Julia Anderson
See how a peer-to-peer lender like Prosper can help you get up to $40,000 to cover your costs, even if you have less than perfect credit.
A traditional personal loan lender could save the day if you needed significant funding to cover emergency costs, make a big purchase, or consolidate your debt. What’s the problem with personal loans? Many of their lenders only work with borrowers who have excellent or good credit. In other words, if your credit history is less than perfect, you may face obstacles when applying for a personal loan.
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What’s another option for getting a big loan if your credit score isn’t too high? A peer-to-peer lender like Prosper, which can give you a loan of up to $40,000 to pay for large expenses.
Peer-To-Peer Lending Explained
A peer-to-peer (P2P) lender offers loans thanks to funding from multiple investors looking to invest in a good cause and get a decent return on their money. Since P2P lenders work with multiple investors, this increases your chances of getting a loan and a lower interest rate, even if your credit score isn’t in the top tier. Here are some essential bits of info on peer-to-peer loans:
- They may be easier to qualify for than standard loans since P2P lenders often have more relaxed requirements than banks and traditional lenders.
- Since they may accept lower credit scores and higher-risk borrowers, P2P lenders may charge higher interest rates and fees than traditional loans.
- Applications for P2P loans can usually be completed online.
- Lending decisions are typically quick.
- If approved, your loan’s funds could be disbursed within a few days.
- While P2P loans and crowdfunding offer lump sums of cash via several investors, they are not the same. P2P loans are based on a borrower’s creditworthiness and must be repaid with interest over time. Crowdfunding represents donations from people looking to invest in a worthy cause, such as a business or idea.
$40,000 P2P Loans From Prosper
Now that you get the gist of how peer-to-peer loans work, let’s discuss Prosper, a popular P2P lender. With Prosper, you can get a P2P loan from $2,000 to $40,000 and have three to five years to pay it back. The APR ranges from 7.95-35.99 percent, depending on your credit. The minimum credit score is 600.
What can you use a P2P loan from Prosper for? Things like:
- Buying a car.
- Paying off household expenses.
- Improving or repairing your home.
- Consolidating your debt.
- Paying down medical debt.
- Taking a vacation.
While other P2P lenders may take longer to disburse funds, you could get your cash from Prosper in as little as one business day after applying. To get your loan from Prosper, do the following:
- Visit Prosper’s page and take their quick quiz to estimate your interest rate.
- Choose your monthly payment by selecting your loan terms of either three or five years.
- If approved, get your funds via direct deposit.
If your credit score is below 600, Prosper will let you apply with a co-borrower to see if you qualify using their good credit. It’s worth noting that if you get a loan from Prosper, there is an origination fee of 2.4-5 percent of the loan amount. And if you repay the loan via check, Prosper will charge you a $5 fee or 5 percent of your loan payment amount, whichever is less.
