You’re comfortable with the rates Prosper offers	You can find better rates based on your credit score
Loan limits and terms	Prosper’s personal loan limits and terms meet your needs	You need access to larger loan amounts and special terms
Disbursement	You aren’t in urgent need of funds	You need funds fast. Some alternatives offer same-day and next-day funding.

Questions to ask yourself

Here are five questions to ask yourself before taking out a loan:

1.  How does a loan affect my credit score?
2.  What are my options?
3.  What will my interest rate be?
4.  How fast do I need funding?
5.  How long will I need to repay the loan?

More personal loan resources to consider

Explore these guides to Prosper personal loan alternatives for detailed comparisons and more options that might match your needs:

• Best Personal Loans
• Best Good-Credit Loans
• Best Fair-Credit Loans
• Best Bad-Credit Loans
• Best Online Loans
• Best Bank Loans

FAQ

How do I know which P2P (peer-to-peer) lender is best?

Choosing the best P2P lender depends on several factors, including your financial needs, credit score, and the features you value most. Here are steps to help you decide.

1. Compare interest rates: Look at the APR (annual percentage rate) each lender offers. The lower the APR, the less you will pay in interest.
2. Review loan terms: Consider the loan amounts, repayment terms, and any flexibility in payment schedules.
3. Check fees: Some P2P lenders charge origination fees, late fees, or prepayment penalties. Understanding these fees can help you minimize extra costs.
4. Read customer reviews: Get insights from other borrowers about their experiences with the lender.
5. Evaluate customer service: Good customer support can be crucial, especially if you encounter issues with your loan.
6. Consider special features: Some lenders offer unique benefits, such as hardship protection or financial advisory services.

Which is better for bad credit—Prosper or alternatives?

Prosper might be more suitable for individuals with bad credit. It typically requires a minimum credit score of 560, which is on the high end of the bad-credit range on the FICO scoring model, where bad credit is between 300 and 579. 

Upgrade is one alternative that offers loans to those with scores as low as 580. Direct lenders or loan aggregators might also provide more tailored options that can adjust to various credit profiles and offer competitive rates for those with less-than-ideal credit.

What is the minimum credit score for P2P lending vs. traditional personal loans?

• P2P lending: The minimum credit score required for P2P lending varies by platform. For example, Prosper requires a minimum credit score of 560.
• Traditional personal loans: Traditional banks and credit unions might be stricter, often requiring credit scores of 660 or higher for personal loans. However, many lenders, especially online, cater to a wider range of credit profiles. Some online lenders accept scores as low as 300, the lowest score possible, typically with higher interest rates.

In both cases, the exact credit score needed can vary based on the lender and the specific loan product. Higher credit scores will often qualify for better interest rates and more favorable terms, whether through P2P platforms or traditional loans.

Recap of Prosper competitors and alternatives